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How a financial advisor can help you find a savings account

When it comes to money and putting it away for your pension, it can be tempting to make savings any which way you can. However, when it comes to pensions and retirement, it can sometimes be prudent to pay for a financial advisor for their expert knowledge. Doing so can help you make the most of your funds and may ultimately leave you with more money in the long run.

When it comes to money and putting it away for your pension, it can be tempting to make savings any which way you can. However, when it comes to pensions and retirement, it can sometimes be prudent to pay for a financial advisor for their expert knowledge. Doing so can help you make the most of your funds and may ultimately leave you with more money in the long run. For, while it is incredibly tempting to look at GoCompare for the best savings accounts on the market at the moment, a financial advisor should be able to find the best savings accounts for you specifically. 

Here, we look at the benefits of using a financial advisor. Listing them may make you realise that the fees they charge are well worth the outlay! As ever, however, it’s essential to consider these benefits regarding your specific circumstances. It could be that these benefits do not apply to you, or they are not a big enough advantage to make paying for a financial advisor's services worthwhile. By and large, though, the expertise a financial advisor can provide you with finding a savings account will be far better than any comparison site.

Benefits of using a financial advisor

The following are the advantages that you may benefit from when using a financial advisor’s services. If you decide to use a financial advisor after reading this article, be sure to turn up to your meeting with them prepared. It will ensure you get the most out of the money you do end up spending for their expertise.

Market knowledge

One of the most significant benefits that a financial advisor has over you is their market knowledge. Some may argue that that market knowledge can be found through Googling savings accounts and using the web for research. However, a financial advisor will not need to Google what savings accounts are currently available to you! They will already know. That knowledge is vital. And, crucially, they will already have weighed up the pros and cons of each savings account. Plus, they will be able to do so quickly with your circumstances and needs in mind. And, if you’re a time-strapped individual, their knowledge could mean that your money gets invested more quickly. It is likely it will be invested more appropriately too.

Tax knowledge

While a financial advisor will not be an accountant (though they can be), they will still likely have a more in-depth knowledge of tax and tax laws. As a result, they will understand the implications of those tax laws on your savings. They will automatically know how to make your savings as tax efficient as possible. Without this in-depth knowledge, you may put yourself at risk by choosing accounts that put you into a higher tax income bracket. Or, you may simply end up paying more tax than you needed.

Financial savings

Knowing the market so well may mean that using a financial advisor saves you money for the investments you do make. Financial advisors know that they have to be useful and worthwhile to hire. As a result, their advice must help you financially in some way. And then, you can put those financial savings to better use. The cumulative effect can make you much better off.

Objective observer

You will usually be the person that knows your financial situation the best. However, sometimes, being too involved in our finances can be to our detriment. It means we cannot view our financial situation objectively and without emotion. A financial advisor will have no problem in being objective and will be able to direct you to savings accounts more efficiently.

It means that unnecessary and unhelpful factors will not sway your decision. For example, choosing savings accounts for children and grandchildren can often be a subject very close to all our hearts. A financial advisor will be able to ensure that feelings aren’t clouding your judgement. Instead, they will simply advise the best savings account for you in that instance.

Practice

Of course, perhaps the best advantage of using a financial advisor is that they implement their market knowledge day in day out. They know how to use that knowledge to optimum effect as a consequence. They will have done so over a breadth of clients. Having a wide range of clients means they have had to implement that knowledge for very different needs and requirements. An advisor will thus be able to make your money work hardest for you. It is what a financial advisor will seek to achieve for every client. And because a financial advisor tries to do that every day, they will be far better placed to do so than a Google search.

Using a financial advisor

So is using a financial advisor worth the cost? Well, the above benefits are there for the majority of people to make use of. However, it is down to personal discretion to decide if those benefits justify the cost. For example, those benefits may not be as significant to a person already working in the finance industry. Such an individual is likely going to have an in-depth knowledge of taxes, savings products and pensions. However, it’s never a bad idea to get another opinion from a person - particularly when it is an independent, objective one.

Using one is, therefore, entirely down to you. However, if you are even a little unsure about where to put your money, it can be a great idea to seek a financial advisor’s services. If anything for the one benefit that we have not mentioned yet and something your own research with a review site cannot give you - and that’s peace of mind. Using a professional to help you choose a savings account can provide you with that, and that is not to be underestimated.

Rachel Lee

Rachel Lee

Having worked at Morgan Stanley and BNYMellon for over 10 years in pensions and investments, Rachel naturally started to move towards investment writing more and more in her day job. Rachel now works as a full-time business and financial writer - drawing from her hands-on experience in the field.
The content on pensiontimes.co.uk is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, consult a licensed financial advisor. Any references to products, offers, rates and services from third parties advertised are served by those third parties and are subject to change. We may have financial relationships with some of the companies mentioned on this website. We strive to write accurate and genuine reviews and articles, and all views and opinions expressed are solely those of the authors