Demand for financial advice increases due to surging cost of living and market shocks

By George Prior, Financial Writer / London

This year’s cost of living crisis and wild stock market turmoil are prompting growing numbers of people to seek financial advice, according to new figures.

One of the world’s largest independent financial organizations, deVere Group, which currently has more than $12 billion under advisement, says year-over-year inquiries from new clients have increased by more than 25% until August 2022.

“Inflation remains stubbornly at multi-decade highs and rising prices are having a real impact on people,” says Nigel Green, CEO and Founder of deVere.

“As finances come under increasing pressure, with daily spending, savings and investments of households and businesses coming under increasing pressure, they are turning to advisors.

“They are looking to see what options they have to ease the burden. They are looking for financial opportunities to help them raise their standard of living, which for many is currently declining.

Besides the steep and painful increase in the cost of living, another major contributing factor is driving the demand for financial advice.

“Stock markets have been extremely volatile this year. The MSCI global equity index fell 20.9% in the first half of 2022,” observes the CEO of Vere.

“This follows impressive market performance in 2021, after the Covid selloff, which attracted an army of new investors – many of whom might have assumed valuations would continue to soar in a straight line forever.

“The major market downturn this year would therefore have been an unpleasant surprise for much of this new cohort, many of whom had been investing for the first time.”

Many experts agree that the best way to ensure financial security is to design, implement and manage a solid, tailored strategy with an Independent Financial Advisor (IFA). But choosing the right CFI, a professional who can manage your money and help you achieve your long-term goals, is not always easy.

Nigel Green says: “Getting it right is crucial. Your finances are too important to you and your family, and mistakes are too costly to choose the wrong financial mentor.

By asking these six questions of your potential financial advisor, they think you’ll avoid most potential pitfalls:

Is your company authorized to give financial advice by the relevant regulatory authority?

Does your company have an international presence?

Do you have more than one option for financial advice given?

How long has the company been around?

What is the total value of the company’s assets under management?

Do you offer full disclosure?

The CEO of the deVere Group concludes: “These unusual, and for many worrying, times have focused people’s minds.

“It’s encouraging to see more and more people seeking professional advice, as there are options to mitigate problems, protect and grow your money.”

“You might think I would say that, but I would say now is really not the time to ‘go it alone’.”

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