The Value of Advice

The Value of Advice:

It is often difficult to ascertain the advice value, provided by financial advisers. It’s difficult because much of the value we provide to clients, or more particularly, the value client’s state they get from their relationship with us, is not easily quantifiable.

However, Russell Investments has recently released their “2019 Value of an Adviser Report” where they have tried to quantify the value of our advice. In addition, they have identified areas where value is provided but the value in these areas was difficult to quantify.

Most of the value that they can quantify are for things advisers do every day, often without clients being aware. These include:

• Ensuring your portfolio asset allocation remains in line with the risk profile originally agreed to,
• Advice and cautioning clients against poor investment decisions,
• Providing guidance around the tax implications of decisions you are making.

These day to day tasks are estimated to contribute around 4.4% on average per year to the performance of client portfolios.

But Financial Advisers do much more than this. Getting a plan in place, helping you to focus on the outcomes that you have indicated are important to you. Helping develop strategies that will assist you in:

• Paying for your home,
• Saving for retirement,
• Educating your children.

All of these things have value, but that value is difficult to quantify in dollar terms, but knowing these strategies are taken care of, can help you sleep at night. What value do we place on peace of mind?

If you are considering getting advice, speak with a Certified Financial Planner, who is part of an FPA Professional Practice. Take advantage of the Value of Advice.

Peter Jordan is a Sub Authorised Representative 244948 of Joredg Pty Ltd as trustee for the Jordan Hybrid Fixed Trust, Corporate Authorised Representative 473095 of Keystone Partnership Pty Ltd AFSL No 466137

Review Peter Jordan of  Clearway Advice and Financial Management on Adviser Ratings