Value of Using an Advisor

A Russell Investments study showed the value of having an advisor is 2%

Cost of Investor Behavior

SOURCE: Russell Investments 2017 Value of a fiduciary advisor, March 2017.

“The average stock fund investor’s inclination to chase past performance cost them 2% annually in the 33-year period from 1984-2016. In that sense, an advisor’s ability to help their client stick to their long-term financial plan, and thereby skirt irrational, emotional decisions, is worth 2.0%” -Russell Investments

Jay Moreland, of the Emotional Investor confirms this: “It appears investor behavior, while providing short-term relief by appeasing momentary emotions, has a cost of anywhere between 2% and 4% (or more) in a given year. There are lots of reasons why investors perform poorly, but the bottom line is that many
investors are incapable of actually investing. Rather, they cross that fine line from investing and into speculating.

An Advisor Can Add 2.25– 4.1% Annually


A Vanguard study identified behavioral coaching as adding 1.50% per year on average. They identified 4 other areas where having an advisor adds value.

Quantifying Advisor Value

SOURCE: Vanguard Putting a value on your value, September 2016.

Russell Investments Value of Advisor Full Article

Vanguard Value of Advisor Full Article