Financial Advice
What is the Value of Financial Advice?
Does using a finance professional improve your portfolio and financial planning? A recent study¹ by the world’s largest mutual fund company known for low cost investing put a numerical value on expert financial advice. They found a professional advisor can potentially add up to 3% in net returns over time when working with an advisor and following a set of best practices for wealth management.
Diversification among asset classes can take a portfolio so far. Our advisors in the Centennial, Littleton and Parker area differentiate themselves and our investment management using these additional principles.
- Maintaining a long term, disciplined approach. Financial advisors act as coaches to help their clients to see the big picture and evaluate the portfolio in a long term context. Our investment strategy is best seen in a three-year time frame. Doing so keeps emotion to a minimum and maintains a disciplined approach.
- Maintaining a cost effect investment strategy. Our portfolios focus on reducing trading costs and custodian fees by having the advisor pay for these fees. Our advisors use individual stocks, low cost ETF’s and low cost bond funds to reduce operating expenses. Our management fees drop with the size of the portfolio. Paying less means greater returns for your portfolio.
- Rebalancing. Portfolio allocations can change due to market fluctuations. Advisors rebalance a portfolio to keep it within the original allocation and risk parameters agreed upon on account set up and annual reviews.
- Developing and Implementing a Spending Strategy. A financial professional will create a disciplined strategy to minimize taxes and prolong the investment to ensure the client will not outlive the portfolio.
- Total return vs. Income investing. Our advisors will balance a portfolio to create lifelong income and maintain growth for the long term.