A new study1 has found that people with a financial adviser are over four times more likely to display high levels of financial wellbeing than those who have never received financial advice.
Financial wellbeing relates to the control people have over their financial future. Those with high levels tend to not only meet their long-term financial goals, but also have a clear idea about what makes them happy and what they want from life, thereby allowing them to identify and achieve more meaningful life goals both now and in retirement.
This latest analysis was based on a survey of 10,466 UK residents and found that the key to building financial wellbeing is to have both ‘money’ building blocks and ‘mindset’ building blocks. People with the best financial wellbeing scores did well on both fronts; in essence, all money and no long-term happiness plan was found to be no better overall than having a plan but no money.
Respondents with the best possible combination of scores were classified as ‘all-rounders’, with this group financially comfortable and enjoying life now while also planning for their future happiness. Essentially, such people are equipped to achieve the perfect balance between understanding the importance of both money and mindset.
Wellbeing and advice go hand in hand
Perhaps unsurprisingly, the study revealed that people who seek professional financial advice are far more likely to fit into the ‘all-rounder’ category than those who do not. Overall, just 10% of those who had never received financial advice were fortunate enough to combine healthy finances with a positive money mindset, compared to 44% of those who enjoy an ongoing relationship with a financial adviser.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.