Education Regional Manager, Oonagh Morrison, from Wesleyan Financial Services, highlights the value of financial advice and discusses misconceptions.
The world of education is dynamic, fast paced and constantly evolving to adapt to the changing needs and requirements within schools. Those working in leadership positions within the education sector have much responsibility. It is their job to manage establishments, to help ensure that staff are supported and equipped to educate our children to the best of their ability in a safe environment, and that administration, policy and legislation are correctly implemented to enable successful day to day operation.
What is the value of your time?
Those in senior leadership positions in education are typically busy people with demanding work schedules. After a hectic day, setting time aside to think about financial planning may understandably fall by the wayside, as any remaining free time may already be allocated to family, running a household, exercise, hobbies and socialising. However, sound financial planning and management, takes time, careful thought and a considerable amount of effort – something to take into consideration when weighing up the merits of the value of taking professional advice. The earlier you start to plan, the more choices you can present yourself with. We always recommend starting as early as possible and having regular reviews to keep your finances on track.
What do the words ‘financial advice’ mean to you?
Stereotypes are common throughout society and financial advice is no exception, there are many stereotypes and misconceptions surrounding financial advice and its value. One such assumption may be that financial advice is primarily sought by wealthy individuals for large investments, and that advisers are typically trying to sell products to make a commission.
A good financial adviser, however, is there to educate and empower you to take control of your finances and your financial future. During a review, your adviser will take the time to understand your circumstances and to define your goals, after assessing your individual situation as a whole, they will put you in an informed position regarding your options and consider ways to make your income and capital work harder for you. The relationship between an adviser and their client, is one built on trust, and one best built over the longer term, as your financial situation will change and develop as your life does.
Considering the value of financial advice
In 2017, the International Longevity Centre (ILC) commissioned a survey into the value of financial advice. The report quantified for the first time, the value of taking financial advice for people’s overall financial outcomes.* In 2019, the ILC released its updated analysis of the original survey with What it’s worth – revisiting the value of financial advice. It found that on average, financial advice can make people £47,000 better off in pensions and financial assets when they retire. ** It also suggested that fostering an ongoing relationship with a financial adviser leads to better financial outcomes.
*International Longevity Centre -UK (ILC-UK) ‘The value of advice’ report, July 2017. The research explored the impact of financial advice between 2001-2006. See also ‘What its worth – Revisiting the value of financial advice‘ Dec 2019.
**Receiving professional financial advice between 2001 and 2006 resulted in a total boost to wealth (in pensions and financial assets) of £47,706 in 2014/16.
A bespoke service
Specialist financial advice is tailored to fit your individual needs and requirements. Rather like a tailored suit, you could get one off the shelf, but you may find that the fit is not quite right and that it needs adjusting.
Regular reviews with your specialist financial adviser can help you to make informed decisions, to ensure that you fully understand exactly what you have at any one time and that you have the right things in place for the right reasons.
To better illustrate the point, you may already have protection in place for your income or your mortgage, for example, but is it right for your needs? Does it cover what you think it does? Are the terms the best terms, and does it start and end at the right point for your circumstances?
Specialist financial guidance essentially provides a sense check to say that this has been done in the best way it could have been done, and that it’s reviewed on a regular basis to ensure it is still fit for purpose.
A duty of care
In the UK, the act of offering financial advice is regulated by the Financial Conduct Authority (FCA). All advisers have to be approved by the FCA, whose job is to protect consumers from harm that could be caused by poor conduct in the financial services industry.
Taking financial advice from a specialist financial adviser with a duty of care offers certainty and clarity that the advice and guidance that you receive is appropriate to your plans, your risk level, your comfort factor and your personal ethics. This helps you to avoid expensive mistakes and to make good decisions with your money. There is also the additional reassurance, when using a regulated advisory service, that if a dispute should arise, complaints can be escalated to the Financial Ombudsman Service (FOS).
Why seek specialist guidance?
An adviser can offer clarity and reassurance that whatever has been put into place, be it protection or investments, is the most appropriate course of action for your individual circumstances, your risk level, your objectives and your ethics. All aspects of your life are taken into consideration, including where different aspects may impact each other along the way, and what the most appropriate course of action is.
What we typically find as advisers, is that when we talk to people in school leadership who have set up their own investment portfolio for example, they don’t necessarily have a full understanding of what they’ve invested in, the level of risk, where it’s invested and why it’s invested into those areas.
When seeking professional financial advice, you are essentially passing the responsibility to another person – someone with an overview who will help you to manage your finances and reach your goals on every step of life’s journey. This spans from the start of your career, to buying your first home, climbing the career ladder, and all the way through to retirement.
A challenging friend
The value of financial advice is having that challenging friend along the way. This will be someone who questions your decisions and puts you in an informed position at all times so that you understand exactly what you have, what it’s doing, why it’s doing it, whether it’s in the right places, and what could be done better, rather than leaving it to you – an extremely busy school leader – to hope that you’ve done it well enough and that you’ve made the right decisions at the right times.
Bear in mind that the value of investments can go down as well as up and you may get back less than you invest.
The NAHT is an introducer appointed representative of Wesleyan Financial Services Limited.
At Wesleyan Financial Services, a team of specialists focus solely on professionals from the education sector and their unique financial planning needs. They are there to support you on each stage of life’s journey, from graduation to post-retirement and every step in between.
If you would like support or guidance on understanding your financial position, speak to a Specialist Financial Adviser at Wesleyan Financial Services for a financial review by visiting Financial planning for school leaders . Charges may apply. You will not be charged until you have agreed the services you require and the associated costs. Learn more about our charges here.
About: Oonagh Morrison is a Regional Manager, at Wesleyan Financial Services, supporting teachers, school leaders and their families with financial planning to secure their financial futures.
Advice is provided by Wesleyan Financial Services Ltd.
NAHT is a trade union whose registered office is situated at Centenary House, 93-95 Borough High Street, London SE1 1NL. Telephone: 0300 30 30 333; website: www.naht.org.uk. NAHT is an introducer-appointed representative of Wesleyan Financial Services Limited.
‘WESLEYAN’ is a trading name of the Wesleyan Group of companies.
Wesleyan Financial Services Ltd (Registered in England and Wales No. 1651212) is authorised and regulated by the Financial Conduct Authority. Registered Office: Colmore Circus, Birmingham B4 6AR. Telephone: 0345 351 2352. Calls may be recorded to help us provide, monitor and improve our services to you.