While the coronavirus pandemic has been devastating for many, a fortunate few have seen an unexpected boost to their lockdown savings. Whether it’s been a reduction in travel, eating out or the non-existent post-work socialising, the reduced spending for some has resulted in a welcome addition to their rainy-day fund. With a new lockdown due to take place this week, you could be tempted to spend your new-found budget, but how to maximise your savings in this difficult time? We’ve spoken with our partner company CMME for some top tips on the benefits of having a financial advisor.
What is a financial advisor and how can they help you?
A financial advisor is someone qualified to give impartial advice about investing personal money to acquire more wealth in the long-term. A common misconception is that you need to have a lot of money to get financial advice or guidance. This isn’t true. Whether you have significant savings or not, a financial advisor will create a tailor-made plan that maximises the income you receive.
What can they help you save for?
The short-term outlay of a financial advisor could significantly help you in the long-term. They can help to ensure that you are not overpaying in tax, investing too much money in the wrong product and ensure that you don’t spend all of your savings too quickly.
When it comes to considering pension investments, research shows that the average UK income in retirement is £19,000 per annum. However, the average for those who work with a financial advisor is £26,000. This means that you could be missing out on an extra 36.8% or as much as £157,000 over the course of a 21-year retirement.
A financial advisor can help decipher the jargon associated with the pension payment process and find a plan that maximises the opportunity to save, based on your current lifestyle.
What about DIY investments?
There is an abundance of advice online that can educate you on how to look after your income, however, while this can save money on fees and avoid discussing your income in-depth, the benefits of having a financial advisor on your side can outweigh a do-it-yourself approach.
A financial advisor has studied and trained to understand the market and all its quirks. Their knowledge and expertise will allow you to see investments that you may well miss if you don’t have the time to follow market trends on a regular basis. Securing the help of a financial advisor means that you won’t have to worry about missing out on any potential investments that could maximise your income.
Speak to an expert today
If you are looking to seek advice, whatever your personal circumstances our partner Contractor Wealth, part of the CMME group, can help you with all your investment queries, pensions and financial wellbeing. They are specialists in financial planning for contractors and freelancers so you can be sure you are working with a company who understands how you work. To organise a free no-obligation consultation, contact your accountant today or visit this page.