• Brent D Dickerson CFP® EA

Am I Worth It?

Updated: Nov 3, 2018

As an advisor I often have to explain to potential clients the value I add to their lives in exchange for the fee I charge. Occasionally my word for the value I add isn’t quite enough. Luckily, there are researchers out there doing the heavy lifting for me. I’ve talked about Morningstar’s study that estimates an advisor’s “gamma,” or increased return of a portfolio attributed to the consultant’s advice at somewhere are 1.8%. Another study recently published in the AFCPE’s Journal of Financial Counseling and Planning also supports the notion that an advisor is an overall benefit to anyone seeking to increase their wealth (Lei & Yao, 2016).

Photo by M. B. M. on Unsplash

Besides the 1.8% portfolio “gamma,” here are a few other value-adds that I offer that are supported by the recent published research:

1. Peace of Mind

2. Confidence in your financial future

3. Less speculative, and therefore less risky, investment choices

  • Less risky portfolios

  • More appropriate investments

  • Less speculation

With these benefits being attributable to having an investment advisor, why is it that only 26% to 38% of Americans employ a personal financial professional? Is it not worth it to hire someone that can increase your portfolio returns along with providing you emotional support? The answer seems clear to me, but I’m biased of course.

While there are many factors that go into the equation as to why someone wouldn’t want to use an advisor, economically speaking, it takes time and effort to build wealth. H.W. Charles, author of The Money Code wrote that “[w]ealth is a planned result that requires productive work and dedication.” Many Americans today simply don’t have the ability, or desire, to put forth the work and dedication to this. The paradox to this is that it takes less work and dedication to build wealth by entrusting that work to a personal finance specialist.

Its completely clear to me the path that should be chosen and I hope that that path is crystal clear to you too. When you are ready to seize the opportunity of having an affordable financial relationship that can help your outlook, confidence, and portfolio gains, I’ll be here.

Lei, S., & Yao, R. (2016). Use of Financial Planners and Portfolio Performance. Journal of Financial Counseling and Planning, 27(1), 93-108.

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