5 Reasons to hire a financial planner

I am often perplexed by the perception of financial planners in the media.  If we were to be led by them then my job would be to show you how to invest your money to outperform the market, when in reality even the best money managers in the world cannot even do that.


The media seem to gloss over the fact that everyone needs to know that that they will have enough money to live off in retirement, how they can generate income from their money and most importantly of all, at the moment, how they can reduce their tax liabilities in Italy.

So my best 5 reasons to hire a financial planner are as follows:

1.  To press you to answer questions you don't want asked
For example, how do you intend of taking care of your aging parents if you have to, is your will up to date, how long do you think your money will last in retirement if you leave it in cash, if your partner dies where will that leave you financially?   These are the types of questions that are often too uncomfortable to ask ourselves.

2. Put a financial plan together. 
I am not sure who said it, but one of my favourite quotes is: if you fail to plan, you plan to fail.  Very few people create a financial plan on their own.  It does take time and it can be a difficult process.

3.  Identify risks in your finances that you might look right past
Are you investing for capital growth, when you are looking to generate income?, are you too overweight in more risky investments?,  are you paying too much tax?, are you speculating too much based on your age and your personal risk profile?  Are you paying too much for currency transfers?

4.  Talk you through market volatility. 
Most people would energetically claim they don't need this.  However when a stock market falls 35% in any one year, it is enough to prompt the most hardened investors into picking up the phone and asking for advise.    It is difficult to project a forward image of ourselves as being scared or nervous, and our recollection of past pain can fade over time (just ask any woman who has been through childbirth more than once), but another voice than yours during tough markets can be invaluable.

5.  Identify your biases
This is one of the biggest reasons to hire a financial planner.  Most people don;t think they have any biases.  However, one big one is that most women tend to be more cautious investors than men. That is neither god nor bad in itself but given the fact that most women, generally speaking, earn less than men in their lifetimes and live longer, then it is questionable whether women could tolerate  more investment risk.

OK, financial planners don't work for free.  But, if we can provide the above services and in a timely manner then the benefits far outweigh the costs.   (That is taking into consideration that a financial planner is writing this article).

If you would like more information on how we might be able to help you reduce your tax liabilities in Italy,  design a financial plan for income and family security, and/or create a personalised portfolio just for you then you can contact me on gareth.horsfall@spectrum-ifa.com or call me on +39 3336492356