1 – Only for the rich
Not all of us have a Rolex or a holiday home in the south of France, but most of us have money, so why is it that financial advice is seemingly reserved for those that do have those luxury items?
The answer is that this is a stereotype. Most of our clients at James Tricketts are ordinary people like yourself who wish to make the most of what money they do have. There is no requirement to already have boat loads of cash to receive financial advice and this stereotype is hindering many from reaching their full financial potential.
2 – I don’t need Life Insurance
However morbid it may be to think about, we are human, we get ill and can die as a result. We too often hear that Life Insurance is too expensive and not necessary, or that its morose to think about someone dying. But the reality for many people out there is should the unexpected occur and they die or become seriously ill, their families would simply not be able to cope financially and an already harrowing situation would be compounded by leaving themselves unprotected.
Despite this many are still not convinced it is worth the money.
If you play the lottery think of it like this. Your odds of winning the jackpot on the lottery are 45,057,474 to 1* , your chance of dying from coronary heart disease is 1 in 7 for men and 1 in 12** for women and developing some form of cancer is 2 to 1*** .
3 – Its too early to plan for the future
Within the past 50 years massive change has occurred which is leading a generation towards a pension crisis. People are living longer and generally saving less for their retirement, which leaves many to either carry on working into your seventies or retire on a meagre state pension which for the 2018/19 Tax Year stands as £164.35 per week.
If you want to aim for financial independence in you 60’s, don’t wait until you are 40 to start saving.
4 – No need, my finances are not complicated
Like my first point, many people are of the belief that you need millions tied up in stocks and property to warrant receiving advice, but the truth is that most people could improve their financial situation by taking well informed expert advice.
5 – I don’t trust Financial Advisers
The world of finance is of course no stranger to scandals. But thanks to significant increases in industry standards and practices there are higher minimum levels of adviser qualification, commission payments have been removed and there is a greater transparency of charges which have all resulted in the provision of better-quality advice.
While not all advisers are cut from the same cloth, they should all be registered on the Financial Conduct Authority’s Register (the financial services watchdog). You can check if an adviser is registered on https://register.fca.org.uk/.
Sources: *- Lottery.co.uk – February 2019
**- The British Heart Foundation – November 2018
***- Cancer Research UK – February 2019
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