Australians who seek financial advice measure better off by 5.7%p.a.
According to Russell Investments' annual analysis, published in their 2024 Value of an Adviser report, the annual value a financial adviser in Australia provides stands at approximately 5.7%p.a. in 2024. This figure significantly exceeds the standard fees clients typically pay to advisers, underscoring the comprehensive service that advisers can offer, and advisers’ capacity to guide clients through evolving markets, regulations, and personal circumstances.
This assessment of adviser value is based on a formula that considers factors such as appropriate asset allocation, behavioural coaching, decision-making and trade-offs, expertise, and tax-savvy planning and investing. In a world where financial complexities abound, advisers continue to play a crucial role in helping clients secure their financial future.
The year 2024 has seen speculation of recession and mounting inflation cast a shadow of caution over investors, only four years after the global pandemic tested the resilience of financial markets and shareholders worldwide. In an increasingly intricate global landscape, financial advisers have continued to prove their worth by helping clients achieve their long-term financial objectives throughout these uncertain times.
In this challenging environment, Australians have leaned heavily on their financial advisers to navigate the practical and emotional complexities of investing. This relationship proves beneficial not only during market downturns but also in times of asset growth, bolstering portfolio gains.
It is important to recognize that financial advice encompasses more than just investment strategies; it demands a deep understanding of taxation, social security, and a keen insight into human behaviour, vital for assisting individuals in making life-altering decisions. Over the past year, advisers have demonstrated their competence in these areas, leaving their advised clients better off.
Source: Russell Investments “2024 Value of an Adviser”
