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PRICE is what you pay. VALUE is what you get. ALPHA is the difference.

VALUE

WHAT IS VALUE?


Advisor Value is the consideration that a financial advisors work is important, beneficial or useful.

Financial advisors are not all the same and the value proposition of the traditional advisor is evolving.  Clients need to understand the value an advisor offers and they deserve more value for what they are paying. 

In this 2018 Millionaire Outlook Study, Fidelity seeks to define how do advisors "add value" and where clients get the most value. Modeling Maslow's hierarchy of needs, The "new" Fidelity Advisor Value Stack progressively illustrates value in four basic categories.  

Where would you get the most value from a paid financial advisor?

What should you be getting from an advisor?

What MORE should you be getting from an advisor?

ALPHA

Client Centered

Investment Alpha is considered the active return on an investment. It gauges the excess performance of an investment against a no-cost market index or benchmark.

With a similar line of reasoning, Advisor Alpha gauges the value added by the use of a financial advisor. The Putting a value on your value: Quantifying Vanguards Advisor Alpha study seeks to explain and quantify the experience of investors who use an advisor in comparison to those who don't.  

  • This does not suggest that every advisor— charging any fee—can add value. Like any approximation, the actual amount of value added may vary significantly, depending on clients’ circumstances.
  • This paper takes the Advisor’s Alpha framework further by attempting to quantify the benefits that advisors can add by providing these services, either individually or in combination.



How Vanguard calculates Alpha?

PRICING

FRAMEWORK ACCESS

Get access to the tools and resources you need to lead a better financial life for a one-time fee of $300 (set-up) and $30 a month for Access. Cancel anytime. This fee may be waived if a client is also engaged in Financial Planning and or Financial Management. 

FINANCIAL PLANNING

Get access, analysis and advice from a qualified financial professional. A planning relationship generally ranges $500-$2500 depending on the circumstances. Planning fee's may be waived at the discretion of the advisor.

FINANCIAL MANAGEMENT

As independent advisors and fiduciaries we can help you navigate the complicated world of investments and products to help you implement solutions that are in your best interest. Financial Management consists of but is not limited to the implementation of fee-based asset management, fixed insurance products and variable insurance products. Asset Management fees typically range from 0.50% to 1.35% of the portfolio value. Insurance and annuities vary by product and company.