A Discussion of the Value Financial Advisors Bring to the Wealth Management Process
Learn how advisors can enhance an investor’s life by helping improve their decision-making process, and how working with an advisor may increase an investor’s sense of confidence and security.
Research has found investors who purchase financial advice are more than one and one half times more likely to stick with their long-term investment plan than those who did not. Because of this commitment to a game plan, the wealth discrepancies between families who receive advice and those who do not grows over time.
The chart below shows how those who receive four to six years of advice, the multiple attributable to advice is 1.58. Those receiving seven to 14 years of advice nearly double (1.99x) their no-advice peers, and those receiving 15 or more years of advice clocked in at an overwhelming 2.73x multiple. Good financial advice pays in the short run, but the multiplication of those gains over an investing lifetime is truly staggering.
This paper will examine the ways in which working with a financial advisor makes sense. It will also explore the financial advisory activities that add the most value. Finally, it will discuss areas in which the advisor-investor relationship can be enhanced. LET’S
