Newspaper article The Journal (Newcastle, England)

Can You Afford Not to Use an Independent Financial Adviser? Ian Lowes, Managing Director of Lowes Financial Management, Highlights a Recent Study Which Shows, Categorically, the Value People Can Obtain from Using an Independent Financial Adviser

Newspaper article The Journal (Newcastle, England)

Can You Afford Not to Use an Independent Financial Adviser? Ian Lowes, Managing Director of Lowes Financial Management, Highlights a Recent Study Which Shows, Categorically, the Value People Can Obtain from Using an Independent Financial Adviser

Article excerpt

A RECENT study has found that those who received financial advice were, on average, PS40,000 better off than their unadvised peers over the same period, and that applies to both affluent investors and those 'just getting by'.

One of the reasons that people give for not wanting an independent financial adviser to help with their personal finances is that they do not see the value in paying for the advice. After all, these days you can easily buy savings and investments yourself from websites on the Internet, can't you? Yet this recent research - carried out by the International Longevity Centre - UK (ILC-UK), one of the leading think-tanks in the country, and supported by life assurer Royal London, as part of 'the largest representative survey of individual and household assets in Great Britain' - blows that argument out of the water.

The research examined the impact of financial advice on two groups of people: The 'affluent', a wealthier group of people who were more likely to have degrees, be part of a couple, and be homeowners; and those 'just getting by', a group formed of the less wealthy who were more likely not to have studied to degree level, be single, divorced or widowed and renting.

This long-term research compared the wealth of these two groups in 2001-2007 and 2012-2014.

The results showed that the 'affluent but advised' group accumulated on average PS43,245 more in the period because they had sought financial advice, compared to their affluent but non-advised' counterparts. Similarly, those in the 'just getting by but advised' group accumulated on average PS39,895 more than those who didn't seek advice.

One of the reasons for this significant discrepancy was that people who had sought financial advice, first of all, were more likely to save (around 7 to 10% more likely) but secondly, and importantly, their money worked harder for them, being more appropriately invested. …

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