How much money do you need to have a financial adviser?

Many people think that having a financial adviser isn’t for them because they don’t have enough money to warrant one. Perhaps they perceive financial advice to be the preserve of the wealthy and that it’s only worth seeking advice if you already have a lot of money in the bank. Our Chartered Financial Planner Michael Hawthorne explains how financial advice can benefit people from all walks of life.

The Advice Gap problem

This perception means that many people fall into what’s often termed the ‘Advice Gap’. Those in the gap are effectively people that need financial advice but don’t believe they have the means (or wealth) to access it. Unfortunately, it’s often people who have less that need greater intervention from a financial adviser, where advice could be more meaningful and valuable.

Regardless of your current wealth, a financial adviser can create a personal roadmap to help you plan for a secure financial future. This could encompass investments, pensions and protection, such as life assurance.

Michael Hawthorne is a Chartered Financial Planner at Amber River True Bearing. He’s met people from all walks of life and in varying financial situations throughout the course of his career. He offers up his years of experience with the following advice for anyone who’s read the first half of this blog and thought ‘that’s me!’.

“I would suggest that anybody with a financial problem who feels they don’t have enough money should get in touch. Amber River True Bearing offers a consultation at our expense and, if financial advice is the right course of action, we’ll be able to explain how you could benefit. If it isn’t right for you, we’ll point you in the direction of where you’ll be able to find the right help. For instance, The Money Advice Service, which gives free guidance on money matters, or the Citizens Advice Bureau.

Most financial advisers have a minimum fee, so we will always carefully consider whether it’s appropriate for you to pay for the advice we provide. For example, if somebody comes to me wishing to set up an investment with £10,000 over five years and they pay, say, an £800 fee, they would need to make £800 in interest just to break even.

So paying for advice in this instance might not be a viable option. However, If somebody is looking to start a pension with £200pm saving over 40 years, the £800 fee is far more cost effective and will benefit the customer in the long term. My recommendation is to take advantage of the initial consultation, get an independent opinion and agree a course of action from there.”

At what point should you get a financial adviser?

Rather than thinking about the amount you have to invest now and whether it’s worth paying for financial advice, it might be worth thinking about changes in your circumstances that could prompt the need for advice. For example:

  • You’ve received a pay rise, pushing you into a higher tax bracket
  • You’ve received a windfall and are looking to use it to make provisions for your future
  • You have a young family, or people who depend on your income, which could mean protection insurance is important.
  • You’ve changed your employer or you’ve become self-employed, resulting in changes to the employer benefits you previously received
  • You’ve accrued over £30,000 in savings
  • You’ve paid off your mortgage and have a higher disposable income to invest in your future
  • You’re married, getting divorced, or remarrying.

If you would like to speak to Michael about any aspect of financial planning, please visit our website or call 01257 260011

Enjoyed this? Read more from Amber River True Bearing

Latest news

1

Lancashire leaders named on King's birthday honours list Simply Doughnuts Export Award

Lancashire leaders named on King's birthday honours list

17 Jun 2024

2

Ribbon cut on Blackpool's £23m tramway extension Blackpool Tram Extension Launch

Ribbon cut on Blackpool's £23m tramway extension

13 Jun 2024

3

Anticipation is the key to fall protection Jon Holt Delta Plus UK

Anticipation is the key to fall protection

17 Jun 2024

4

How to recruit in summer when there’s a decline in job searching Recruiting through summer LBV.jpg.jpg

How to recruit in summer when there’s a decline in job searching

17 Jun 2024

5

What is a Right to Buy purchase and why is it different from other house sales? Right-to-buy-scheme-web.jpg.jpg

What is a Right to Buy purchase and why is it different from other house sales?

17 Jun 2024

Lbv116 Ltb Strip980
Background image for hub sign up block

LBV Hub

Reach 50,000 members of the Lancashire business community

Post your news
Post your events
Post your offers
Company profile
Social reach
Magazine coverage
Sign-up
Events
RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
11 Jun 2024 - 04 Dec 2024

RISE - The Academy for Female Leaders and Managers

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 16:30

Business Networking in Blackburn - BNI Vista
EVENT LISTING SIZING Vista.png.png
LBV Hub Networking
18 Jun 2024

Business Networking in Blackburn - BNI Vista

Hampton by Hilton, 2 Frontier Ave, Blackburn, BB1 3AL

06:45 - 08:30

Business Networking in Chorley - BNI Endeavour
EVENT LISTING SIZING Endeavour.png.png
LBV Hub Networking
18 Jun 2024

Business Networking in Chorley - BNI Endeavour

Oak Royal, Bury Lane, Chorley, PR6 8SW

06:30 - 08:30

Exclusive Free Event - An inspiring morning with Professor Paul McGee, The SUMO Guy
Paul McGee Event
LBV Hub Seminars
19 Jun 2024

Exclusive Free Event - An inspiring morning with Professor Paul McGee, The SUMO Guy

Village Hotel Blackpool , Blackpool , FY3 8LL

08:30 - 13:00

Free 4 Week Growth Ignition Coaching Programme
UCLan Primary logo RKE.png.png
LBV Hub Seminars
19 Jun 2024 - 03 Jul 2024

Free 4 Week Growth Ignition Coaching Programme

Online, Preston, PR1 2HE

12:00 - 13:30

Business Networking in Accrington - BNI Zeus
EVENT LISTING SIZING Zeus.png.png
LBV Hub Networking
19 Jun 2024

Business Networking in Accrington - BNI Zeus

The Mill House, Corn Mill Yard, Accrington, BB5 5HX

06:45 - 08:30

Bold Moves Mastermind - Procrastination to Profitable Pricing
BV Online Course Title pages (1).jpg.jpg
LBV Hub Seminars
19 Jun 2024

Bold Moves Mastermind - Procrastination to Profitable Pricing

Oswaldtwistle Mills Business & Conference Centre, Oswaldtwistle, BB5 0EY

09:30 - 12:30

Business Networking in Preston - BNI Diamond
EVENT LISTING BNI Diamond.png.png
LBV Hub Networking
19 Jun 2024

Business Networking in Preston - BNI Diamond

The Marriot Hotel, Garstang Road, Broughton, PR3 5JB

07:15 - 09:00

Business Networking in Burnley - BNI Kudos
EVENT LISTING BNI Kudos.png.png
LBV Hub Networking
20 Jun 2024

Business Networking in Burnley - BNI Kudos

Prairie Sports Village, Windemere Avenue, Burnley, BB10 2FU

06:45 - 08:30

THE ABSOLUTELY FABULOUS COMEDY DINNER SHOW
AbFab Social Post.jpg.jpg
LBV Hub Social
20 Jun 2024 - 20 Jun 2024

THE ABSOLUTELY FABULOUS COMEDY DINNER SHOW

Crow Wood Hotel & Spa Resort, Burnley, BB12 0RT

18:30 - 23:00

Business Networking in Lancaster - BNI Castle
EVENT LISTING BNI Castle.png.png
LBV Hub Networking
20 Jun 2024

Business Networking in Lancaster - BNI Castle

Vale of Lune RUFC, Powder House Lane, Lancaster, LA1 2TT

06:45 - 08:30

Business Networking in Preston - BNI Brunch
EVENT LISTING SIZING Brunch .png.png
LBV Hub Networking
21 Jun 2024

Business Networking in Preston - BNI Brunch

Samlesbury Preston Hotel, Preston New Road, Preston, PR5 0UL

09:30 - 11:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV116 Online Graphic
Subscribe now

Weekly news bulletin