Myths! No, we’re not talking Thor, Zeus, Mars and the gang. Financial planning has been subjected to its own myths over the years. However, just like you shouldn’t believe everything you read on the Internet (swallowing spiders in our sleep, anyone?) a similarly sceptical stance should be applied to the myths surrounding financial planning.
We’ve debunked the top 5 financial planning myths leaving you to make an informed choice on whether financial planning is right for you – like the legend that you are!
Only for the wealthy
This is one of those perpetuating myths and it’s easy to see why it’s stuck around. We’re constantly being told that people’s disposable income is falling and people have increasingly growing demands on their wages. However, it is our experience that those who have to pay more attention to their spending habits can often make the best candidates for financial planning as they’re already careful spenders. No matter our income, we all have goals. Most of us will either have or be planning a family, looking forward to retirement or have a life-goal that better finances would help secure. A good financial planner will help set you on the pathway to achieving these.
Only for the over 50s
Young people today are facing ever-increasing challenges. Those graduating in the coming years face an ever-increasing retirement age with this only expected to increase. It’s easy to see why young people are tempted to adopt the ‘spend now save later’ mentality. However, with retirement being increasingly pushed back and increasing student loan repayments, it’s more important than ever for younger people to start saving for those immediate and long-term life goals. A financial planner will help young people gain perspective, using experience and knowledge to demonstrate how they shouldn’t be deterred from plotting life and financial goals, whatever the economic and political climate. Our free Millennial Toolkit provides some key pieces of advice for those at the beginning of their financial journey.
One size fits all
In the age of the Internet we’re so used to off the peg products. We’re all only one click away from the diet plans and exercise regimes that promise to ‘work for everyone’ and turn us all into Victoria’s Secret’s models. However, not all of us have access to locally sourced organic produce and an abundance of hours to spend pumping the iron. In this case, a personalised programme that takes into considerations our own individual factors is far more likely to be successful- and stuck to! This is exactly the same with a financial plan. Financial planners are like your very own personal trainers. We will get to know you and, through an on-going relationship, guide you with a tailor made and goal driven plan that always puts you and your individual needs at the centre.
It’s easier/ cheaper to just do it myself!
We’ll admit it. We’ve watched enough episodes of Casualty over the years to see the TV consultant perform a tracheotomy and think ‘give us a biro and we’ll have a stab’- literally! Of course, we’d never dream of actually performing one- we’ll leave that to the experts. The same goes for financial planning. A good financial planner is an expert in their field. They are committed to life-long learning and have access to the information and professional tools to give the most informed advice. Above all, we have the one thing so many people are poor in- time! Watching the markets and keeping abreast of developments is our job and we use this information to help and guide clients. This frees up your time to be spent in better ways. For us, financial planning isn’t just about money: it’s about time. Knowing that you have a financial plan developed by professional experts frees up your time and peace of mind, allowing you to spend them on the things that really count. At Magenta we also offer in-person and telephone check ins, meaning managing your finances will always fit seamlessly into your own needs and schedule. What’s more, by encouraging you to take account of your spending and set life and finance goals, financial planning can actually save you money in the long-run.
Now’s not a good time
Do you know what the most wonderful and infuriating thing about life is? It rarely ever turns out how we’d imagine. More a maze than a Romanesque straight road, it’s the twist and turns that can make it both amazing and heartbreakingly cruel. If we all put things off until the ideal time, the truth is, we’d never commit to anything. At Magenta we place a strong emphasis on our relationships with our clients. Whether you come to us at a high point such as a work promotion, a low point, such as divorce or the loss of a loved one or at any point in between, we’ll provide the clarity needed to make sure your finances are looked after whilst your mind is on other things. If you do find yourself facing a divorce, our free Divorce Toolkit provides some key pieces of advice and resources that may be of use.
There we have it. Financial Planning myths- busted!
What’s the most absurd myth you’ve heard about your job or industry? We’d love to hear them! Get in touch to share your tales or, if you wan to discuss how financial planning can work for you, give us a call or e-mail.