Value of Advice

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There is usually a cost associated with taking financial advice and investing capital. However, this should be compared to the alternative choice – the cost of doing nothing.

A typical savings rate of 0.5% per annum, when paired with an inflation rate of 3.0% per annum as an example, yields an erosion of value in real terms of 2.50% per annum. An initial investment of £50,000 would effectively be worth £38,816.48 after a 10 year period, resulting in a real compounded loss of £11,183.52.

The world of Investments and Pensions is vast and often complicated and the cost of doing the wrong thing can often be far greater than doing nothing at all.  People who are just about to retire have many options, some of which can’t be changed if hindsight later proves that the wrong option was selected.  The cost over a long retirement can be significant, which is why we believe that the correct advice at the point of retirement is so important.  The monetary cost of the advice at outset can pale into insignificance when compared to the long term implications of making the wrong choices.

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