#75. How credible are the purported benefits of financial advice?

05/18/21 • 76 min

Methodology on studies on the tangible and intangible benefits of working with a financial advisor.
In this episode, Aaron and Trishul examine research that tries to quantify the value of financial advice. High client retention rates imply that clients are happy. But how do you measure the value of advice? Past studies may have overstated the behavior gap. But recent studies provide additional insights beyond this singular metric. So don't forget about asset allocation, rebalancing, asset location, and tax-efficient investing. And beyond investing, perhaps it's the benefits from sound financial planning that make the biggest impact on happiness and well-being.
Episode References
Investing Forever - The Three Key Benefits of Sound Financial Advice
Investing Forever - The World's Most Expensive Hobby
Vanguard: Advisor's Alpha
Kitces: DALBAR study overstates behavior gap
A Simple Explanation for DALBAR's misleading results
Do Knowledgeable Investors Need a Financial Advisor?
Average Stock Holding Period on NYSEPodcast Description
Welcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.

Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Bay Area Financial Planner with GraystoneAdvisor.com, and Trishul is an East Coast Wealth Manager (InvestingForever.com). MindMoneySpectrum.com and YouTube.

Previous Episode

#74. This hidden benefit of financial independence changes everything.

These differences between Financial Independence and Retiring Early always get missed.
In this episode, Trishul and Aaron explore the benefits of Financial Independence unrelated to Retiring Early. Some people no longer work for money, some maintain their status quo, and others enjoy increased security and control. Even so, all these perks do not necessarily require Financial Independence. And there's no need to wait until retirement either to shift in your mindset. So perhaps the benefit of working with a financial advisor is to turn the fear of future unknowns into the comfort gained from knowing you are on track to live your best life.
Episode References

MMS #1. What's the big deal about FIRE?
The Power of Purpose and Meaning in Life
A hobby may stave off depression
Coast FIRE
Confessions of an Overnight Tech Millionaire
Financial Independence without Retiring Early
The Benefits of Feeling in Control as We Age
7 Reasons to Keep Working After Financial Independence
5 reasons to keep working after financial independence
Podcast Description
Welcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.

Next Episode

#76. Not all financial advice is created equal. Here's why.

All the different flavors of financial advice.
In this episode, Trishul and Aaron discuss the value of financial planning beyond just investments, such as taxes saved, utilizing retirement plans, and insurance analysis. They go over the pros and cons of working with an advisor who also sells the recommended insurance and investment products. This brings up the history of financial advice and the difference between fee-only, fee-based, and commission-only. No compensation structure is free of conflict or misaligned incentives. Even so, understanding the nuances involved can help you find an advisor that will put your interests first.
Episode References
MMS #75. How credible are the purported benefits of financial advice?
Investing Forever - Fiduciary Oath
Investing Forever - Where should you turn to for advice?
RIA
Broker-Dealer
Agent
FINRA Qualification ExamsPodcast Description
Welcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.