Is the cheapest ever the best?
Written by Jon-Paul Edwards
Director of Highworth Financial Planning
If you went onto Ebay, you could probably buy a used car for £50, so why do people drive around in cars that cost more than 200 times that?
The answer is because price is not the only factor. Reliability, performance, features, safety and long term suitability are all factors people consider as well as price when buying a car.
The same is true in Financial Services. Buying the cheapest could mean you end up with a banger. Something totally unfit for purpose and that creates more issues than it would ever solve. You still need to consider reliability, performance, features, safety, and whether the products will meet your needs now as well as in the future, but most people focus purely on price.
Financial Services isn’t that difficult to understand, but most people would prefer to learn about more interesting things which to be honest is totally understandable, and with only a little knowledge it is very easy to make mistakes.
Making a mistake when buying a car, could have catastrophic consequences, especially if safety is at stake. making a mistake when choosing a financial product can potentially ruin your life!
is this too dramatic? I don’t think so. Having the wrong insurance could mean you can’t claim when you need to, having the wrong pension could mean you spend the whole of your retirement living in poverty, having the wrong investments could wipe out your life savings over night and having the wrong mortgage could mean you over commit yourself and end up homeless.
Choose sensibly. If you are not sure what you are looking for then ask a professional Independent Financial Adviser – they are there to help you and it is not worth trying to do it yourself and getting it wrong.
Using the right IFA can make a massive difference when helping you find the best value products~Using the right IFA can make a massive difference when helping you find the best value products~Using a good IFA will make a massive difference helping you find the best value and most suitable products for your circumstances~A good quality IFA could make a massive difference and can help you find the best value solutions for your circumstances}. Unfortunately you cannot just open up the bonnet or take it for a test drive like you can a car. You only have a complicated and confusing booklet as evidence as whether you have it right or not, and the only time you know if you have it right is when you need to claim, and by then it is far too late to do anything about it.
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