When people think about hiring a financial advisor, they often focus on one question: Can my advisor outperform the market?
In reality, the greatest value of a trusted advisor often has little to do with picking the next winning investment.
A recent study by Russell Investments, now in its 13th year, estimated that comprehensive financial advice may provide as much as 4.92% of annual value through a combination of investment management, behavioral coaching, tax-aware investing and personalized financial planning. Importantly, Russell notes that this is not an expected investment return or guaranteed "alpha," but rather an estimate of the potential value created by thoughtful financial advice.
According to the study, advisors create value in several key ways:
- Behavioral coaching – Helping investors stay disciplined during periods of market volatility instead of making emotional decisions.
- Tax-aware investing – Coordinating investment decisions with tax planning to help improve after-tax returns.
- Personalized financial planning – Guiding families through retirement, estate planning, charitable giving, education funding and other major life decisions.
- Asset allocation – Building diversified portfolios that balance risk and return rather than relying on concentrated positions or excessive cash.
While markets will always fluctuate, these areas are often where advisors make the biggest long-term difference. Good financial planning isn't just about selecting investments—it's about helping clients make better decisions throughout their financial lives.
At Sugden Wealth Management, we believe successful investing comes from combining disciplined portfolio management with comprehensive financial planning and ongoing guidance. While no advisor can control markets, we can help clients stay focused on what they can control: diversification, taxes, spending, risk management and long-term discipline.
Source: Russell Investments, "Value of an Advisor," 13th Edition (2025). The study estimates the potential value of comprehensive financial advice and is not a guarantee of future investment performance or investment returns.
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