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
Hot Issues
- ATO encourages trustees to use voluntary disclosure service
- Beware of terminal illness payout time frame
- Capital losses can help reduce NALI
- Investment and economic outlook, August 2024
- What the Reserve Bank’s rates stance means for property borrowers
- How investing regularly can propel your returns
- Super sector in ASIC’s sights
- Most Popular Operating Systems 1999 - 2022
- Our investment and economic outlook, July 2024
- Striking a balance in the new financial year
- The five reasons why the $A is likely to rise further - if recession is avoided
- What super fund members should know when comparing returns
- Insurance inside super has tax advantages
- It’s never too early to start talking about aged care with clients
- Capacity doubts now more common
- Most Gold Medals in Summer Olympic Games (1896-2024)
- SMSF assets reach record levels amid share market rally
- Many Australians have a fear of running out
- How to get into the retirement comfort zone
- NALE bill passed by parliament
- Compliance focus impacts wind-ups
- LRBA interest rates increase for 2025
- Income-free areas set to increase from 1 July
- Most Spoken Languages in the World
- Middle-to-higher incomes boosting SMSF growth
- Investment and economic outlook, May 2024
- Transitioning into retirement: What you should know
- Plan now to take advantage of stage 3 tax cuts
- Deeming freeze a win for Age Pensioners
- Downsizer contributions can be time critical
Article archive
- April - June 2024
- January - March 2024
- October - December 2023
- July - September 2023
- April - June 2023
- January - March 2023
- October - December 2022
- July - September 2022
- April - June 2022
- January - March 2022
- October - December 2021
- July - September 2021
- April - June 2021
- January - March 2021
- October - December 2020
- July - September 2020
- April - June 2020
- January - March 2020
- October - December 2019
- July - September 2019
- April - June 2019
- January - March 2019
- October - December 2018
- July - September 2018
- April - June 2018
- January - March 2018
- October - December 2017
- July - September 2017
- April - June 2017
- January - March 2017
- October - December 2016
- July - September 2016
- April - June 2016
- January - March 2016
- October - December 2015
- July - September 2015
- April - June 2015
- January - March 2015
- October - December 2014
April - June 2019 archive
- Recession on our mind
- What it will take to close the super gap between men and women
- Australia - How are we going as 2018-19 ends?
- LRBAs, guarantees in need of review after property market falls
- Average age for establishing SMSFs sitting at 48.9: Report
- ATO updates valuation guidelines for pension reporting
- ATO figures show jump in starting balances for SMSFs
- Your personal financial register
- Australia’s $4bn Super blackhole impacting self-employed most
- The proper help can be a benefit - age pension
- SMSFs on ATO’s radar in cryptocurrency review
- Limited recourse borrowing arrangements - LRBAs
- What a financial planner does to help.
- Goodbye to ad-hoc portfolios
- Wanted: More voluntary super contributions
- Australia by the numbers – May Update
- Federal Budget 2019 - Overview
- How the 2019 Federal Budget affects you
- The problem with getting to 53 years of age.
- Paying for health care in retirement
- Personal super contributions and the 10% test
- What investors can expect as key moves affecting markets await
- ATO flags PAYG obligations for SMSFs with legacy pensions
- Don't just plan for retirement; Plan for your life
- Consumers misunderstand types of advice
- Budget Time - How's Australia going?