Broker Check

Back to Basics: The Value of Financial Advice

| March 06, 2023

Calculating the dollar value of using a financial professional is not an exact science since all clients and professionals are unique.

But studies have pointed to the potential for higher returns when getting financial advice. A 2019 Vanguard report on "Advisor's Alpha" determined that a financial professional can add as much as 3% net return per year to a client's portfolio, depending on a client's circumstances and investments.1 Even incrementally higher annual returns can add up over time as a person pursues their financial goals.

Professional advice

A financial professional also can help provide guidance in a number of other ways, including:

  • Goal Setting: One benefit of using a financial professional is to help you articulate your goals and determine which are most important to you. A financial professional can also help turn those goals into an investment strategy aligned with your overall risk tolerance.

  • Expertise: A licensed financial professional is trained to help you with a broad range of issues, including saving for college and retirement and overall investment needs.

  • Research: Many financial professionals work with a team of other professionals who have access to research and industry resources to help determine what investment opportunities are designed for your situation.

  • Objectivity: Your financial professional can help take some of the emotion out of investing. They can keep you focused and help you avoid mistakes that might undo your overall financial strategy.

  • Guidance: A financial professional can provide some guidance, which may help you spend more energy on other parts of your life.

If it's time to start working with a financial professional or evaluate alternatives to your current approach, please give us a call or send an email. We look forward to hearing from you.

1, June 10, 2021