Core Financial
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Karen Ketcham | Monty Coen | Brenna Chenoweth


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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.

Lower 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.

With and Without²

Investors...Worry about running out of moneyWorry about being a burden on family
With an advisor23%5%
Without an advisor30%6%

Higher 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.³

Financial Advisor Advice Components⁴

AdviceAdvice ElementsPotential Added Return to Investor Portfolio
Portfolio ConstructionAsset allocation
Asset location
Up to 1.2%
Wealth ManagementRebalancing
Drawdown strategies
Up to over 1%
Behavioral CoachingManaging investor emotions
Aiding decision-making
Up to 1.5%

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.

    1. Franklin Templeton, 2016 (Most recent statistics available.)
    2. Franklin Templeton, 2016 (Most recent statistics available.)
    3. Vanguard.com, 2015 (Most recent statistics available.)
    4. Vanguard.com, 2015 (Most recent statistics available.)

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 2018 FMG Suite.

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