What makes you feel confident in your decisions?
For many of us, it’s a mix of having a plan in place, understanding the subject matter and knowing the outcome of our actions.
It’s therefore fitting that recent research from HSBC shows that the top three things which make women less likely to seek investment advice are:
- An overuse of financial jargon (35%)
- A dislike of taking risks (72%)
- A lack of time (17%)
It’s not just women, but it is an issue
More than a quarter (26%) of men also dislike too much jargon, while over half (54%) do not like taking investment risks.
Of course, for some people, investing is simply not of interest, regardless of gender. But recent statistics show that women continuously fall below men, in pay, hours worked and savings.
Aegon’s Retirement readiness report shows that, by the age of 50, men have double the pension savings of women. Whilst this is most likely due to career gaps and a history of unequal pay, a disengagement between women and investment advisers may also play a part.
Getting involved in investing
If you are interested in investing, the most important part is understanding what is happening to your money.
Sometimes, we need to use financial jargon to make a point, but any adviser worth their salt will be more than willing to explain what they mean. In addition, most advisers know that using too much ‘insider terminology’ can mean losing valuable clients, so they try to avoid it.
Safety tip: if you are talking to someone who seems to be intentionally baffling you with words and phrases that you don’t understand, they may be trying to scam you. Remember, you are perfectly within your rights to say ‘no, thank you’ and walk away from an adviser, or a person claiming to be one.
There are numerous ways to grow your own investment knowledge, including:
Reading books: Financial wellbeing books are widely available, most of them are written by financial advisers and individuals who are involved in the profession. One of the great things about financial advisers is that we tend to read each other’s books and leave reviews, so you should be able to tell which books are reliable before you buy them.
Listening to podcasts: If you’re the type of person who likes to tune into the radio, audio books or music when you have the chance, then podcasts might be ideal for you. There are numerous great financial wellbeing podcasts, but we highly recommend this one.
Speaking to a financial adviser who understands: It’s important that you can form a relationship with your financial adviser. We’re all creatures of habit and comfort; we get the best experiences from life when we feel safe and supported in our decisions. That’s why we work hard to make every client feel comfortable, informed and confident when making financial decisions.
Is advice necessary?
Nobody can force you to seek financial advice, but there are three very compelling reasons why you should do so anyway:
Knowledge: Financial advisers have the qualifications, experience and information to suggest the products, methods and plans that best suits your needs and will help you to work toward your goals.
Reach: Often, financial advisers will know of providers and products which are new or lesser-known. The perfect solution to your concerns may be one that you have never heard of. In addition, many financial advisers can communicate with other professionals, such as solicitors and estate agents, which can streamline your plan and make improving your financial heal much easier.
Money: Research has shown that seeking financial advice can give you a larger retirement income. According to Unbiased, those who seek advice can contribute an extra £98 to their pension fund each week, which leads to a boost in annual retirement income of £3,654.
Ready to get involved and take charge of your finances? Contact Sarah or Bev on 0115 9338433.