Reasons to be cheerful

Phil Hendry10/11/2021

(11 overlooked reasons to see an advisor)

Many clients will call their adviser during uncertain times or if they want to talk about a portfolio change.
But there’s more to us than this!
There are many other reasons why.
And some reasons you may not have thought of…

Most major life changes come with financial implications, and your adviser can be an invaluable resource in helping you build and protect your assets.
We’ve also got the expertise to guide you through the stressful moments. Other reasons to visit an advisor come up to, such as:

Such as buying a home.
Saving up for university fees.
Preparing for the shock of wedding costs.

Any time you’re facing a significant life event, it’s important to remember that your financial adviser can help with more than just explaining your annual pension statement. Below are the often-overlooked financial or life situations that you can and should consult us about…


Don’t leave it until it’s too late to get financial advice(!)

Reason #1 – Basic Financial Planning 101

All those school lessons, but the ones they probably did not teach you were financial skills.
Advisers can help you with the very basic building blocks of financial planning, particularly around budgeting and sorting out personal debt.
It’s also helpful to talk to an adviser if you find it harder talking to friends and family about money.

Reason #2 – Sudden Job Loss

A situation that is now more likely to occur, given that we have come through a major pandemic.
A sudden job loss can be a major life event, and knock you back both emotionally and financially. So working with a financial adviser can be beneficial. An adviser can work on the short- and long-term impacts of “emergency” situations with you.
A job loss often sends people into a panic, sometimes triggering all sorts of bizarre financial behaviour. Resist the temptation to withdraw money from that pension pot (which has tax implications) until you’ve spoken to one. Likewise, wait until you’ve spoken to an adviser about that million pound business idea you have.
An adviser can provide advice to help you minimize the impact of these decisions.

Reason #3 – Protect your neck

Business owners – you are vulnerable – there, we said it.
Have you got enough cash to hand and the right bank accounts for your business? Have you got the correct business insurance?
Individuals and families also need to be aware too – how are you going to pass on what’s yours to your loved ones?
Asset protection is something that a lot of people either don’t fully understand or have not discussed before with their advisers.
It’s worth looking at different trusts or business structures, to see which may be more suitable for your needs.

Reason #4 – Divorce

Two of the politer words I’d use to describe some of my ex-partners(!)
Most people are not aware of how impactful a financial adviser can be during a divorce. Divorce can turn things upside-down for both parties financially.
We all know it can be difficult to make good financial decisions during periods of turmoil – ask anyone who purchased a hot tub or a pizza oven during lockdown!
A financial adviser can provide objective guidance and perspective that can help you in both the short & long term.

Reason #5 – Later Life Care Planning

Overlooked because no-one wants to admit that they are getting older or shorter of breath, do they?
We’re all going to live forever, aren’t we?
Like Bella and Edward… ‘Twilight‘ wouldn’t lie to us…surely?
However, we are living longer and hopefully will be in better shape than our parents were. So whilst we’re still of sound mind, it’s important to have a conversation about the potential cost of care. Tax planning, both while you’re working and during retirement, is another key area that gets overlooked.
Otherwise, you could find yourself with a rapidly depleted bank account or selling the family home to cover costs.

Reason #6 – Post-pandemic investing

The pandemic once again showed underlying fears that people have around their money and their feelings of a loss of control.
There was a massive drop when we went into lockdown, and then a steady recovery as we all became a nation of amateur investors.
In fact, the markets have almost recovered to the levels they were before 2019.
Whilst we wait and see if the panic sellers will come back to investing, the rest of us should have a chat with our advisers on protecting investments, so that we can continue to generate an income for the future.

Reason #7 – The Taxman Cometh…

Did you remember the paper deadline for tax self- assessment was on the 31st October?
What’s your excuse this time?
An adviser who gives tax advice can be worth their weight in gold.
Before the NI hike next year, and if your employer uses it, a salary sacrifice scheme will increase your pension contributions and lower your tax bill.
These are things that you should be looking at before the year is over, not in April when you’re filing your taxes.
By then, it’s too late!

Reason #8 – Selling your business

The one area that often costs business owners the most is failing to prepare for capital gains tax before the sale of a business. Often, a client will sell the business and then look for ways to avoid a large capital gains tax bill. Instead, build an exit plan with your adviser before the sale.
Because it is often too late if left until the last minute.

Reason #9 – Ch-ch-changes

Do you have children?
Planning to have children?
Suddenly found out you’re now a parent?
Are you married or planning to get married?
Are you planning on moving house? Need to leave the country and do a runner somewhere?
Has a mysterious great-aunt died and left you a surprise inheritance?
Changes, be they planned or a complete surprise, are excellent reasons to speak with your financial adviser, as they can affect your financial plans.

Reason #10 – The joys of insurance

You’d be surprised how many people ignore insurance, and their reasons why…
There’s a tendency to dismiss it as another product to be purchased, but for example, when used properly, life insurance can be a powerful tool in your overall financial plan. Having the right policy can be the difference in getting your family through what will be a difficult time for them.
A good financial advisers should know some good insurance brokers. They can advise and connect clients, helping them best prepare for and manage their health insurance into retirement. These services go hand-in-hand when preparing for the next life stage.

Reason #11 – Financial freedom

It’s not what you make, it’s what you keep that matters

An adviser can help you decide what financial freedom means to you and help chart a path of saving and investing to enable them to achieve their goals. Estate and tax planning are areas where advisers can be of great help.

Think broadly about what is important to you and what your priorities are, and then talk openly with your adviser about these goals. A few examples of topics you can engage on with your adviser include providing financial gifts for your children, taking care of your elderly parents, saving money for retirement and building enough savings to enable you to donate to a charity. Figuring out your reasons for why you have your money and what to do with it will bring clarity.