At Hill Investment Group, we believe in helping our clients take the long view when it comes to their financial well-being. But what does that mean in practice? It’s about more than just numbers; it’s about finding strategies that improve your financial outcomes and give you peace of mind.
Quantifying the Impact of Financial Advice
Several research studies have attempted to quantify the value of good financial advice. Vanguard estimates the impact at up to 3% per year, calling it “Advisor’s Alpha.” Morningstar refers to it as “Gamma,” measuring it at 1.59% per year for retirees. While the terminology may differ, the consensus is clear: thoughtful, evidence-based financial advice can significantly enhance your financial outcomes over time.
At Hill Investment Group, we believe this value goes beyond just dollars and percentages. It’s about guiding you through market fluctuations, life changes, and financial decisions with a steady hand, always focusing on the big picture.
The Behavioral Factor: Turning Plans into Action
One of the most overlooked benefits of working with a financial advisor is ensuring that the plan actually gets implemented. Most people know they should save more, spend wisely, and avoid emotional investing decisions, but turning intention into action is another matter entirely. This is where Hill Investment Group comes in—providing the support, coaching, and accountability needed to take the long view and stay the course.
The “Compared to What” Problem
Measuring the value of financial advice isn’t straightforward. It’s one thing to compare two specific strategies and determine which is better. It’s another to assess how much value a financial planner adds in the abstract, especially when we can’t know how someone would have behaved without the advice.
For example, a strategy that maximizes wealth might not be best if it leaves you feeling anxious about potential losses. What truly matters is how well a strategy aligns with your goals and risk tolerance. A financial plan that looks perfect on paper might not be ideal if it keeps you up at night. At Hill Investment Group, we focus on strategies that not only work on spreadsheets but also fit seamlessly into your life.
More Than Just Portfolio Management
Financial advice goes beyond portfolio management. It touches on various areas like tax planning, insurance, estate planning, and retirement strategies. And while some benefits, like tax savings from effective asset location, are easier to quantify, others, like peace of mind from knowing your financial house is in order, are invaluable.
The Bottom Line
At Hill Investment Group, we believe that the true value of financial planning is not just in the strategies recommended but in their execution and alignment with your personal goals. It’s not just about achieving higher returns or paying less in taxes—it’s about living a life where your finances support your well-being and aspirations. That’s the essence of taking the long view.
