The Value Add of an Advisor: Vanguard Says About 3%, Russell Says More Than 5%

Even though we have seen advances in AI and robo advising, it seems human advisors are still in demand and add value.  Whether for home repairs or financial planning many folks these days feel they can go it alone. When it comes to your finances and planning your future, is that really the best choice? Sure, you can search the Internet and find a few retirement calculators and even articles on saving, investing and “Top 5” lists. But, is that information even relevant to your personal situation? How do you know if what you found fits into your financial plan or is even appropriate to your situation? What if you make a move only to learn later that your decision cannot be undone without costly consequences? An on-going relationship with your adviser can be invaluable.

Hiring a financial planner can help you reap more than just potentially better returns. Planners can help you with a myriad of financial decisions and life changes such as retirement, debt management, marriage, divorce and the birth of a child. All of those key life changes. The help, guidance, and advice of a financial planner is well worth the fees charged and studies by Vanguard and by Russell Investments support this position. Vanguard claims working with a financial planner can add “about 3%” over time to your returns and that behavioral coaching is the most valuable benefit an investor receives. Russell Investments claims working with an adviser can help increase your portfolio by “approximately 5.12%”.  Russell also claims the biggest component of which is in behavioral coaching. Helping you to make better financial decisions.

However, these studies point out that a financial planner brings more to the relationship after fees than just a potentially better return. The studies reveal that in addition to a potentially better return, financial planners help clients with difficult decisions, save clients time, explain complex transactions, and provide guidance and an on-going relationship.

When you do have a life change or follow-up question, a call to your planner can be a lot more comforting than going it alone. As an independent Certified Financial Planner™, I can help you create a plan, set a timeline and put that plan into action. I can also be there to talk you through market gyrations and remind you of your goals and timeline. Let’s start planning today.

LINKS BREAK. FOR LOCATING THE STUDIES, PLEASE SEARCH THE FOLLOWING IN YOUR SEARCH ENGINE OR CONTACT ME:

Vanguard – The Added Value of Financial Advisors

Russell Investments – 2023 Value of a financial advisor update: More than 5%

As an independent Certified Financial Planner™, I can help you with your finances and long-term planning. Contact me and let’s get started. #talktometuesday #getstarted #HowIcanHelpYou #GetHelp #Hireaplanner #vacation #CFPPro