Vanguard recently released research where the company attempted to quantify advisor value. Here are seven ways your advisor should be helping you:
1) Providing Proper Asset Allocation. Investment professionals should be very familiar with the Brinson study – research indicating that over 90% of institutional portfolios long-term variance from their indexes has been attributable to asset allocation, with selection, timing and all other variables accounting for less than 10%. The value of proper asset allocation based on an investor's time horizon, risk tolerance and financial goals is too unique to each investor to quantify, but is significant.