For the 20th anniversary of 9/11, we had the privilege of hosting over a dozen combat-wounded veterans at our home. It was a moving experience, to say the least. At the same time, it provided a joyous celebration of learning to thrive amidst tough circumstances, a somber opportunity for reflection on the challenges of the past two decades and the present day, and a sobering reminder to count our many blessings before counting our struggles and disappointments.
It also made me reflect on the power of actions over words. A recent 2021 Russell study on the “Value of an Advisor” estimated the value of having an advisor in the US in 2021 to add, on average, ~4.83% in overall returns. Russell further broke that 4.83% down into 5 primary pillars of advisor value creation, reminding us of the most productive actions advisors can take in contributing to their clients’ success in a magnitude that far exceeds the typical advisory fee.
The study cites the following five pillars as the primary areas where advisors create value, and attributes the following contribution to the 4.83% value creation total:
A: Active rebalancing of advisory portfolios (0.17%)
B: Behavioral Coaching (2.02%)
C: Customized Client Experience and Planning (0.82%)
P: Product Alignment (0.62%)
T: Tax-Smart Planning and Investing (1.20%)
As advisors shift to the “call-me-after-Labor-Day” period of productivity
ahead, a refreshed audit of how these capabilities, offerings, and examples
play out in your practice should provide a refreshed highlight reel that
demonstrates your value proposition through actions, rather than
promises.
Christy Charise, Founder & CEO of Strategic Advisor