This article was originally written for publication in Gallery Magazine.
As a Financial Planner, there are certain things I'm probably expected to say. The trouble is, experience has taught me that money isn't always that straightforward. As someone who’s worked in the industry for 20 years, here are four financial opinions that might surprise you.
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Retirement is overrated (for some)
I think retirement is often romanticised. For years, people talk about it as if it's the ultimate reward for surviving adulthood.
The reality is that retirement isn't the finish line. It's simply the next chapter. For some people that's travel, volunteering, hobbies, family or learning new skills. For others, it's continuing to work because they genuinely enjoy what they do.
The biggest mistake is comparing yourself to someone else's version of retirement. This is your time, your money and your life. If you're 70 and still working because you love it, why stop? Equally, if your dream is spending weekdays on the golf course or travelling, that's perfectly fine too.
2. Some people save too much
One of the biggest financial mistakes people make isn't saving too little, it's saving too much and forgetting to live along the way. That might not sound like something a financial planner would say, but hear me out.
I encourage my clients to aim for a life with as few regrets as possible. Of course, we need to save and prepare for the future, but life does have a habit of throwing occasional curveballs. I've known too many people who have worked hard, sacrificed experiences and accumulated significant wealth, only to never reach or be able to enjoy retirement the way they had planned.
I'm not suggesting you drain your savings and book a one-way ticket around the world, but sometimes people become so focused on building a comfortable future that they forget to enjoy the life they're living today.
3. Most people don't need to be financial experts
When it comes to investing, people often assume the most successful investors spend their evenings analysing stock market charts and reading company reports.
Some do, but many don't. So, if your idea of a fun evening isn't reading pension legislation, you're probably quite normal.
The good news is that you don't need to be a financial expert to make good financial decisions. A good financial planner understands your goals, guides you through important decisions and becomes your financial coach, giving you peace of mind and helping you strike the right balance between enjoying life today and saving for your future. Research has consistently shown that those who use a financial planner tend to accumulate significantly more wealth over time.
4. Property is not always the best investment
Property has long been a popular investment, particularly in the Channel Islands. While it has delivered strong returns in the past, I'm not convinced the next 20 years will look like the last 20. With affordability stretched and borrowing costs higher, it seems unrealistic to expect the rapid price increases of previous decades to continue.
That's not to say property is a bad investment. Owning your own home can provide roots, security and stability. However, being a landlord is often more expensive and demanding than people realise. There are repairs, maintenance, insurance, compliance costs and tax on rental income, while property is also relatively illiquid compared to other investments.
Property can absolutely play an important role in building wealth. I just don't think it deserves the pedestal we sometimes put it on.
