Two studies found that working with a financial professional can result in higher returns and potentially lower personal stress.
Seventy-six percent of people within 15 years of retirement are stressed when thinking about retirement savings and investments.¹
Working with a financial advisor to develop a written retirement income strategy, however, can increase your confidence and happiness, according to Franklin Templeton’s annual Retirement Income Strategies and Expectations Survey.
With and Without
Confident with plan
Happy with plan
With an advisor
Without an advisor
In addition to providing financial guidance, financial advisors may also add about three percentage points in net portfolio returns over time, according to a study by Vanguard.³
Financial Advisor Advice Components⁴
Potential Added Return to Investor Portfolio
Asset allocation Asset location
Up to 1.2%
Rebalancing Drawdown strategies
Up to over 1%
Managing investor emotions Aiding decision-making
Up to 1.5%
It’s important to remember that financial advisors also may offer guidance that wasn’t measured in the two studies. Advisors can help develop strategies that protect against the financial consequences of loss of income, and coordinate with other financial professionals on tax and estate management.
Franklin Templeton, 2015
Franklin Templeton, 2015
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2015 FMG Suite.
This article was written for information purposes only and its content should not be construed by any consumer and/or prospective client as rebel Financial’s solicitation to affect, or attempt to affect transactions in securities, or the rendering of personalized investment advice for compensation. No client or prospective client should assume that any such discussion serves as the receipt of, or a substitute for, personalized advice from rebel Financial, or from any other investment professional. See our disclosures page for more information.
Phil Ratcliff, President of rebel Financial, is a senior financial advisor that holds an AIF®, CFP®, ChFC®, and CLU® certifications. He started his career at American Express Financial Advisors in 2003, then moved to AXA Advisors for 7 years before founding rebel Financial LLC in 2013.