The Cost of Advice: A Misunderstood Conversation

There’s been a growing conversation online about the cost of financial advice.

It often pits two groups against each other, but they’re not actually at odds.

On one side, we have commentators, journalists, educators, and personal finance influencers. Many of them believe in a DIY approach and do a fantastic job breaking down financial topics. They encourage people to take more interest in their money. For some, they’re the first step into financial awareness. That’s a good thing.

But it’s important to remember they aren’t personally responsible for what happens when someone follows their guidance. They are unlikely to know their readers' names, let alone their situations. They also don’t see how their tips play out in practice.

In the second group, we have professional financial planners. These are the people who sit in the room with clients. They get to know the full picture and take regulated responsibility for the advice they give. These planners have spent years helping real people make lifelong decisions. Often, these decisions occur in messy, nuanced situations that don’t fit into neat online templates.

And this is where the debate often misses the point.

It’s Not Just Theory

The loudest voices tend to assume that advice is just about choosing funds or chasing performance. From that viewpoint, they argue that any fee simply eats into returns and leaves the client worse off.

It sounds reasonable on paper. But life isn’t lived on a spreadsheet. In reality, most people don’t just need information; they need help making sense of it all. They need someone to help them organise their finances, define their goals, and invest in line with those goals. They also need assistance in finding the right solutions for them, managing risk, and sticking with the plan when the world gets noisy.

That’s where proper advice earns its place. It’s not just about access to investments. It’s about helping people avoid costly mistakes, reduce unnecessary tax, stay on track, and feel confident they’re doing the right things with their money.

A good planner often pays for themselves many times over. This isn’t always in investment returns alone, but in joined-up thinking, better structures, lower costs, and clearer, more focused decision-making.

It’s Right to Ask Questions

To be clear, criticism has its place.

There are still areas and businesses in our profession that need to improve. Some firms sell products without real planning. Others still operate with hidden costs or use outdated, expensive investment strategies. When advice becomes too corporate, the human element—the relationship with the client—risks getting lost in the machine.

These things deserve scrutiny. We welcome it and will always strive for better client outcomes.

But the answer isn’t to suggest that all advice is too expensive or, worse, unnecessary. That message discourages people from getting the help they need. It leaves many in a state of inaction, confusion, or even anxiety.

From Chaos to Clarity

Real financial planning is a partnership.

It helps someone move from confusion or overwhelm to clarity and control. That fee isn’t just a cost; it’s a catalyst for progress. Over decades, it can be the difference between hoping things will work out and knowing they will.

It’s not perfect. No one is. But the value is real, and the outcomes speak for themselves.

A Shared Goal

We all want better financial outcomes for more people. Whether through a helpful blog, a podcast, a YouTube channel, or a one-to-one advice relationship, the more people we can empower, the better.

But let’s not downplay the role of proper, professional advice. The right relationship, with the right planner, can be life-changing.

And that’s something worth defending.

The Importance of Financial Literacy

In today's world, financial literacy is more important than ever. Many people feel overwhelmed by financial jargon and complex investment options. This is where education plays a crucial role.

Financial literacy empowers individuals to make informed decisions. It helps them understand the implications of their choices. By improving financial literacy, we can bridge the gap between DIY advice and professional guidance.

The Role of Technology in Financial Advice

Technology is transforming the financial advice landscape. Robo-advisors and financial apps offer accessible options for many. However, they cannot replace the personal touch that human planners provide.

While technology can enhance efficiency, it’s essential to remember that financial planning is about relationships. A good planner understands their client's unique circumstances. They can tailor advice accordingly, something technology cannot fully replicate.

Conclusion

In conclusion, the conversation about the cost of financial advice is vital. It highlights the importance of understanding the value of professional guidance.

While DIY resources are beneficial, they should not replace the need for personalized advice. A good financial planner can help individuals navigate their financial journeys. They provide clarity, confidence, and a roadmap to success.

Let’s continue to advocate for better financial outcomes for everyone.

The key benefits of financial advice

Please note, investments carry risk. The value of your investments (and any income from them) can go down as well as up, and you may not get back the full amount you invested.