Top 10 Lessons on the value of Financial Advisors

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Russell Investments has always believed in the importance of financial advisors. We see your role as a trusted guide who helps clients navigate their investing journey through turbulent market conditions, major life changes, and shifting goals and needs. Your expertise provides significant value at every step.

For the past 10 years, our study has measured that value using a simple formula and each year, the conclusion remains the same: the value you deliver consistently exceeds the fees you charge.

As a result of this decade of analysis, we’ve uncovered powerful insights into how your role continues to grow and evolve.

Here are the top 10 lessons we’ve learned in the last 10 years about the expanding value proposition of financial advisors:

An advisor’s role is constantly changing. In our first study, an advisor was essentially a broker: selecting investments for clients and developing a financial plan. Now, most advisors are expected to provide comprehensive wealth planning for entire families. That advice can encompass everything from insurance needs, custom requests, or legacy and charitable planning.
Portfolio rebalancing and asset allocation is important. Annual rebalancing is a vital part of the value advisors provide investors because it’s designed to help them avoid unnecessary risk exposure. Many investors don’t rebalance if left to their own devices.
Investors are ruled by their emotions. Investors are prone to react emotionally to the market’s movements. And that often means they act against their own best interests unless they are guided by an advisor.
Everyone wants to feel special. We all enjoy getting things our way. There is a growing demand from investors for a more personalized client experience and an investment portfolio that reflects their unique goals, circumstances, and preferences.
Planning is an ongoing process. Planning, done correctly, is not a one-time step. Advisors are continuously adjusting plans to align with a client’s changing needs.
Teamwork makes the dream work. As the expectations for personalized service increase amid the growing complexities of client needs, advisors are developing a network of experts to help build comprehensive long-term plans.
Style and cadence of communication matters. Investors prefer frequent and personalized communication with their advisors. They appreciate being kept informed about how their portfolio is helping them reach their desired financial goals.
Model portfolios increase efficiency. All these extra services take time and energy. As advisor roles change, the use of model portfolios is increasing.
No one likes paying taxes. Tax-aware planning and investing can help reduce the impact of taxes on a portfolio so that more money remains available to grow. Wealth management is personal.
No client is the same. Personalized wealth management will adjust service, education, appreciation and investment recommendations for each investor. This is key to consistently work to enhance client satisfaction, confidence and loyalty.

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These views are subject to change at any time based upon market or other conditions and are current as of the date at the top of the page. The information, analysis, and opinions expressed herein are for general information only and are not intended to provide specific advice or recommendations for any individual or entity.

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