07/13/2026
Is hiring a financial advisor worth it or can I self manage my investments?
Vanguard's Advisor Alpha study found that working with a financial advisor can add approximately 3% in net value annually through areas such as portfolio construction, rebalancing, retirement income planning, and behavioral coaching.
To put that into perspective, if you contributed $200 per month for 30 years, a portfolio earning 7% annually would grow to roughly $244,000. If you captured an additional 3% annual value through better planning, tax efficiency, risk management, rebalancing, and behavioral coaching, bringing the effective return to 10% annually, the same contributions could grow to approximately $452,000. That's a difference of more than $208,000, despite investing the exact same amount every month.
What's notable is that this study wasn't measuring stock picking. The value came from helping investors make better decisions: maintaining a long-term strategy, managing risk, optimizing withdrawals and taxes, protecting against life's unexpected events, and avoiding emotional mistakes that can derail a financial plan.
In my experience, that's exactly where financial advice delivers the most value. Investments matter, but so does having a plan, managing risk, and making confident decisions that align with your long-term goals.
Financial advice is about much more than investment performance. It's about improving outcomes.
