What Is the True Value of a Financial Advisor?

Most people would consider Vanguard to be the prototypical “do it yourself” investment house.  However, Vanguard recently published a very interesting white paper summarizing how a good advisor can potentially add about 3 percent in net returns to a client’s portfolio every year.  The chart below illustrates how that potential 3 percent can be generated:

vanguard study

Source: “Putting a value on your value: Quantifying Vanguard Advisor’s Alpha”

While we agree these are many of the areas in which an advisor can add value, there are other important considerations, including how an advisor gets paid, what financial planning services they offer, and whether they operate as fiduciaries.  If you have questions on this whitepaper or anything else, please don’t hesitate to email or call us if we can be of service.  prunyen@independenceadvisors.com  | (484) 320-7446.

 

1.Registration with the SEC should not be construed as an endorsement of Adviser’s investment skill or acumen. 2.Past performance is not indicative of any specific investment or future results.  Views regarding the economy, securities markets or other specialized areas, like all predictors of future events, cannot be guaranteed to be accurate and may result in economic loss to the investor. 3.While the Adviser believes the outside data sources cited to be credible, it has not independently verified the correctness of any of their inputs or calculations and, therefore, does not warranty the accuracy of any third-party sources or information. 4.Unless stated otherwise, Adviser does not endorse the statements, services or performance of any third-party vendor.

 

 

About Patrick Runyen

As a Wealth Manager at Independence Advisors, Patrick Runyen, CPA/PFS, CFP® works closely with clients to implement wealth management solutions. He leverages his technical financial planning and consulting experience to assist clients with investment counseling, retirement planning, estate planning, wealth enhancement, asset protection, tax planning, and other personally significant financial decisions. CLICK HERE TO ASK PAT.

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