Is it worth paying for an Independent Financial Advisor (IFA)?

This will depend on your answers to 5 important questions:

1. Have I the financial knowledge to select my own investments?
2. Have I the time to analyse thousands of fund options?
3. Can I predict my income requirements over my full lifetime?
4. Can I calculate the final amount I shall need in my pension to retire on?
5. Am I confident I can manage my investments through all the stock market ups and downs?

If you’ve answered NO to any of these you’d be well advised to seek the services of an Independent Financial Advisor.

If you have answered YES to some of then perhaps you may even be managing your pension and savings yourself or you may have an advisor already.

Something tells me if you’re still reading this article there are some doubts as to whether you or your existing advisor are optimising your investment strategy?

Here’s 3 further questions to ask yourself or your current advisor:

1. Are your investments matched to your risk profile – have you measured this lately?
2. How do you adjust your investments in challenging times?
3. Can you be certain you will never run out of money in retirement?

Back to your original question – “Is it worth paying for an Independent Financial Advisor (IFA)?

Consider how much worry could it take from you if you did. And what’s the value you can put on that?

And have you an opportunity to make more from your investments over the longer run by paying someone for advice and ongoing fund management. Not to mention the time freed up for more enjoyable activities in your spare time!

It’s what I call the ‘value equation’.

The Value Equation

Where Value is your judgment of the additional value of an independent financial advice service and long-term investment performance divided by the cost of the service.

There will be a point where a reduction in cost affects the quality of the service delivered and lack of care with your investments. You have to consider that if a service seems much cheaper than one you believe you can trust, there are reasons for this.

Have they the quality of staff and expertise to manage your money properly? Excellent staff cost more than average ones. Is their business sustainable and will it give you the high level of personalised service you require with such low fees?

FINANCIAL HEALTH WARNING: Not all advisors are the same!

FACT: The advisors you choose can greatly affect how long your money will last in retirement.

5 Big Questions to ask any advisor – that is anyone you shortlist as a possible advisor:

• Are you able to provide independent financial advice or is your advice restricted?
• Explain your investment process and service proposition
• Will you meet me every six months with full portfolio reviews?
• Will you match my investments to my risk profile?
• Will you ensure we never run out of money by reviewing your cashflow plan every year?

It’s always time well spent considering the value an excellent advisor can add by asking such questions.

And when you’re shopping around advisors it’s worth thinking about the Value Equation.

When it comes to matters which affect your future income and peace of mind there is more to it than cost.

This is where the value equation comes in when comparing advisors.

Interested in finding out more?

Seeking a second opinion on your financial future costs you nothing.

Simply call our friendly team on 0121 355 4455 or drop us an email to

appointments@oaklandswealth.com to arrange a confidential chat.

Oaklands Wealth Management, founded by Helen Blackburn in 2004 advises

clients around the Midlands on retirement planning, pensions & investments.

Her firm holds British Standard BS 8577 for client service & investment process.

Minimum investment is £500,000 (£650,000 for pension transfers).