Financial planning isn’t something you can do once and then forget all about it. So when choosing an adviser, you need to find someone you’re comfortable having a long-term working relationship with.
As well as keeping a close eye on how your investments are performing, there are several things a good adviser will do for you on an on-going basis.
https://youtu.be/B8mV6oBexKI
One of the most important of these is rebalancing your portfolio to the appropriate asset allocation. Because different assets perform differently, the initial weighting will drift over time. As equities outperform bonds over the long term, a portfolio will generally become more risky. To control risk, perhaps once or twice a year, your adviser will restore the original balance of your portfolio.
He or she will also have to ensure that you aren’t paying more in tax than you need to, by carefully allocating assets between taxable and tax-advantaged accounts. Once you retire, your adviser will ensure that you spend your money in a tax-efficient way.
And remember, life rarely turns out exactly as expected. Your circumstances and goals may well change over time, and if they do, you’ll be grateful to have a trusted adviser to adjust your plan accordingly.
This video is the fourth in a five-part series of videos called The Value of Advice, made by Regis Media, the producer and sponsor of The Evidence-Based Investor. The videos are intended for use by advisory firms to help them communicate their worth to clients and prospective clients.
If you’re an adviser, and you would like your own version of the series, in your firm’s branding and carrying your contact details, and perhaps a call-to-action and disclaimer, please get in touch with Sam Willet at s.willet@regismedia.com or Christina Waider at christina@regismedia.com. Alternatively you can call us on +44 (0)121 285 2585.
The Value of Advice is one of three pre-produced video series currently available to advisers, the others being Six Steps to Successful Investing and Evidence-Based Investing Insights. All three series have been tailored to different markets — principally the UK, Ireland, the US, Canada, Australia and New Zealand. They are also available in Dutch and in German.
Previously:
Part 1 – Asset Allocation
Part 2 – Cost Control
NEXT TIME: The final way in which an adviser an adviser adds value — behavioural coaching
Robin is a journalist and campaigner for positive change in global investing. He runs Regis Media, a niche provider of content marketing for financial advice firms with an evidence-based investment philosophy. He also works as a consultant to other disruptive firms in the investing sector.
