Robo-advisors are on the up. These digital platforms that provide automated, algorithm-driven investment services with little to no human supervision are cheap. But anyone who’s ever had home renovations would agree, “cheap” often ends up costing more in the end. After trying to save a quick buck, you often end up hiring a professional to fix the substandard results.
“A Rising tide floats all boats…only when the tide goes out do you discover who’s been swimming naked.” Warren Buffett
A financial advisor acts as your support system, keeping you accountable and on track to achieving your dreams. If you stick to the plan over a long period of time, together as a team with your advisor you’ll achieve your goals faster. In fact, working with an advisor has proven to increase wealth by up to four times over a fifteen-year period*.
When it comes to the market, emotions can be a huge threat to an investor’s financial health. If the market fluctuates, as it has in recent months, it’s unsettling and natural to look to take drastic action. This is where your advisor comes in, preventing you from making impulsive decisions by bringing you back to your goals and the long-term plan. Protecting capital in periods of falling markets can have a huge impact on the total return of an investment, especially over time.
When markets are humming along with no volatility in sight, investment performance is just one working piece of the bigger financial plan. But when the market experiences prolonged price declines, clients need confident and unwavering advice.
Whether it’s coaching you through market volatility, saving you tax or constructing your debt strategy, the cumulative value of even a handful of services an advisor provides far exceeds the fees you pay. The importance of all of this is transparency. Get clear on the value you’re getting from your advisor.
*Advisor Insights, FIC, May 2017