Seven Great Reasons to Take Financial Advice in 2023
The increasing cost of living has brought to the forefront the importance of seeking advice when making significant financial decisions. In 2023, the need for financial advice has never been more crucial. Here are seven compelling reasons why:
- Inflation. Although inflation rates may be slightly easing, it remains a significant threat to your financial stability. Despite rising interest rates, they still fall short of inflation rates, making it essential to find an investment strategy that preserves and grows the value of your money over the long-term. Financial advice can prove invaluable in helping you navigate inflation by understanding your investment goals, risk tolerance, and capacity for loss, and recommending a suitable plan tailored to your needs.
- Major life events. Significant life events often bring about significant financial changes. For instance, a promotion at work may increase your income, enabling you to save more or afford a larger home. Conversely, it could also push you into a higher tax bracket. Additionally, becoming a parent brings joy but also additional expenses, such as childcare and children’s savings plans. During such transformative times, financial advice can help ensure that your financial goals remain on track, and it may even inspire you to set more ambitious objectives.
- Tax rises. With tax increases now a relaity, everyone will need to make financial sacrifices. This news, combined with the strain of rising prices, can be disheartening. However, financial advisers can assist in tax planning and mitigation, optimising your financial affairs, protecting business profits, and safeguarding your family’s inheritance. Expert advice can help you keep more money in your pocket and less in the hands of tax authorities.
- Approaching retirement. Making decisions about your retirement income requires careful consideration. Whether you opt for guaranteed income products like annuities or the flexibility of income drawdown, the choices you make will have a lasting impact. Selecting the wrong approach can be costly, as annuities cannot be changed once purchased, and drawdown could lead to running out of funds prematurely. Given the significance of these decisions, seeking advice from qualified professionals becomes crucial, especially when it comes to consolidating pensions and maximising tax benefits.
- The cost of delay. The best time to start saving for your financial future is now. Delaying even a few years can result in substantial financial losses down the line. This phenomenon, known as ‘the cost of delay’, means that the longer you wait to save, the more challenging it becomes to achieve your goals. Even small savings can accumulate over time, and a financial adviser can help you calculate how much you can afford to save, enabling you to make progress towards your financial objectives and save money in the long run.
- Peace of mind. Money concerns often lead to sleepless nights, making financial worries a leading cause of stress. Uncertainty about the future can be even more distressing than knowing something bad is guaranteed to happen. Given the prevailing uncertainty and the impact it can have on your finances, achieving financial peace of mind is paramount. Financial advice can provide the confidence that your future will be secure, regardless of what lies ahead.
- Mapping out your financial future. Crafting financial goals may seem straightforward, but the real challenge lies in formulating a comprehensive plan and maintaining the discipline to follow through. This applies whether you’re aiming for short-term objectives like establishing a financial cushion or long-term goals such as securing a comfortable retirement. If you find yourself in need of assistance in developing a solid plan, rest assured that you’re not alone. Just as professional athletes rely on sports and fitness coaches to achieve their objectives, seeking advice when it comes to financial planning is a common practice. A qualified adviser will take the time to understand your life aspirations, devise a tailored plan, and consistently review it to ensure it remains on course, regardless of the challenges life may present.
If you would like to talk about any of the issues in this article or need more general help with your finances, please get in touch with us.
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Disclaimer
The content of this article is for information purposes only and does not constitute a personal financial recommendation. You should always speak to a regulated financial planner before taking financial advice. This article is intended for UK residents only. All information correct at time of publication.
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