What a financial planner does to help.

Updated research from Vanguard confirms what previous research found concerning the average value added to clients' long-term wealth by a financial planner.  

   

 

The original Vanguard research covered a 16 year period and looked at how a financial planner adds value to a client’s wealth.  We reported on this in September last year, article replicated below.  Now, six months later, March 2019, further research has confirmed the original findings.  

Put simply, the use of professional financial planning expertise can add, in the long-term, around 3% to a client’s wealth.  Extra that not only adds value but also provides the funds to pay for a financial planner's services, assistance with tax issues, an expert in retirement planning and often a friend.  All helping you make decisions that are, otherwise, complex and difficult.

---------------------------------------------

What a financial adviser can add to your portfolio's returns (September 2018)

A 16-year study by Vanguard (latest report from July 2018) has found that this figure is about 3% net. 

This is over and above what might be generated by non-planner assisted investment activity.  This means that even for small investors, a financial planner will not only pay for themselves but provide the professionalism to navigate the confusion, performance and peace of mind you might not get elsewhere or if you were doing the job yourself.

A recent example:  An investor was using three stock brokers and each one thought the others were managing issues such as tax.  When a financial planner was engaged it was realised this investor had lost around $200,000 over a number of years.  This investor only has a modest portfolio.

 

Peter Graham
PlannerWeb

Prosperity Financial Planning Pty Ltd (ABN 91 161 761 208) trading as Prosperity Financial Planning is an Authorised Representative of Affinia Financial Advisers Ltd ABN 13 085 335 397 Australian Financial Services Licence No. 237857

Financial Services Guide Part 1 Part 2 | Legal Disclaimer | Privacy Policy

General Advice Warning: This website contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.

You don't have to be great to start, but you have to start to be great.

Zig Ziglar

Coming together is a beginning; keeping together is progress; working together is success.

Henry Ford

You must be the change you want to see in the world.

Mahatma Gandhi

Where there is no vision, the people perish.

Proverbs 29:18

The only thing to do with good advice is to pass it on. It is never of any use to oneself.

Oscar Wilde