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? ›
Some of them are valid—for example, you probably shouldn't invest a ton if you don't have all of your high-interest credit card debt paid off. Or, if you're planning to make a big purchase next year, you wouldn't want to take the risk that comes with investing your savings.
Why would someone save instead of invest? ›
Saving provides a safety net and a way to achieve short-term goals, while investing has the potential for higher long-term returns and can help achieve long-term financial goals. However, investing also comes with the risk of losing money.
What is the main reason most people don t invest on a regular basis? ›
Most people don't regularly invest because of multiple reasons such as lack of financial goals, understanding, and a preference for immediate consumption. Compound interest plays a significant role in growing savings.
Why do people choose not to save and invest? ›
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? ›
Lack of time
Perhaps it is the misconception that actively investing money takes an exorbitant amount of time. This may cause some people to feel that the few minutes a day they have to spare is not enough. However, taking an active interest in your future and your finances can take as little as a few hours each year.
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.
Should I hold cash or invest now? ›
“Some of your funds should be positioned in cash instruments to meet more immediate needs, but money that is intended to achieve long-term objectives should be invested in assets like stocks and bonds to work toward those goals.”
Which is riskier saving or investing? ›
Risk tolerance refers to the degree of risk that you are willing to take on given the potential volatility of a financial decision. Saving your money is less risky than investing it. If you invest your money, you stand to potentially lose your principal, or initial investment.
Why do people avoid investing? ›
Fear that you will lose money when you invest. Fear that your lack of knowledge will be exposed. Fear of simply taking action and stepping out of your comfort zone. For young people, the data suggest that most of them think that the right time to invest just hasn't arrived yet.
Is investing $50 a month worth it? ›
Investing only $50 a month adds up
Contributing $50 a month to an investment account can help create impressive savings, even at a moderate 5% annual growth. It's a common myth that you need a few thousand dollars to begin investing.
Why is investing not for everyone? ›
Investing isn't for everyone
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.
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.
What is the meaning of investment advice? ›
An investment advice is deemed to be the act of providing personal recommendations to a client or potential client on one or more transactions relating to financial instruments.
What counts as investment advice? ›
Advice about investments means recommendations to certain retirement investors generally held in a tax-qualified retirement plan, IRA or certain health savings accounts (collectively a “plan”) regarding amounts relating to the following: What to do with the money, like buying, holding, or selling investments.
What not to say to investors? ›
10 Things Entrepreneurs Should Never Say To Investors
- You Need to Sign This NDA. ...
- We Have No Competition. ...
- We Don't Really Know Our Unique Selling Proposition Yet. ...
- We Have No Weaknesses. ...
- This is Such a Sure Thing it Can't Fail. ...
- I Don't Have an Exit Strategy Yet. ...
- We Really Need the Money.
