Our Relationship with Money: Only dead fish go with the flow

Our relationship with money can be a love/hate affair. We use money on a daily basis, however, people are often unsure about where to place their money in order to make their savings grow. If it is a question of values, then believe me, values easily fade away in times of scarcity. Make a change in your relationship with money as you go through life, and you can go from an ample to a lavish retirement sum.
Naturally, money matters and after the Financial Crisis of 2008, it is a very popular topic. How we manage our money has become so important, that they teach Children at school ‘Money Management’, so hopefully they will grow up with a solid understanding about how best to run their household and where to invest their money on behalf of their future families.

Unfortunately, money seems to infiltrate every facet of our lives, from wanting the best education for our Children, to going on holiday, eating the best food and so on. There are those who can help you with this, a Financial Adviser.
Trusting someone with your money can be daunting, especially after the never ending scandals that emanate from the Banks these days. However, on the flip side Independent Financial Advisers have been rated as the most trustworthy Financial source (according to an Old Mutual Wealth survey). As the saying goes 'Only dead fish goes with the flow', and this could not be more true of those who go with the main stream banks or pension providers and accept the embarrassingly low rates of interest. You might feel that you do not earn enough to be able to set foot in the door of a Financial Adviser’s office, but this is simply not the case, your initial meeting with a Financial Adviser is always free (and usually they will not charge for any other meetings either).
Preparing yourself financially does not need to be a chore, and it will reassure you that your Finances are in professional hands, not lost somewhere in a Call Centre. As a matter of fact, surveys suggest that those who go through a Financial Adviser for their Pension, end up with a Retirement Income on average 48% higher than those who do not use a Financial Adviser.

When meeting your Financial Adviser, be sure to write down questions you might want to ask him beforehand and do not be afraid if you do not understand some of the jargon. Always remember, it is in a Financial Adviser’s best interests to ensure that your investment succeeds, because he will be taking a small share of the profits as payment!
Here are some important facts to know before meeting your Financial Adviser…
Automatic enrolment system is a pay packet being automatically diverted to a savings pot for workers' pension. Those who already save in a workplace pension scheme or are self-employed will not be signed up.
Firstly, an employee discounts a minimum of 0.8% of their earnings; the employer will be obliged to add a contribution that is the equivalent of 1% of the worker's earnings. Tax relief adds another 0.2%.
From October 2018, these amounts will increase to a minimum of a 4% contribution from the employee, 3% from the employer, and 1% in tax relief. This means the equivalent of 8% of a worker's earnings (including overtime, but excluding any earnings over £42,275) will go into their pension pot.

For example, from October 2018, somebody earning £20,000 a year would see £96.24 going into their pension pot every month. For this, some £48.12 will be taken from their take-home pay.

They will not be able to get at the funds until the age of 55 at the earliest so, in the meantime, the money is invested. The pension firm, insurance company, or government-backed organisation that is running the scheme will give each worker a choice on how risky they want these investments to be. You can choose a combination of: low risk, medium risk, and high risk investments.
There will also be options for people to choose Sharia-compliant, or ethical funds.
Thank you for reading. In order to find your local Financial Adviser, click here.

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