Advice Matters - The value of having a Wealth Planner

The value of financial advice lies in benefits that are enjoyed through building a long-term relationship. This is where a Wealth Planner really gets to know you, our client. It’s all about understanding your unique situation along with your ambitions and aspirations for your life.

2 min read

We know managing our finances can be stressful, even for the most financially astute of people. That’s why decisions extend well beyond where and how you invest. The intangible mental and fiscal benefits a Wealth Planner will bring to your life are numerous.

Managing cash flow

By actively taking part in the financial planning process and discussing or writing down your financial goals you’re taking the first step towards achieving them. As your life progresses, you will experience events that may result in you considering changes that may be needed to your financial and personal situation.

Being able to discuss these considerations with a Wealth Planner may help you feel more in control of your situation. Creating a budget and managing your cash flow will create more certainty over what money you have left over after usual expenditure and how to make it work for your future.

Tax-efficient investments

Taxes can also substantially impact on the amount of wealth you build and how quickly you build it. A Wealth Planner will work with you to ensure you are making the most appropriate tax-efficient financial decisions by using your annual allowances and tax-efficient investments.

Emotional wellbeing

Professional, regulated financial advice offers so much more than just practical, financial benefits. It also helps to improve your emotional wellbeing by making you feel better about your money and yourself – especially in challenging times. It allows you to plan the life you want to live, with the aim of you achieving your financial ambitions.

Let’s explore what we mean and what it might be able to do for you. Here are five situations you may encounter in your lifetime when professional, regulated financial advice could help you and ensure you avoid making costly mistakes.

Consolidating your pensions

These days it’s common to have multiple pensions from previous jobs, and there are various benefits to consolidating them, such as managing all your money in one place and paying just one set of fees.

However, you could lose out on pension benefits when you transfer funds to a different provider and may also encounter unexpected fees. A Wealth Planner can advise on the most appropriate options for your situation.

Making financial gifts

You might want to help family members by making a financial contribution towards their education or home, or to celebrate a special occasion. But unless you know the complicated rules around Inheritance Tax and gifting, you might leave the recipient with a potential tax bill in the future.

A Wealth Planner will ensure you make tax-efficient financial gifts within the specified limits. They will also assess how much you can afford to give away without causing you financial difficulty.

Leaving assets to loved ones

When you make a Will, you’ll want to ensure that your money, assets, and property go to the intended person. However, if your estate is larger than the IHT threshold, which is known as the nil-rate band or NRB, Inheritance Tax of 40% may be applied, meaning that a large portion could be taken by HMRC. In addition to the NRB is the Residence Nil Rate Band (RNRB), which gives a combined increased allowance. To be eligible for the RNRB you must pass your home or a share of it to your children or grandchildren. This includes stepchildren, adopted children, foster children but not nieces, nephews, or siblings.

You can check the ‘’ pages on the Government website to confirm the thresholds for both the NRB and the RNRB for the relevant tax year.

There may be other exemptions and additional limits to the current threshold in addition to the RNRB which may apply to your situation, and a Wealth Planner will be able to advise you on these.

Starting to invest

Investment always involves an element of risk, but the level of risk involved can vary significantly depending on where you choose to invest. It can be very difficult to assess the level of risk involved in an investment. A Wealth Planner will help to match you with investments that are appropriate for your goals and investment risk.

Significant advice gap

Receiving professional, regulated financial advice does boost confidence and preparedness for retirement. Research from 2021 which was carried out by Aviva showed 62% of advised clients agreed that having a financial adviser definitely prevented them from making significant mistakes. Additionally, 63% of advised respondents agreed having a financial adviser improved their overall well-being, and 69% also agreed that it brought peace of mind1 .

The findings also showed that people who received advice were also more confident, worried less and were better prepared for retirement than those who don’t obtain advice. However, additional research also from 2021 shows that fewer people than ever are taking paid financial advice. One in fourteen people (7%) has paid for advice in the last two years, compared to one in ten in the prior years’ research2.

It’s good to talk

Financial decisions can be difficult to make on your own. And they’re rarely just about you. Either directly or indirectly, they can also affect your partner or family – which can add to the pressure. Speaking to a Wealth Planner really could make all the difference.

Source data:

1 22nd April 2021 | Financial confidence no substitute for good advice| Aviva

2 2021 | The Advice Gap | YouGov

Please note: This article is for general information only and was accurate at the time of writing. Whilst information is considered to be true and correct at the date of publication, changes in circumstances, regulation, and legislation after the time of publication may impact on the accuracy of the article.

The information in this article is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change and tax implications will be based on your individual circumstances.