Biblical Wisdom on Hiring a Financial AdvisorSubmitted by Miller Premier Investment Planning, LLC on August 5th, 2016
You might be wondering what the Bible tells us about the value of hiring an advisor to help with important financial and investment decisions. The answer can be found in proverbs 15:22. It says plans fail for lack ofcounsel but with many advisers they succeed.
Important research by Vanguard backs this up. They recently found that experienced independent fee only advisors provide not only peace of mind but can add three percent or more to annual returns over time and that can really add up! A big part of this value comes from financial coaching built on the foundation of a solid investment plan to avoid the common emotional traps of buying high and selling low. Over the 20-year period ending December 31st 2014 Dalbar found that while the stock market earned a compound average annual return of 9.9% the average U.S. stock investor earned only 5.2%.
To put this difference in perspective let's look at Joe. Joe works with his advisor and invests $250,000. He watches it grow over the next 20 years at 9.9% to $1,651,558. If on the other hand he had decided to go it alone he would have only received $689,056 dollars at 5.2% mainly due to market timing, higher expenses, and transaction costs. In other words going against biblical wisdom could cost Joe almost 1 Million Dollars on his $250,000 investment and more importantly put his retirement at risk!
Joe's story is a hypothetical representation of the Dalbar study and is meant only to illustrate how proper financial planning can increase your return on investment. If you would like to learn more about how we can help you with your specific situation give us a call today at 817-680-8198.