The value of financial advice

Lifestyle Financial Planning bridges the gap between your money and what you want to achieve in your life by aligning your financial plan with your life goals and values. Most importantly, it is centred on you, rather than on your money.

There are times in life when the advice of an expert, who has the knowledge and experience to help you with your financial challenges and achieve your goals, is invaluable.

Lifestyle Financial Planning is often seen as something for the super-rich, but we know that isn’t the case. It can add value, both tangibly and intangibly, to many different people from all walks of life.

Research has shown that people who take financial advice are better off. ‘The Value of Financial Advice’ report written by the International Longevity Centre – UK (ILC-UK) in 2017 showed that people who took advice had up to £43,245 more in liquid assets compared to those who didn’t. Furthermore, the report also found that 90% of people were satisfied with the advice they received.

Meanwhile a study by Vanguard quantifies the value added to a client’s financial position by taking financial advice. The research starts by defining Adviser’s Alpha as the difference between the return that investors might achieve with an adviser and that which they might have achieved on their own. It then sets out seven key areas where advisers add value before estimating values for each area, arriving at a total Adviser’s Alpha figure of around 3% per annum. This added value can be attributed broadly equally between tangible and intangible benefits.

To put it another way, a typical Providus client has £250,000 invested; therefore, if our advice adds 3% per year, that is the equivalent of £7,500; well in excess of our fees.