The Mind Money Spectrum Podcast

#75. How credible are the purported benefits of financial advice?

May 18, 2021 Aaron Agte and Trishul Patel Season 2 Episode 23
The Mind Money Spectrum Podcast
#75. How credible are the purported benefits of financial advice?
Chapters
The Mind Money Spectrum Podcast
#75. How credible are the purported benefits of financial advice?
May 18, 2021 Season 2 Episode 23
Aaron Agte and Trishul Patel

Methodology on studies on the tangible and intangible benefits of working with a financial advisor.

In this episode, Aaron and Trishul examine research that tries to quantify the value of financial advice. High client retention rates imply that clients are happy. But how do you measure the value of advice? Past studies may have overstated the behavior gap. But recent studies provide additional insights beyond this singular metric. So don't forget about asset allocation, rebalancing, asset location, and tax-efficient investing. And beyond investing, perhaps it's the benefits from sound financial planning that make the biggest impact on happiness and well-being.

Episode References

Investing Forever - The Three Key Benefits of Sound Financial Advice
Investing Forever - The World's Most Expensive Hobby
Vanguard: Advisor's Alpha
Kitces: DALBAR study overstates behavior gap
A Simple Explanation for DALBAR's misleading results
Do Knowledgeable Investors Need a Financial Advisor?
Average Stock Holding Period on NYSE

Podcast Description


Welcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.

Show Notes

Methodology on studies on the tangible and intangible benefits of working with a financial advisor.

In this episode, Aaron and Trishul examine research that tries to quantify the value of financial advice. High client retention rates imply that clients are happy. But how do you measure the value of advice? Past studies may have overstated the behavior gap. But recent studies provide additional insights beyond this singular metric. So don't forget about asset allocation, rebalancing, asset location, and tax-efficient investing. And beyond investing, perhaps it's the benefits from sound financial planning that make the biggest impact on happiness and well-being.

Episode References

Investing Forever - The Three Key Benefits of Sound Financial Advice
Investing Forever - The World's Most Expensive Hobby
Vanguard: Advisor's Alpha
Kitces: DALBAR study overstates behavior gap
A Simple Explanation for DALBAR's misleading results
Do Knowledgeable Investors Need a Financial Advisor?
Average Stock Holding Period on NYSE

Podcast Description


Welcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.