Financial Advice and my Boiler

Financial Advice and my Boiler

1000 1024 Ian Brewer

There a lot of debate at the moment on whether financial advice is worth paying for?

In many ways, this is subjective depending on whom you’re talking too – which financial adviser should you use – and whether the charges can be gauged as value for money on what is achieved now and what further benefit can be gained further down the line in exchange for ongoing charges.

There are many reasons for taking financial advice. You might be looking for a better return on your investments, wanting pension advice to ensure you have security in retirement or simply trying to avoid financial decisions you may later regret which could prove to be expensive.

While advice can give your finances a major boost, many people are put off by the charges. Others have shunned advice because they find it too intimidating and are left managing their finances themselves, or not at all.

Up Front Charges

The charging model when it comes to getting financial advice is there often a large upfront fee taken by the financial adviser based on the amount you have to invest and then an ongoing fee is charged to give you at least one ongoing review a year.

However, charging a large upfront fee seems to be far too expensive according to a recent poll where 814 people participated.

The Poll revealed

22% would not pay more than £250.00

17% would pay between £250.00 to £500.00

11% would pay between £500.00 and £1,000.00

But what was most interesting of all was that 39% would not take financial advice including when it was making decisions about their retirement options

That leaves about 11% were willing to pay £1,000 plus.

The Financial Advice Gap

There has been a lot of talk about the financial advice gap and the above poll seems to prove this point.

The advice model and the way current services are charged for would appear to show the model is busted for the mass market.

What is the solution?

2 days before New Year’s Eve our boiler which is oil fired decided to let go just like that.

Life often throws a curve ball when you least expect it and you could say the timing of this event was not welcome too but the same thing can happen to your money and that’s when you need financial advice.

Getting the boiler fixed just before News Year Eve I knew this was going to be expensive.

A bit like getting financial advice at the moment.

In my case though help was at hand as I had taken out a policy which covered the boiler if it broke down

It was reassuring to know it covered labor charges and all parts – nothing was excluded and I get a  service every year to make sure my boiler remained in tip-top shape to avoid hopefully the mishap the boiler was now having.

And what did all this cost?

£25pm or £300pa.

A man came out and rescued us and soon replaced the part that had failed and we were back up and running again in no time.

There are many companies that offer similar services as this such as – AA Breakdown for instance which again I am a member.

I have been told the AA has over 16 million members who pay for this peace of mind at an average cost of £25pm if you want all the bells and whistles.

So what is the solution again?

Lower My Charges.com is going to be launching a type of breakdown service for people who need financial advice when they need it and will have access to a financial adviser and ongoing service (At least one review a year) who will help you keep your money on track to achieve your financial dreams and goals.

There will, however, be an exclusion

No upfront fee !!

Now does that sound like a good idea to you?

 

 
 


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