I added this page to provide a few insights into the Quantitative Value of Advice. Keep in mind, I am an advisor so, I already believe in the value of paying for advice. You need to make your own decision.
Here is a scenario I experience often and I want to share with readers:
Many of my clients come to me from referrals (#love_referrals). Those folks already know they want to pay for the service of advice. However, more than a few times in my travels I receive the question,
"Why would I hire an advisor?"
The most common follow up to that questions is the individual's own answer, "I can research everything I need online."
My reply is something along the lines of:
"That is true, everything you need to know is researchable online. But ... is that time spent going to be a good use of your day/ money/ kid's day off/ mind bending sales pitch watching video moments time/ etc.?"
Everyone must determine for themselves if paying for advice is a better use of their resources than hiring help. Here are a few links to check out if you have pondered this question:
Kiplinger article - Your Advisor Charges What? Understand the Value of Advice
Vanguard white paper - Advisors add "about 3%"
The Balance article - Is it Worth the Money to Hire a Financial Advisor?
The Telegraph - The value of expert advice from a financial adviser
Russell Investments white paper - Your advisor ... worth nearly 3%
Fidelity article - The Value of Advice
Morningstar white paper - Alpha, Beta and Now ... Gamma
Michael Kitces - Impact of Fees And Investment Costs on Safe Withdrawal Rates
There are definitely contra articles to the above. For example from:
The White Coat Investor - Value of an Advisor
Ninjacapitalist - Do Financial Advisors Add Value?
Ping me with your thoughts? I would love to hear what you think about paying for advice.
This is a content preview space you can use to get your audience interested in what you have to say so they can’t wait to learn and read more. Pull out the most interesting detail that appears on the page and write it here.
Copyright © 2023 R Michael S Menzies | All Rights Reserved.