Why we shouldn’t overlook the value of advice

5 min read 17 Oct 22

If you're ill, you go to the doctors, if you're moving house you use a solicitor. We seek out experts for important decisions because that’s their job – to have the knowledge that we don’t. But if we need financial advice, shouldn’t we ask for that too?

Our life savings, our pension, and how we support ourselves and our families financially are huge fundamental decisions and impact all aspects of our lives. And yet when it comes to our money there seems to be a nervousness or mistrust in getting advice from experts.

If we need financial advice, why don't we ask for it?

Is it because as a nation we generally don’t like discussing money? Are we put off by the myths that surround advice – for example you ‘have to be rich', 'it’s too expensive', 'or it’s not worth it?' If you’ve ever thought any of these things, ask yourself if these thoughts are based on facts or ’just what people say’?

There are probably many factors that put people off getting advice, but given that we all need money to support ourselves, you could potentially be much better off with advice from the experts. Isn’t it at least worth exploring?

Over 40,000 reasons to get financial advice

A study by International Longevity Centre UK (ILC-UK) shows just what a positive difference advice can make. It also shows that advice is for everyone and not just the ‘rich’.

The ILC-UK research looked at two groups of people to see if they were better off with or without advice. The first group were ‘affluent’ and the second group considered themselves as ‘just getting by’.

The study was carried out over a number of years to get an extensive view of people's finances and measure the impact longer term. The results clearly came down on the side of advice. Those who took financial advice in both groups ended up with an average increase in their wealth – over £40,000 more than those that didn't take advice.

As we all know, nothing is certain. Even with an experts' help, the value of any investment can go down as well as up and you may not get back the amount you put in. But what have you got to lose by exploring your options?

Does financial advice really make a difference?

There's lots of research to show that advice works and, adds real value to people’s financial circumstances in the long run.

We’re generally not programmed to think long term, it can be hard enough budgeting each month, let alone looking into the future and working out how much money you’ll need in 20 or 30 years to maintain your lifestyle. So back to the opening line – we seek experts for important decisions as that’s their job – to have the knowledge that we don’t.

If you’d like to take the next step and find an adviser that’s right for you and your circumstances you can visit a financial adviser search website like www.unbiased.co.uk or www.vouchedfor.co.uk

MoneyHelper also provides details on how to obtain financial advice on its website. They have a free online tool ‘Money Navigator’ which is designed to help you navigate your finances, such as in the wake of COVID-19, and to avoid financial issues worsening in future.

You can find more information about financial advice and a list of other useful contacts here.

Please bear in mind that M&G Investments are unable to give financial advice. If you are unsure about the suitability of your investment, speak to your financial adviser. The views expressed here should not be taken as a recommendation, advice or forecast.

The value of any fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise and you may get back less than you originally invested.

By M&G Investments

The views expressed here should not be taken as a recommendation, advice or forecast.

The value and income from any fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise. There is no guarantee that any fund will achieve its objective and you may get back less than you originally invested. 

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