It’s the age old conundrum of cost vs value vs “risk”. In any and every field “risk” means avoiding a bad outcome. It is to the detriment of all that “risk” is so tightly associated to the ups and downs of investments
In many areas it is obvious you should seek professional help – dentistry for example, if you DIY and get it wrong a world of pain and cost might ensure, this is pretty obvious to most people. The risk of a bad outcome is high and probably painful.
Further down the scale there are things like hairdressing and servicing your car. Fairly easy to do, less risk of a bad outcome, mistakes are easily rectified, but why bother with the hassle to save a few quid?
Hairdressing (for example) provides an immediate and blindingly obvious benefit – you go to a hairdresser, get a haircut, look and feel better (usually) and that represents good value. The risk of a DIY haircut is having to wear a hat for a few weeks – it will not alter the course of your life.
Then there are legal, accounting and financial matters where it gets murkier. Perceived simplicity clashes with underlying complexities, including issues of trust and inertia.
While some grasp the importance of professional advice swiftly, others may waver or outright dismiss its value. In these fields, the stakes are significantly higher: a bad outcome can be easily achieved and have profound, life-altering consequences. Risk mitigation comes from leveraging the collective expertise of professionals who have devoted countless hours to their craft.
The value of financial planning, while more nuanced and less obvious than the value of a decent haircut, is profound. It unfolds over time, revealing the perilous nature of DIY financial planning. Hidden risks, often overlooked by the novice, can precipitate severe, life-changing outcomes. Despite the spectre of financial scandals, it is plausible that DIY investors have, through poor decision-making, incurred losses far exceeding those scandals.
The subtleties of financial planning’s value may not be instantly apparent to all, mirroring the nuanced and delayed realisation of its benefits.
Our role pivots on guiding you through the obscured risks of a DIY approach, which, though seemingly straightforward, is fraught with pitfalls capable of leading to dire outcomes.