McDonaldsThe Telegraph reported in an article on financial adviser charges recently that the cost of financial advice was potentially going to put people off seeking advice at all.

I think it is an interesting subject, charges for financial advice. On the one hand you can see price and think that paying £1,500 for investing £50,000 (as reported in the article) is a lot, in isolation. On the other hand, you can see value, where you recognise that you are paying for something you would otherwise not be able to do.

Value is an important factor when assessing price. Take McDonald’s (I’m not a fan, I just had to look up the spelling, but they are successful) as an example. People happily pay £5 or £6 for a burger with fries and a drink. If we take the price and look at what we get purely from a quality of ingredients perspective, then it is perhaps expensive. I am guessing I could buy a thin piece of beef or chicken, stick it in a bun with some salad and sauce, and throw in some fries and a drink for less than what McDonald’s charge. I can do it myself, better and cheaper. But people choose not to. Why?

What we can’t do is have it done for us. Have it ready for us whenever we need it, at the right temperature, tasting of the right flavour, in the right place at the right time. In a nutshell, we can’t do what they do. That is value!

An electrician, a plumber, a mechanic, a fitness instructor. They all offer a service that we happily pay for because we know that even though what they do is not rocket science, it is better for us to have an expert to do it. They will avoid those tiny little mistakes here or there that end up costing us. Plus most importantly, they get the job done. They save us time, money and hassle, and they ensure we get what we need when we need it.

A financial adviser is no different. They will save you time, money, and a whole lot of hassle. The other important source of value a really good financial adviser can provide is the fact that they are not you. As an individual we all make emotional, irrational decisions. We do what feels right.

Financial planning, investing, and wealth management strategies should not be based on what feels right. Imagine if your adviser said that to you. Sound decisions should be based on rational decisions that have emotion, greed, and individual preference almost completely removed from the equation.

That is the value a financial adviser can bring.

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Blog by Jaskarn Pawar

Jaskarn Pawar is an experienced and award winning Chartered and Certified Financial Planner. He advises people all over the UK on financial planning and wealth management issues to help them reach solutions to fit their personal needs. You can contact Jaskarn on 01604 211234 or by e-mail on