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In a study by YCharts, 66% of clients say that more frequent/more personalzed contact would give them more confidnce in their financial plan.
Contact provides confidence
Jounal of Financial Planning March 2020
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In a study of Americans over 50, successful planners—those who stuck with their plans—achieved an average total net worth three times higher than those who didn't plan.
Successful planning can help propel net worth.
Lusardi, Annamaria, and Mitchell, Olivia S., “Financial Literacy and Planning: Implications for Retirement Wellbeing," 2011
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A portfolio began with a 50/50 allocation to stocks and bonds, and was never rebalanced. Over the next five years, the portfolio drifted to a 60/40 allocation — and was positioned for larger losses in 2008 than it would have experienced if it had been rebalanced regularly. If left unattended, a portfolio can "stray" over time.
Regular rebalancing helps keep your portfolio aligned with your risk tolerance.
Schwab Center for Financial Research with data from Morningstar
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Over 20 years, markets went up and down—but a long-term investor who stuck to her plan would have been rewarded.
Progress toward your goal is more important than
short-term performance.
Schwab Center for Financial Research with data from Morningstar.
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Does your adviser act in your best interests? A fiduciary would. They must act in the best interest of their clients. Their loyalty is to the cleint. A non-fiduciary has loyalties to their firm and only has to make recommndations that are suitable.
What is a Fiduciary?
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Many clients prefer to have their affairs performed with centralized managment, having oversight of investments, tax planning, estate planning and business planning
One-stop access to a range of financial services.
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Maria and Ana each invested $3,000 every year on January 1 for 10 years—regardless of whether the market was up or down. But Maria started 20 years ago, whereas Ana started only 10 years ago. So although they each invested a total of $30,000, by 2017 Maria had about $30,000 more because she was in the market longer.
It pays to invest early
Schwab Center for Financial Research with data from Morningstar
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$3,000 is invested in the S&P 500 Index every year for 10 years, then nothing is invested for the next 10 years. Over 20 years, lowering fees by three-quarters of a percentage point would save Maria roughly $9,000 and Ana roughly $3,000.
Fees can eat away at your returns.
Schwab Center for Financial Research with data from Morningstar.
