Do investors need the assistance of a financial adviser?

Posted by TEBI on September 7, 2023

Do investors need the assistance of a financial adviser?



Getting Started is our video series aimed at first-time investors, featuring JONATHAN HOLLOW. This time, we ask: do investors really need the assistance of a financial adviser, or can they just go it alone?



In our book, How to Fund the Life You Want, Robin Powell and I argue that almost everyone in the UK will need a financial advisor on some topic at some point in their life. For example, financial advisers are very good at explaining the complexities of the tax and pension system. Or they can help you think about the inheritance implications of particular investment choices.

The key question is whether you really need a financial adviser managing all of your money all of the time. If you can read our book, you can definitely manage a simple portfolio of mainly passive investments, but you might want to outsource the hassle to a financial adviser.

Or you might need what we call a financial bodyguard: someone to help you stop taking rash decisions when markets fall. But the average fee charged by advisers for ongoing money management is 0.8% of the assets they control. For most people, that will feel like a lot of money. In our book, we devote a whole chapter to how to find a really first rate adviser, but we also point out some of the great free information and guidance that you can get that will answer a lot of your questions –questions you might have paid a financial adviser to answer for you.



JONATHAN HOLLOW worked for the UK Government’s Money and Pensions Service and is a writer and commentator on consumer education and protection. He is the co-author, with Robin Powell, of the award-winning book How to Fund the Life You Want, which is published by Bloomsbury.



When markets tumble, what should you do?

Should you invest in actively managed funds?

What’s the difference between active and passive funds?



It’s not essential nowadays to seek professional financial advice before you start to invest, but it is definitely a good idea to do so. We also recommend that everyone has a financial plan.

If you would like us to put you in touch with a financial planner in your area, who shares our evidence-based investment philosophy, just click here and send us your email address, and we’ll see if we can help.


© The Evidence-Based Investor MMXXIII



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