What a financial adviser can add to your portfolio’s returns.

Financial planning has seen significant growth over the past two decades because, as a rule, it works. Unfortunately, there are exceptions that have left the public’s perception of the industry in very poor shape. Even trust, the most powerful tool a planner has is diminishing.

Given the following research I can’t understand why the industry isn’t pushing back with all its might.


A 16 year study by Vanguard (latest report from July 2018) has found that this figure is about 3% net added to a portfolios return.

This is significant and is over and above what might be generated by non-planner assisted investment activity. This means that even for small investors, a financial planner will, in most cases, pay for themselves. Added to this is the professionalism, clarification, performance and peace of mind they provide as part of their service. Inputs and outcomes that are hard to achieve when an investor does this job independently.


It is a Planner’s ability to provide long-term help that’s really important not the odd bad example the regulators and press want us to believe is more the norm. This is not to diminish the work of regulators nor am I saying some people shouldn’t go to jail, they should. But the lack of industry fight has allowed free reign to the sort of sensationalist and negative stories the press loves to run. Stories that focus on a few instances while thousands of others are benefiting, but who’d know.

Not putting up a fight means the ‘actual client’, current and potential, will be the loser in the long run. Also the tax payer will lose as they will have to foot an Age Pension bill that could be smaller. Finally, if planners can ease the tax burden on future generations then that helps overcome one of their greatest fears about the future as well.

So many good outcomes to aim for.

Peter Graham

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