We'll only ever tell you to invest with us if it's right for you, in fact, we only tell 23% of the people we advise to invest with us. Here's why we're not 'yes' people.
We want people to be life-ready
As we well and truly know by this point, life can be chaotic and unexpected. Losing a job or having something go wrong with your health or housing can drastically change your circ*mstances. Having an emergency fund of three months worth of expenses can help buy you some time to get you back on your feet instead of being knocked sideways! This is why we prioritise having an emergency fund over investing. It’s practical, but also does wonders for your well-being to know that you can handle any unexpected curveballs thrown your way.
We’re looking at the bigger picture
We don’t just view people as potential investors. We view people as people, each with individual financial circ*mstances. This means that with financial advice, one approach doesn’t work for everyone! Learning about your circ*mstances is important to us as it helps us map out your overall money journey. This means working out where you are now with your money and where you’d like to be in five or ten years. If you’d like to become an investor we’d love to help you get to that point, but we prioritise the health of your overall finances first. (For example, this might mean clearing debt to reduce late charges instead of investing.)
Investing isn’t for everyone
Investing involves risk, which can be a worry. When you invest you give your money the opportunity to grow in value, you also expose it to the risk of it going down in value too. If someone isn’t comfortable with the idea of their money maybe being worth less after the time that it’s been invested, then investing might not be for them. This is why we like to check that you’re open to the aspects of risk that come with investing as you consider it. So that you’re investing (or not investing) in a way that suits you best.
We’re a different kind of business
Financial advice is for everyone, regardless of wealth, and making advice accessible is our top priority. A lot of investment companies will allow anyone to invest, instead of checking in to see if investing is right for them first. We offer a view of your full money picture and then we let you know your best next steps. If that includes investing, great! But it’s not the end of the world if it doesn’t.
One of our financial advisers had a conversation recently that led to the person not investing with us but investing in their workplace pension instead, because it would be more beneficial to them. What’s most important to us is that you’re on the right path with your money, and that’s at the heart of our financial advice.
We’re in this for the long-run
If you’re not ready to invest yet, we can still help. Our app can help you see exactly what’s happening with your money as you connect all of your accounts. From there, you can get tailored spending hints and tips to make the most out of your money and start saving. Wherever you are at with your money, we’re all about where you want to be and we’ll do what we can to get you there!
FAQs
Investing isn't for everyone
Why do people say not investment advice? ›
When people say "not investment advice" before giving out investment advice, they are usually attempting to protect themselves from potential legal liability.
Why do people not want to invest? ›
Mistrust of financial markets. Humans have a very difficult time assessing and interpreting risk. Our self-bias makes many of us believe that whilst a risk may be real, there is no way it will happen to us.
Why would someone save instead of invest? ›
Saving is generally seen as preferable for investors with short-term financial goals, a low risk tolerance, or those in need of an emergency fund. Investing may be the best option for people who already have a rainy-day fund and are focused on longer-term financial goals or those who have a higher risk tolerance.
What are the disadvantages of investment? ›
10 Disadvantages of Long-Term Investments
- Liquidity Constraints. According to our methodology, people investing in long-term investments tend to face several liquidity constraints. ...
- Opportunity Cost. ...
- Limited Flexibility. ...
- Emotional Stress. ...
- Limited Diversification.
They could be completely afraid to invest. It could be that their risk tolerance is very low. Maybe they just don't think they want or need any additional funds. Being content is another reason that someone wouldn't invest.
Is it worth paying for investment advice? ›
A financial advisor is worth paying for if they provide help you need, whether because you don't have the time or financial acumen or you simply don't want to deal with your finances. An advisor may be especially valuable if you have complicated finances that would benefit from professional help.
Why people stop investing? ›
For some, it's a fear of taking losses. For others, it's feeling they don't know how and/or that they don't have enough resources to invest.
When should you not invest? ›
“I advise my clients that any money they are going to need to spend in the next two to three years should not be invested in stocks,” says Itkin. “You do not want to have to sell during a bear market and risk losing principal.”
Do I really need to invest? ›
If you have built up your emergency fund and don't carry any high-interest debt, investing your extra money can help you grow your wealth over time. Investing is crucial if you're going to achieve long-term goals like retirement. Real-life examples are the best way to illustrate this, Keady says.
The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals. Let's take a closer look at each category.
Should I hold cash or invest now? ›
To determine which investment is best for you, pinpoint your time horizon, risk tolerance, and liquidity needs. Cash equivalents are usually best for short- and medium-term financial goals, while bonds and stocks are better for medium- and long-term ones.
Which is riskier saving or investing? ›
Which is riskier, saving or investing? By definition, saving entails very little risk. Investing, on the other hand, comes with the risk of losing money.
What are 5 cons of investing? ›
While there are some great reasons to invest in the stock market, there are also some downsides to consider before you get started.
- Risk of Loss. There's no guarantee you'll earn a positive return in the stock market. ...
- The Allure of Big Returns Can Be Tempting. ...
- Gains Are Taxed. ...
- It Can Be Hard to Cut Your Losses.
Downside risk is the potential for your investments to lose value in the short term. History shows that stock and bond markets generate positive results over time, but certain events can cause markets or specific investments you hold to drop in value.
What is a negative of investment? ›
A negative return refers to a loss, either on an investment, a business's performance, or on invested projects. When an investor purchases securities with the goal of those securities appreciating but rather they decrease in value, the investor has a negative return.
Why financial advice disclaimer? ›
Financial disclaimers often specify that websites are not responsible for the actions users take based on the site's content. A financial disclaimer helps reduce your legal liabilities if readers decide to use your content as a replacement for professional financial advice.
Why do people not use financial advisors? ›
Lack of perceived need. Many consumers share the perception that they simply don't need a financial planner. They may receive financial advice from a family member or friend; in some cases, they feel they've already achieved their goals and thus don't require advice.
What not to say to investors? ›
Blog
- 11 Things You Should Never Say To An Investor. ...
- “I Am A Sole Founder and Do Not Need a Team” ...
- “My Founder And I Met A Few Months Ago” ...
- “We Will Make A Quick Exit” ...
- “We Have A Lot of Interest From Other Investors” ...
- “You Need To Sign An NDA With Us” ...
- “Our's Is A Product-Led Growth Model” ...
- “We Just Need Your Cash”
Generally a horrible idea and you would be subject to legal liability and potentially be required to register as an investment advisor anyway. You should refuse compensation for a referral.
