Financial advisers not only act as an emotional circuit breaker, but also help clients plan effectively. Vanguard have now estimated that the value of that financial planning advice is 3% above what a client could achieve if they opt against the professional planning route.
However, Mr Cowell said the single biggest area where advisers can showcase their worth is in behavioural finance: the ability to prevent clients from making common investment mistakes Speaking in Newport, South Wales, Mr Cowell said: “Left to their own devices, clients fall foul time and time again. People chase performance even though it rarely lasts. It is alarming but it is true. “Not only do they chase, but they get there too late – typically between 1.5 per cent and 2 per cent too late. Financial advisers have the opportunity to be that emotional circuit breaker.”