What are the Benefits of Hiring a Financial Advisor?

Wealth management continues to represent big business in the UK, with around £552 billion managed by licensed financial firms as discretionary assets as of 2018.

Many companies also offer financial advice to their clients, who are often looking to realise the full value of their wealth and creative optimal income streams through a diverse investment profile.

But what are the core benefits of hiring a financial advisor? Here are some of the most compelling to keep in mind.

#1. You’ll Carry Less Stress

 The world of personal finance and saving is incredibly complex and challenging, while mandating this type of education in UK schools has so far failed to yield dividends.

Maintaining positive financial health is also difficult in adulthood, which is why partnering with a financial advisor and benefitting from their wealth of knowledge and experience can offer such value over time.

So, by liaising with a financial advisor over an extended period of time, you can make more informed financial decisions and make the most of your cash in the short, medium and longer-term.

#2. Achieve a Superior Return on Investment

 According to the numbers, the vast majority of typical investors consistently underperform the markets, with successful traders recording an average yield of 5.15% in the decade ending 2016.

During the same period, major indexes like the S&P 500 and SPY delivered an annualised average return of 6.87%, highlighting the gap between potential returns and eventual results in the global financial marketplace.

However, there’s no doubt that sound financial planning and wealth management can contribute to increased investment returns over time, particularly if you’re patient and willing to commit to managed funds and portfolios for an extended period.

Of course, you’ll still need to make informed decisions off your own bat and leverage existing financial knowledge where possible, but an expert hand can definitely help you to realise the full value of your investments.

#3. Coordinate and Diversify Your Interests

 Diversification and coordination are central to any successful investment portfolio, particularly if you’re to maintain stable profits that are sustainable over time.

The reason for this is simple; as it enables you to strike the delicate balance between risk and reward while ensuring that you’re able to generate returns regardless of the prevailing market and economic conditions.

While it’s possible to diversify without a financial advisor, there are a couple of things to bear in mind here. Firstly, a financial advisor can identify opportunities in the real-time market while pre-empting future changes, introducing financial safeguards as a result.

Similarly, they can prevent you from over-diversifying your interests, which can dilute your potential returns and create the type of imbalance that undermines even the best-laid investment plans.