WE SCOTS can be a cynical bunch at times and this is especially true when it comes to seeking financial advice.
Many people view financial planning with a level of scepticism and even distrust, asking “what’s in it for the guy selling me these financial products?” Fortunately, the new rules for financial advice mean that all advisers and financial planners will now need to agree a transparent charge for their advice with the end client.
This should remove the concern that advice is being influenced by commission and prompt more Scots to seek proper professional advice.
The fact that four out of five people worry about money, as YouGov research for Financial Planning Week reveals, shows how much work there is to do. The good news is that most of these people probably don’t need to worry at all. Seeking professional advice is an important first step. Just consulting a financial planner is often enough to put their mind at rest, as the saying goes, “a problem shared is a problem halved”.
The biggest problem where people aren’t planning is that they don’t know if they are going to be OK or not. Often, people find that carrying out a detailed analysis of their spending and their income as part of a comprehensive financial plan lifts a huge burden from their shoulders. In some cases, even accepting that there is a problem is enough to let people take simple steps to sort it. It is particularly encouraging to see that a far higher proportion of Scots than the rest of the UK seem prepared to “cut their cloth accordingly” when presented with the facts.
It is important to take whatever action is required as early as possible and, above all, to avoid comfort spending over Christmas, which will only make any underlying problems worse.
• Alan Dick is principal of Forty Two Wealth Management in Glasgow and vice-president of the Institute of Financial Planning. www.financialplanning.org.uk
