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How to articulate your value to your clients


The annual Russell Investments Value of an Adviser Report estimates there’s major gains to be had for investors who work in partnership with a financial adviser.  But getting your clients to see this isn’t always easy.

The report shows that an investor gains a minimum of 4.4% p.a. when engaging with an expert.  This is a key marker of success that could be relayed to potential and existing clients when their worries creep in. But what else can you articulate to prove your worth?

1.  The benefits of rebalancing

How many times have you had people come to you after managing their own investments, only to reveal they let them drift and things are tanking?  When left to their own devices, investors can turn a once balanced index portfolio into a potential risk disaster.

Knowing how to properly rebalance a key value add you should explain upfront to help your clients see the benefits of working with you.

2.  That you need a cool head in times of crisis

Reactions to short-term market volatility is common among self-investors and often comes at a cost. Russell Investments’ statistics show the average fund investor’s desire to chase past performance cost 1.9% p.a. from 1984-2018.

Advisors can play a critical role in keeping their clients financially on track.  This includes helping them to understand the market, reminding them of their long-term strategies and keeping a cool head in times of crisis.

3.  When to play safe (and when not to)

It may come as a surprise to learn that younger investors are more risk averse than older investors, with research showing that investors under 35 were actively seeking out more stable options.

Educating your clients on the best financial strategies for their life-stage is one of the most important roles of a financial advisor.  Articulating that is crucial to them understanding (and accepting) your value, while also increasing their own.

4.  That you can help them plan ahead

Offering ancillary services like estate planning, investment and cash flow analysis, retirement income planning and assistance with annual tax return preparation are some of the other ways you can get your clients to see the value in taking on a financial advisor. Not only are you helping them increase their long-term wealth, you’re helping them plan for the future, too.

5.  The winning tax formula

Russell Investments estimates the value of an adviser to their client for tax-related savings to range between 0.9%-1.2%p.a. depending on whether the client is in an accumulation or transition-to-retirement phase.

Helping your clients get the most out of their tax circumstances while avoiding any nasty surprises is of huge value.  So if you offer tax services, be sure to articulate that too.


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