What’s the difference when you’re making a financial plan?
When you’re making decisions, cost might be an important factor, but value could be just as crucial. Balancing cost and value in your financial plan could help you get more out of your money.
How to measure the value of an item or service
Let’s say you have a lump sum that you’d like to invest through a fund. A fund that has a low management fee might be attractive, but if the risk profile doesn’t align with your investment strategy, it may be of low value to you. Or a higher cost could be worthwhile if the fund may deliver higher returns over your investment time frame.
So, balancing cost and value could help your money go further and ensure your decisions align with your financial plan.
Financial planning could add value by boosting your finances and wellbeing
Value is important when assessing the benefits of financial planning as well.
Many people seeking a financial planner do so because they want to understand how to grow their wealth and ensure they’re on track to reach long-term goals.
The initial cost of seeking advice could be returned many times over when you look at the long-term benefits. Additionally, Studies have revealed one of the key reasons clients use a financial planner is the peace of mind it provides alongside the time saved by having someone manage your finances so you can focus on what’s most important to you.
If you would like a review of your pensions and investments and whether you are on track to achieve your financial goals, please contact Perennial Wealth for a free consultation. Call 0117 959 6499; email info@perennialwealth.co.uk.
