Seven reasons to get a financial advisor in 2024

The need for advice is probably never more apparent than with the recent cost of living crisis. It may be receding slightly, but with the threat of recession and during tough times, financial advice often proves most necessary.

1. Peace of mind 

Many of us have sleepless nights caused by financial and job security worries and uncertainty.

Uncertalnty has always been a defining characteristic in 2023, and we can expect more of the same in 2024.

Financial uncertainty is a part of life, and it's essential to have a proactive approach to manage it effectively. Indeed, one of the significant benefits of seeing a financial advisor is the peace of mind they can provide.

A financial advisor by your side will give you the confidence that whatever happens, your financial future will be taken care of. And that’s exactly what good financial advice can provide.

Did you know that unless a financial advisor can improve your current situation, their advice would be to do nothing? So, there is no harm in getting financial advice. It's a win-win situation.

2. Inflation 

Core CPI (excluding energy, food, alcohol, and tobacco) rose by 6.9% in the 12 months to July 2023.

With this in mind and the risk of further inflation heading into 2024, you must find an investment strategy to keep up with inflation.

This is where financial advice can prove helpful.

Financial advisors can indeed help you address and manage the effects of inflation on your financial situation.

3. You're nearing retirement 

Nearing retirement is a significant life transition. There is an array of options available that require careful consideration, such as the flexibility of income drawdowns, the stability of annuity purchase, or a combination of the two. The decisions you make will affect the rest of your life.

There's no right or wrong answer here; everyone's situation is unique. It's about selecting what's suitable for you.

Using a regulated financial advisor at this critical age can help ensure a financially secure and fulfilling retirement. A financial advisor will help you decide which route to take and how to draw down your tax-free cash.

4. Fix your mortgage rate 

According to research carried out by the Resolution Foundation, they estimate an increase of £2,900 in annual mortgage payments in 2024.

If your fixed rate deal ends in 2024, this could place significant pressure on your household budget, given that your mortgage is possibly your largest monthly outgoing. Getting mortgage advice can help.

A regulated advisor will scan the whole market to find the best mortgage deal for you at the right price.

Since 2016, we have processed 25,000 mortgage enquiries.

5. Major life events 

Major life events are significant and often transformative experiences that can have a profound impact on a person's life, for the better or for the worse. For example, being a parent is the single biggest event, but it can also be the most expensive, with schooling and savings plans now added to your list.

Receiving an inheritance can have a substantial financial impact, but it may require careful financial planning and decision-making as these events are normally once in a lifetime.

When life changes in a major way, a financial advisor can help ensure that your goals remain on track. And it may even encourage you to set new, more ambitious goals.

6. The cost of delay 

The best time to start saving for your financial future is today. Delaying by just a few years, through the power of compound interest, could cost you dearly down the line.

To illustrate the cost of delay, consider two hypothetical scenarios:

Early Starter: Person A starts saving for retirement at age 25 and consistently invests a set amount each month until retirement at age 65.

Late Starter: Person B delays saving for retirement until age 35 and then starts investing the same amount per month as Person A until age 65.

Assuming the same rate of return on their investments, Person A is likely to have a significantly larger retirement savings balance than Person B, even though both contributed the same amount each month. This is due to the extra years of compounding that Person A enjoyed.

In summary, the cost of delayed saving can be substantial in terms of needing to save more money, potentially having less in retirement, and missing out on the benefits of compounding. Getting financial advice can help you calculate how much you can afford so that you can start making headway towards your financial goals, saving you money down the line.

7. Mapping your future 

By working with a financial advisor, you can start by defining your short-term and long-term goals. These can both include financial objectives and lifestyle preferences.

It is no different from a sportsperson using a coach to reach the top of their profession, or using a fitness coach to lose weight.

 

Let Regulated Advice match you with a financial advisor for expert advice.