We live in an interconnected world where people are inclined towards self help and “googling it”.

Instant information about seemingly everything is seemingly available. Not only is there information

– there is too much of it. Often the problem – like with many “ Covid “comments” - is that we don’t

know whether they are “official” or “trustworthy”- or fake news.

But Covid aside, when it comes to other things – like what we buy or invest in , are those resources

sufficient for me to be able to act on the information I collect? And, because as human beings we

love to receive information that is “insider” – as in not generally known – but which information we

hope puts us in a better position than someone who doesn’t have it – it’s not surprising that most

financial scams – like Madoff – rely on the “hot tip” route to wreak ultimate financial ruin for those

who follow the tip.

And , as we all know, we live in a World where people love to differentiate themselves from others

– not too much to avoid group displeasure – but sufficiently. So most of us would feel good about

owning an item which is “a one off”. It could be anything. If we buy it on the open market – we may ,

or may not , come with some kind of guarantee about its quality or authenticity. If, however, we

subsequently find out it’s not “the real thing” or is in some other way deficient , then we may or may

be at a literal or proverbial loss.

So if you are contemplating following the above self-help route before you finalise any course of

action – do a little test. Run your ideas or prospective purchases or plans past an expert in that field.

By way of a personal example, I love watches. I read about them on and offline. Seldom a day goes

by when I don’t spend a few minutes or longer picking up information about them – and especially

prospective purchases-or sales. I have looked at more watch auction catalogues than I can

remember. I have asked for condition reports and pictures. I have studied the Houses and I know

who the makers really are – not what is recorded on the dial. I have a friend who I do business with

on this front – who is a watchmaker. He has saved and made me lots of money.

And the reason is – he knows more than any resource I can access and he, in turn, has access to

experts who I cannot access – neither online nor directly. And I am sure his colleagues could do the

same. He knows me – what I like – and what I should or should not buy. He does not waste my time

– but his answers are telling in every instance.

So, what about financial planners and their role and how can they assist you?

The analogy above is really quite simple.

Financial Planners do this stuff for a living. They do not “sell” things – they provide advice. That is

what you pay for. And its more than that. Financial Coaching is what most provide. You and your

approach to money – they will find out and remember the key drivers that will affect you( as well as

your family) – and how you will respond to various options.

Perhaps, most importantly, it is what financial planners tell you not to do that is at the top of the list

of benefits they bring.

Vanguard – the index managers – did an analysis in 2019 of their advice teams – and highlighted

their benefit to clients in terms of what was seen as “an increased return for the client using a

financial planner”. It came in at 1.5%pa improvement. Not 10 % - or 20% - but if that happens over

10 years – it is an incredibly significant figure you are looking at.

That call to check? It really only involves you making the call.

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Disclaimer:

The content above contains my general observations on an issue. No course of action of any kind , is

being recommended and no financial advice is being given.