We are firm believers that everyone deserves to receive financial guidance and we know that everyone will need financial advice at some point in life. We also appreciate that using a Financial Adviser can feel like a big step. However, there are many tangible benefits from a relationship with an adviser.
In this insight we will cover the key benefits a Financial Adviser provides their clients. From suitable asset allocation, setting realistic goals, protecting your loved ones, creating a budget, managing debt, planning for retirement and developing wealth creation strategies.
Research has shown that the alpha of working with a Financial Adviser equates to a 3% net return per year. This research was conducted by vanguard. Whilst Morningstar calculated that a client who engages with a Financial Planner were 1.82% better off per annum. Over the course of an investment period these extra returns can compound into serious investment gains.
By working with us at Wimbledon Wealth we will provide you with clarity on where you are on the journey towards achieving your lifelong goals and dreams.
1 – Bespoke asset allocation
In today’s world many people lack the time or knowledge to be able to assess investment options and cut through the noise to create a suitable portfolio.
We take the time to assess where you are now and where you want to be in the future, whilst finding out if there are any financial transitions on the horizon in the short term.
Once we fully understand your position and what is important to you, we will construct the right investment strategy to achieve healthy long-term results.
2 – An objective perspective on emotionally driven decisions
When it comes to money, we know that emotions can play a significant impact when it comes to investing. Without the right mindset or expertise behavioural biases can get in the way and disrupt an investment journey, especially during periods of market volatility.
As the great investor, Warren Buffett, once said “it’s not timing the market, it is time in the market”.
With a professional adviser by your side, they will be able to coach you on the best course of action during uncertain times.
The last few years highlights Warren Buffett’s point poignantly. If an investor sold down their position at the height of covid in March 2020 they could have crystalised a loss and found it hard to find the ‘right time’ to re-enter the market. By December the market had managed to bounce back and even grow with the S&P gaining 15.6% and the Dow Jones up an impressive 43.7%.
2020 showed the importance of having a long-term perspective and a Financial Adviser would have been there to provide an objective perspective reminding you of the long-term plan and to ignore the distractions.
We are not day traders we are long-term investors.
3 – Cash is not always kind
Holding all your money in cash can have a negative impact on your investment portfolio. Your spending power over time will be eroded by inflation impacting your standard of living in the future.
By maintaining a large amount of your assets in cash can give rise to a situation called ‘cash drag’. If you held $10,000 in cash from 2010 to 2023, the effective purchasing power of that money would be approximately $7,220.22 when considering the impact of inflation. Meaning you could buy 72% of what it could in 2010.
Cash has a position in everyone’s portfolio for liquidity purposes but holding too much cash can mean fewer assets in the future and cause you to miss out on potential growth opportunities.
4 – Protecting your loved ones
Insurance is the cornerstone of any financial plan. A Financial Adviser will help to identify threats to yours and your family’s financial position. With their knowledge and insight, they will empower you to make well-informed decisions and avoid potential pitfalls or gaps in coverage.
Life’s uncertainties can catch us off guard, yet many of us cling to the comforting illusion of invincibility. The stark reality is that 1 in 5 people will face a cancer diagnosis in their lifetime, shattering the naive belief that “it won’t happen to me.” Critical illness insurance isn’t just a safety net; it’s a vital lifeline that can preserve your family’s financial stability when you need it most.
Without it, a serious health crisis could devastate your savings and dramatically alter your loved ones’ quality of life. By securing critical illness coverage now, you’re not just protecting your finances – you’re ensuring that if the unthinkable happens, your focus can remain on recovery rather than mounting bills.
Imagine the peace of mind that comes from being prepared for life’s toughest challenges.
5 – Expert knowledge
Here at Wimbledon Wealth, we have your back. You have access to expert knowledge, skills and the latest research that enables us to create and maintain a tailored plan for your financial journey.
We are at your beck and call and here to make sure a plan is still relevant through regular reviews and, when necessary, available to rebalance an investment strategy should your circumstances change, or the macro-economic climate alter. Beyond investment planning an adviser will guide you up to and through retirement to ensure that you don’t run out of money and enjoy your golden years. We will also provide estate planning solutions to make sure that your wishes are carried out and that your loved ones are looked after when you are no longer around.
Our mantra is that life is worth living and we want you to be able to live your best lives. This is why we take time to know our clients on a personal level, understand what makes them tick and what is truly important to them. Then we create, monitor and review a plan that will help you achieve financial freedom.
We want you to enjoy today knowing that you have a plan in place for tomorrow.