Measuring the Value of a Financial Advisor

What’s the value of a financial advisor?
Two studies found that working with a financial professional can result in higher returns and potentially lower personal stress.

Measure Stress
Seventy-seven percent of people within 11-15 years of retirement are stressed when thinking about retirement savings and investments.¹
Working with a financial advisor to develop a written retirement income strategy, however, can increase your financial confidence leading up to retirement, according to Franklin Templeton’s annual Retirement Income Strategies and Expectations Survey.

Manage Returns
In addition to providing financial guidance, financial advisors may also add about three percentage points in net portfolio returns over time, according to a study by Vanguard.

Financial Advisor Advice Components

Portfolio Construction
Asset allocation  Up to 1.2% (Potential Added Return to Investor Portfolio)
Asset location

Wealth Management
Rebalancing  Up to over 1%  (Potential Added Return to Investor Portfolio)
Drawdown strategies



Behavioral Coaching
Managing investor emotions Up to 1.5%  (Potential Added Return to Investor Portfolio)
Aiding decision-making
These studies provided feedback and estimates based on customer experience at the two firms. The value of advice is not a guarantee of performance. The rate of return on investments will vary over time, particularly for longer-term investments. Actual returns will fluctuate. It’s important to remember that financial advisors also may offer guidance that wasn’t measured in the two studies. Advisors can help develop strategies that protect against the financial consequences of loss of income, and coordinate with other financial professionals on tax and estate management.

Franklin Templeton, 2016
Franklin Templeton, 2016
Vanguard.com, 2015
Vanguard.com, 2015

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2017 FMG Suite.

Securities offered through LPL Financial, member FINRA/SIPC. Investment advice offered through Independent Advisor Alliance, a registered investment advisor. Rutledge Financial Partners, LLC and Independent Advisor Alliance are separate entities from LPL Financial. Independent Advisor Alliance.