Getting Value for Money from Your Financial Advice
Value for money can be a very subjective area. It’s not always about cost: although, sometimes, low cost equals poor quality, it is occasionally the case that high cost doesn’t equal high quality.
For every purchasing decision we make, our minds calculate value for money based on cost, quality, expectations and previous experience. Often, particularly for lower cost items, these calculations are done instantly in our heads so we don’t have to think too much about them. Otherwise we would never buy anything at all as we constantly try and calculate whether it’s value for money.
But for new areas of expenditure, where the cost is high or we do not have much experience assessing value for money can be much more difficult to understand. This can be the case for financial advice when charges are taken from the product to fund the charge for advice.
That’s because we lack experience and gaining the knowledge to give us that experience is difficult. Costs are not transparent, not easily understood and so can be difficult to compare. In these instances we may either avoid the decision at all or make it on trust, which can sometimes be a good measure but we don’t always know who to trust.