South City relies heavily on data to drive our decision-making processes. There is mounting evidence that highlights the value added by working with a competent financial planner. Vanguard, the worlds’ largest index investment firm, estimates that the value added is as much as 3 percent per annum. This would not be achieved on an annual basis, but rather in a “lumpy” fashion. Vanguards’ research determined the value add as a “behavioural coach” to be 1.5% of the 3%.
Morningstar calculated the value add to be 1.82% because of improved financial decision making – due to behavioural changes. Research undertaken from 2009 – 2010 found that the benefit clients achieved through a financial planner during this extreme volatility was 2.92% annually, net of fees.
Numerous studies across the world confirm the ability of a skilled financial planner to positively influence investor behaviour. South City continues to strive to place our clients’ needs first and our ongoing research into this crucial area will continue to benefit our clients going forward.