Why people work with a financial planner for the emotional benefits
23/08/2023When you think about financial advice and planning, the first element that might come to mind is your money.
Whether it’s savings, investments, or your pension, you might assume that the reason to work with a professional is for them to use their knowledge and experience so you can manage your wealth more effectively.
Yet, according to figures published in Professional Adviser, 60% of advised clients picked an emotional reason for working with an adviser. That compares to 40% who picked a financial reason.
The fact that the majority of these individuals are influenced by emotional factors in choosing an adviser shows something fundamental about financial planning: much of the value is in confidence and peace of mind for the future, rather than just investment returns alone.
So, find out more about the emotional benefits of working with an adviser, and how working with us at Douglas White Financial Planning (DWFP) means you can be reassured that you’ll be able to live the lifestyle you want.
There are various emotional considerations tied in with your money
Money can often be perceived as a cold and unemotional subject. Yet actually, feelings and emotions are very much tied up with your wealth.
First and foremost, your money is what allows you to live your lifestyle. As a result, knowing that your income exceeds your expenditure and that you are financially secure can offer immense peace of mind.
Armed with this knowledge, you can confidently live your life without having to worry that you’re going to run out of money.
This extends to the reassurance you may receive from having a professional by your side, particularly during periods of uncertainty or volatility.
For example, investment markets have fluctuated greatly over the course of the past three years. From the March 2020 crash at the height of Covid-19 lockdowns, to Russia’s invasion of Ukraine and the global supply chain issues this caused, markets have moved up and down significantly.
Of course, the key here is often to sit tight and stick to your strategy. That said, this is often easier said than done, and it can be tempting to react with knee-jerk decisions that can harm your long-term financial health.
In these periods, having a financial planner can be invaluable. Knowing that you have a trusted expert with a handle on your money, and who can manage your wealth during tumultuous periods, can alleviate your worries and give you confidence that your finances are being suitably looked after.
These factors no doubt go some way in explaining why most advised clients feel the emotional benefits more strongly than the financial side.
Aspects such as investment returns and tax efficiency are certainly important. Yet, advised clients say they don’t value these as much as the peace of mind they gain from knowing they are, and will continue to be, financially secure.
Our DWFP internal survey results paint a similar picture
When we read the data showing how important emotional factors are to people when managing their wealth, we weren’t surprised at all. In 2021, we ran our own survey of DWFP clients, and found similar results.
The graphic below shows the main areas of discussion where our clients felt we added the most value:
As you can see, while some of these points revolve around financial issues, the primary concern that both not-yet-retired and retired clients had was having enough money to live their preferred lifestyles now and in the future.
This is exactly what the Professional Adviser data shows. While your money is what allows you to do it, the truly important part is in knowing that you’ll be able to live the kind of lifestyle you want.
Ultimately, we see our role as helping our clients to spend their money.
Throughout your working life, the focus is on spending your money on your safety and security, knowing that you’re:
- Able to live your lifestyle now.
- Saving enough for the future so you can achieve your goals in retirement.
- Sufficiently protected, should the worst happen.
Meanwhile, this shifts in retirement to spending your money so you can reach your life goals.
Crucially, by working with us, you’re able to do so confidently, without the fear that you’re going to run out.
So, by working with a planner, you are looking after yourself both emotionally and financially.
We can help your family and friends to achieve their life goals
As a client of DWFP, you’ll know the approach we take in ensuring that you’re on track to achieve your goals with your wealth.
If you’ve found it to be of particular use, we’d also encourage you to let your friends and family know.
In our 2021 survey, nearly 99% of clients said they would recommend us to friends and family – and 38% even did so – because they know that we’ll take care of their loved ones, just as we have for them.
So, please do let those around you know about the value that advice and planning can add. That way, they can have the same confidence to spend their money and live their lives however they choose.
Get in touch.
If you’d like to find out more about how you can achieve peace of mind by working with a financial planner, please do get in touch with us.
And, if you have family, friends, or colleagues who might benefit from speaking to us, please do let them know how we’ve helped you. We’d be more than happy to speak to them.
Email info@douglaswhiteltd.com or call 0151 345 6828 to find out more today.
Please note:
This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.
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