Is It Worth the Money to Hire a Financial Advisor?

Vanguard Study Calculates the True Value of a Financial Advisor

Among the most common questions financial advisors hear is, “Why on Earth should I hire you when I can manage my own money? I have a Superannuation Account and if I want to make other investments there’s a ton of information and advice available on the internet.”

We totally understand the question. Financial advice typically costs 1 percent of your portfolio per year. So, yes, people want to know if they are getting what they pay for.

A separate study by Russell Investments, a large money management firm, came to a similar conclusion. Russell estimates a good financial advisor can increase investor returns by 3.75 percent.

Not everyone wants or needs a financial advisor. About one-quarter of private investors are truly “self-directed,” according to Vanguard. These people truly enjoy investing. They obsessively follow the markets and enjoy creating and doing financial projections. Perhaps most importantly, these investors have an incredible level of discipline that prevents their emotions from intervening with their long-term investment strategy.

Given that three-quarters of us aren’t “self-directed” when it comes to money, it’s good to know that there is help available that can really pay off—in the right circumstances.

Vanguard says there are several ways in which a financial advisor can add value to your investment efforts. Among these benefits are guidance on developing an overall investment strategy, asset allocation, minimizing taxes, rebalancing, and how to structure/time withdrawals from your retirement accounts. Each of these services can incrementally boost a client’s returns—sometimes steadily, sometimes sporadically.

Below our office has listed some of the services we offer, that you may not already be aware of;

  • Help setup or manage your superannuation, pension and investment accounts
  • Direct contact with Centrelink on your behalf
  • Help completing forms and certifying documents
  • Keeps track of requirements from your insurance/super/pension providers
  • Receives notifications when payments haven’t been made/card details have expired.
  • Update your personal information across all platforms

& so much more!

If you know someone who is thinking about obtaining a financial adviser – tell them to contact us on 02 9369 1604 and we can discuss how we can benefit them.