4 important ways that young people can really benefit from seeking professional financial advice

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4 important ways that young people can really benefit from seeking professional financial advice

Where do you get your financial tips and advice from? If it’s from social media, you’re not alone. New research published by MoneyAge, shows that under-25s are three times more likely to take financial advice from Instagram and TikTok than from a professional. As you might imagine, this can be very risky as the quality of advice on social media can be somewhat variable! If you want to build your wealth and create long-term security, working with a financial planner can be crucial. Here are four ways that seeking professional advice can benefit you.

1. A financial planner can help you build financial resilience

In your early working life, you may be less financially secure since you haven’t had time to build up your wealth. This can mean that when you encounter a short-term disruption, such as being made redundant, it can have a significant impact on your life. Working with a financial planner can help you to build greater financial stability. For example, they may recommend that you set up an emergency fund so you can absorb any unexpected shocks. Typically, most experts recommend that this fund should contain enough to cover three to six months’ worth of expenses. This can help to ensure that if you ever lost your source of income, you could continue to pay your bills while you get back on your feet. However, if you are self-employed or work in a field that is particularly at risk, then you may want to consider keeping a larger fund.

2. A financial planner can help you to find the right protection for your needs

One of the major lessons that the pandemic has taught us is that the unexpected can happen at any time. But while you can’t predict what the future may hold, you can still prepare for it. For example, have you ever wondered whether your loved ones would be able to get by if you suddenly passed away? If you’re the main or only earner in your household, your unexpected death could mean that your family would struggle to pay their bills. And what if you were unable to work for an extended period due to ill health? Could you continue to pay your mortgage or rent – particularly if you’re self-employed? If not, you might want to consider putting the right safety net in place. This is where financial protection could help you, giving you greater peace of mind to know that you can overcome any unexpected issues. If you aren’t sure which type of cover is right for you, working with a financial planner can give you useful guidance.

3. A financial planner can help you to make informed decisions when investing

In recent months, there has been a significant increase in the number of young people getting involved with investing. However, figures published by FTAdviser show that more than half of 18-34-year-old investors are more risk-averse than before the pandemic. While this is understandable, given the fact that the pandemic has created an atmosphere of uncertainty, being too cautious when it comes to investing can have significant consequences. Investing early can allow you to benefit more from compound growth and it can give you many years for your money to potentially grow in value. Being too risk-averse can mean that you could see lower returns, which could affect your progress towards your long-term goals. Seeking professional financial advice can give you a greater sense of control over your investment decisions and help you feel more confident in the level of risk that you expose your wealth to.

4. A financial planner can help you to plan for a comfortable retirement

When you’re young, retirement can seem a long way away. However, the sooner you start making contributions to your pension, the easier it is to save enough for a comfortable lifestyle. Working with a financial planner can help you to build the necessary wealth so that when the time comes for you to retire, you can enjoy it to the fullest. One of the main benefits of saving early is that not only do you have longer to make contributions, but you can benefit from compound interest for longer too. This means that your monthly contributions will be lower than if you started later. Working with a planner can help you to save for retirement in the most effective way possible, helping you to prepare for the future with confidence.

Get in touch

If you want to know more about how working with a professional can help you improve your financial wellbeing, we can help. Email us at office@verve-financial.com or call 0330 320 5048.

Please note:

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances. A pension is a long-term investment. The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Your pension income could also be affected by the interest rates at the time you take your benefits.  

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