Is it worth it to hire a financial advisor? Maybe . . . maybe not. It really depends on your situation, your ability and desire to manage your own retirement plan, and if the fees a financial advisor charges are worth the value they provide.

In this video, I break down four industry studies that (attempt to) determine the monetary value a financial advisor can add to your overall financial, investment, and retirement planning. These studies are from Morningstar, Vanguard, Envestnet, and Russell Investments.

In those studies which try to quantify the value a financial advisor adds, there are several consistent themes. For example, the best financial advisors will help you save money with tax-smart investing and strategies. They’ll keep you grounded in bear markets, and they’ll help you determine the appropriate investment strategy, asset allocation, and tax-smart asset LOcation. These retirement planning strategies are among many other things the best financial advisor for your situation should easily be able to help you with.

In the video, I explain in greater detail the value of financial advisor studies, the components of those studies, what the best financial advisors do and how financial advisors get paid.

Two of the slides have footnotes which are as follows – just google the text:

1. Morningstar “Alpha, Beta, and Now… Gamma” study August 28th, 2013
2. Vanguard “Quantifying Vanguard Advisor’s Alpha” study February 2019
3. Russell Investments “Value Of An Advisor” study 2022
4. Envestnet PMC “Capital Sigma: The Advisor Advantage” study February 2019
5. The average value of a financial advisor from the four studies referenced.
6. Not every one of these strategies will perfectly apply to your unique situation.
7. Average of Russell Investments and Vanguard studies
8. Average of Vanguard and Envestnet studies
9. Average of Vanguard and Envestnet studies
10. Average of Russell Investments and Envestnet studies
11. Envestnet study
12. Average of Russell Investments, Vanguard, and Envestnet studies
13. Average of Russell Investments and Vanguard studies


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