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The "Not-So-Obvious" Value of Financial Advisory Services

Investing Financial Planning Retirement Planning

A 60-second read by Anthony Benante, CFA:  What value does a Comprehensive Financial Advisor offer? There is the obvious – offering expertise in investment management and financial planning, and then there is the not-so obvious. Many investors find the volatility in the markets difficult to stomach and often feel pressured to sell or exit the market entirely.  As advisors, we understand the history and the nature of the markets and offer what is often referred to as “Behavioral Coaching”.

Though we cannot predict or control market volatility, at Baron Financial Group we work on controlling the controllable and providing comprehensive wealth management services.   The value of our services may not always be obvious.  In fact, Vanguard agreed that there are hidden values to advisor services and consequently produced a paper in September 2016 outlining the not-so-obvious values of services advisors provide.  The paper focused on the following services:

  • Creating a suitable investment strategy that is broadly diversified
  • Cost-effective implementation (expense ratios for mutual funds and ETFs)
  • Rebalancing
  • Behavioral Coaching (keeping emotion out of investing and sticking to a strategy)
  • Asset location (what assets do best in what type of accounts)
  • Spending strategy (creating an order of withdrawal for your accounts)
  • Total-Return focus versus income investing

The Vanguard paper suggested that incorporating these services could add up to 3% of additional return.  Admittedly, it is not likely that this benefit is recognized for specific periods, but more over the entire time of the relationship as markets move through different cycles.  Proudly, Baron incorporates all of these services and more as part of our comprehensive wealth management services.  

Want to learn more?  Contact the Baron Financial Group Team.

Disclosure:  This material is not intended to be relied upon as a forecast, research, tax or investment advice.  Please consult your financial planning and tax professional for personal advice.