Danny Cox | 25 November 2013

Financial Planning Week, which started yesterday, provides a reminder of the importance of taking advice if you lack the time or confidence to look after your investments. Unfortunately many people have a false impression of financial advice and the benefits it can offer. I’d like to set the record straight – and bust the most common misconceptions.

Myth 1: I’m not wealthy enough for financial advice

Financial advice is now available for those with portfolios of £20,000. Investors with smaller portfolios could consider receiving financial advice by telephone rather than face-to-face. Telephone advisers often have lower overheads than advisers who travel the country or those who need to provide expensive offices for client meetings. This enables them to charge lower fees and makes it cost-effective to offer advice on smaller portfolios.

Myth 2: Financial advice is expensive

The important issue here is value for money. Paying hundreds of pounds to reduce your tax bill by thousands of pounds, or avoiding costly financial mistakes is a price well worth paying. It’s important to not only understand the charges your adviser will make, but also the value they add.

The cost of financial advice has fallen in recent years and is now much more competitive. In all but the more complex situations, investors should pay a fee no higher than 2% of the amount invested for complex advice and 1% is more common.

Myth 3: I can’t have advice on one part of my finances. I have to get involved in a long, complex service

We can provide financial advice on one specific issue, on a holistic basis (covering all aspects of your finances) or any stage in between. You only pay for the advice you need.

We have noticed that in recent years more people:

• Only want financial advice on specific aspects of their finances or at certain events, such as at retirement, or perhaps receiving an inheritance.
• Need some help getting a portfolio started but then go on to manage their own investments.

Myth 4: Advisers only recommend the products which pay the most commission

Since 31 December 2012, financial advisers can no longer receive commission for advice on investing in products. Any potential for commission bias has been removed so investors can be sure their financial adviser is working in their best interests.

HL Financial Practitioners have been fee-based, independent and fully-qualified for over 10 years. This means you can be sure their recommendations are based on an expert assessment of your needs, without bias.

Myth 5: Advice takes too much time

Financial advice doesn’t have to involve long, drawn-out meetings spread over several weeks.

Our advisory service focuses on delivering results in a timely fashion, when it’s convenient for you.

The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments . This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice .