Advice is more than just financial planning; it's life planning. The emotional and time value of advice isn't just a bonus but a key part of living a confident, balanced, and purpose-driven life.
The emotional and time value of wealth advice
Recent Vanguard research (PDF) shows that professional advice provides significant emotional support and time savings, helping clients navigate complex financial decisions with confidence and peace of mind.
Getting one-on-one guidance is especially helpful when you’re having important conversations about legacy planning, passing on family values, and ensuring future generations' well-being. This level of personalized, professional support can add significantly to your sense of preparedness and peace of mind.
Working with an advisor also helps optimize your time and resources so you can focus on the things you enjoy, knowing your wealth is being managed with expertise and care.
Beyond the numbers: A holistic framework for advice
Vanguard's four-part value framework for financial advice is designed to provide a holistic approach to wealth management, addressing both the quantitative and qualitative aspects.
Portfolio value and emotional value are the top reasons why people sign up for advice
Notes: The survey question asked respondents, “What were the initial reasons why you signed up for financial advice? Select all that apply.” The options given were portfolio value (investment selection; portfolio monitoring), emotional value (peace of mind), financial value (tax-efficient planning and investing; goal-setting and progress monitoring), and time value (to save time).
Source: Vanguard.
Portfolio value focuses on maximizing after-tax wealth through sophisticated strategies like tax-loss harvesting1 and retirement income optimization, including drawdown and required minimum distribution (RMD) strategies. These techniques ensure that you're both growing your wealth and retaining more of it by minimizing tax liabilities and efficiently managing cash flows during retirement.
Emotional value is another critical component, as a dedicated advisor relationship provides greater peace of mind and confidence. Knowing you have a trusted professional overseeing your financial affairs helps reduce stress and anxiety.
Financial value extends beyond portfolio performance to encompass comprehensive planning—including legacy and estate planning—as well as trust services. This helps you achieve meaningful goals, whether it's funding education for grandchildren, structuring your approach to charitable giving, or ensuring a smooth transition of assets to the next generation.
Time value is about reclaiming valuable time by delegating complex financial tasks to a team of experts. This lets you concentrate on your passions and personal commitments, with peace of mind that your financial goals are being thoughtfully supported.
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While the financial and portfolio values of paying for advice are generally well understood, our research shows that the other benefits are significant for advised clients, and worth exploring in greater depth.
Emotional value: Increased confidence and security
Working with experienced advisors can transform the way high-net-worth investors approach complex financial decisions. Financial professionals bring a wealth of knowledge and a clear, strategic perspective, helping clients navigate the intricacies of investment choices, tax implications, and long-term planning with confidence.
While just 74% of people cited peace of mind as a motivation when they first signed up for advice, the number of advised clients who reported greater peace of mind after enrolling was substantially higher.
Note: The survey question said, “Compared to managing my finances on my own, having an advisor/digital advisor service gives me (a lot less, less, neither more nor less, more, a lot more) peace of mind.”
Source: Vanguard.
This sense of security is invaluable, especially when facing market volatility, uncertainty, or significant life changes.
It's important that an advisor-client relationship is built on a foundation of trust, empathy, and shared values, particularly when you’re discussing your estate plan and legacy. These conversations often touch on deeply personal and emotional topics, such as family dynamics, philanthropic goals, and your vision for future generations. A trusted advisor can provide the support and understanding you need to make these decisions with clarity and care.
As shown below, more than 75% of investors working with a financial advisor feel a notable reduction in anxiety, worry, sadness, and disappointment when it comes to managing their finances. Instead, they report feeling more confident, satisfied, secure and proud.
Notes: The survey question asked respondents, “Since you started meeting with your advisor/digital advisor service, indicate to what extent your emotions regarding your finances have changed.” Possible answers were “I feel less,” “I feel the same,” or “I feel more.” The overall measure is defined as the percentage of respondents who reported an increase in more positive emotions than negative emotions or who experienced a decrease in more negative emotions than positive emotions.
Source: Vanguard.
Reclaiming time for what matters most
High-net-worth investors often face the challenge of managing significant wealth and making intricate financial decisions that require a deep level of expertise and attention. By partnering with a team of professionals on these complex tasks, 76% of advised clients report that advice saves them time, with a median time savings of 2 hours per week, or about 100 hours per year.
Note: The survey question asked respondents, “Compared to managing my finances on my own, having a financial advisor/digital advisor (saves me time/does not save nor cost me time/costs me time) thinking about and dealing with my finances.”
Source: Vanguard.
Working with a trusted advisor not only ensures your financial strategies are carefully managed, but also frees up valuable time and mental energy so you can focus on what matters most to you.
By aligning financial strategies with their clients' core values, Vanguard advisors ensure the decisions they make aren't just about maximizing returns but also about enhancing a client's quality of life and achievement of meaningful goals. Our personalized wealth solutions, estate planning, and trust services are designed to reflect clients' deepest priorities, so that their legacies can truly reflect their beliefs and aspirations.