09/08/2026
To Pay A Fee, or Not To Pay A Fee?
Investors often ask whether working with a financial advisor is worth the cost.
It's a fair question. But the conversation shouldn't stop there.
At ThreePoint, we believe the real question isn't simply, "What does it cost?" It's "What value does a coordinated strategy bring to my overall financial plan?"
Many investors assume that managing investments on their own means investing for "free." In reality, most investment platforms, mutual funds, ETFs, and other investment products have costs associated with them, whether visible or embedded. Investment management is also just one component of a comprehensive financial strategy.
The value of working with a licensed advisor may extend beyond portfolio management and can include:
▶️Tax-loss harvesting opportunities
▶️Ongoing portfolio rebalancing
▶️Tax-efficient investment placement
▶️Risk management coordination
▶️Retirement income planning
▶️Estate and legacy planning
Research has found that tax-loss harvesting may create after-tax benefits for some investors. Vanguard research estimated annualized tax-loss harvesting alpha ranging from approximately 0.47% to 1.27% on the taxable equity portion of a portfolio under certain assumptions and conditions. Results vary based on factors such as portfolio composition, tax rates, investor behavior, and market environments.
Similarly, research published in the Financial Analysts Journal by Chaudhuri, Burnham, and Lo examined historical market data and found that tax-loss harvesting may create meaningful tax alpha when implemented consistently within a disciplined investment strategy.
At ThreePoint, we believe financial decisions should be coordinated rather than compartmentalized. Investment, tax, insurance, retirement, and estate planning strategies are often most effective when considered together as part of a broader financial plan.
When evaluating professional advice, investors should consider both the costs and the potential benefits of a coordinated planning approach based on their individual circumstances.
Because financial planning is about more than investment returns. It's about helping every part of your financial life work together.
Tax-loss harvesting and other planning strategies may not be appropriate for all investors. Results will vary. There is no guarantee that any investment or tax strategy will achieve its intended objective. Investors should consult with qualified tax and financial professionals regarding their specific circumstances.
Sources referenced:
🔹Vanguard Research (2024), Tax-Loss Harvesting: Why a Personalized Approach Is Important (Thomas Paradise, Kevin Khang, Joel Dickson).
🔹Chaudhuri, Burnham & Lo (2020), An Empirical Evaluation of Tax-Loss Harvesting Alpha, Financial Analysts Journal.
