Common Myths about Financial Planning

Myth 1 – I can do my own Financial Planning

For some people, this might be fine. Around 2 in 5 people see this as a barrier to seeking advice. Today, we have access to so much information at our fingertips and friends and family will offer well intended views based on their own personal experiences. However, it can be difficult to define your goals and objectives and create your own personal plan, tailored to your needs. Most aren’t familiar with more complex aspects of finances such as forecasting or cash flow modelling. It is worth questioning, when considering your finances, whether the ultimate cost of taking a DIY approach is worthwhile – especially with more complex decisions. Having a financial planner guide you and stick with you should make things less stressful, safer and give you peace of mind.

Myth 2 – Financial Advice is only for rich people

Around a quarter of those thinking about seeking professional advice think that you need at least £100,000 to invest. In reality, a financial planner with knowledge and experience can add real value to those with more modest assets. Monetary value isn’t always the same as complexity. Everyone across the wealth range can benefit from tailored advice. Sometimes, the issue isn’t money at all – don’t forget that whole of market advisors can compare and contrast life insurance, income protection and business protection policies making sure any terms are suitable for your needs. More often than not, when it comes to insurance products, the adviser limits their fees to any commission paid by the insurer which means no costs to the client themselves.

Myth 3 – Financial Planning is too expensive

Cost is perceived as a barrier to around a third of those considering advice. More interestingly, 9 out 10 don’t actually know don’t how much professional advice costs. Of course, advisors do charge a fee for their service – much like a plumber or accountant would – and it is important that part of the value they deliver is peace of mind. At Milestone, we are completely up front and transparent about the costs of any recommendations made before we proceed to implementation. Whenever looking at financial planning it is important to consider both the monetary costs but also the reduced stress knowing that your finances are being taken care of by a professional.