Whoa! Here’s an Easy Way to Add 3.75% Onto Your Clients’ Returns

If your clients ever want to know why paying your fees are worth it to them… Vanguard Mutual Funds gave you the ultimate proof.  A report by Vanguard called “Putting a Value on Your Value: Quantifying Vanguard Advisors Alpha” makes the case that people working with advisors will make an additional 3.75%!  Thank you Vanguard!  It makes us look like a steal to the client.

The paper illustrates that the advice of a competent advisor increases an investor’s return by:

  • Making clients “stick to the plan” an advisor will, on average, add an additional 1.5% annually to a client’s return.
  • Appropriately distributing a client’s assets between taxable and tax-protected vehicles can add an additional 0.75% a year to a portfolio’s return.
  • Paying attention to product fees can add another 0.45% to the return.
  • Regularly re-balancing a client’s portfolio adds another 0.35% annually.
  • Laying out a well thought out income (spend-down) plan can potentially add another 0.7% to the annual return.

Add those up and you get 3.75%.  So any fee we charge seems like a steal in comparison!

Click here to read the paper

About Mike Kaselnak

Michael Kaselnak is considered one of the top marketing and sales experts in the financial services industry. He has personally mentored over 300 financial advisors in the past 10 years. These financial advisors saw their average production increase by 62%. Many saw increases of over 300 percent. He writes articles that have appeared in many mainstream magazines and has written the popular report 300 Financial Headlines that sell.
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