Value of an Advisor End Investor eKit (U.S.) - 2020

What can a financial advisor do for me? The sustained market volatility and uncertain economic outlook experienced in the spring of 2020 serves as a stark reminder of the value of working with a financial advisor. At Russell Investments we believe the biggest value that a financial advisor provides is as a behavior coach. As humans, we are vulnerable to behavioral biases—those emotional responses to market movements that have the potential to significantly impact our portfolios. Many of us were likely tempted to take our money out of the equity markets when they began to drop as the news flow on the novel coronavirus COVID-19 worsened. But doing so would have meant selling at a potential low point in the market, contrary to the tenet of successful investing: buy low, sell high. As we have seen time and time again, severe market declines are eventually followed by market rallies. A financial advisor can help mitigate emotional responses to the volatility, keeping you invested and on track with your plan. While that is likely the biggest value a financial advisor can provide, they do so much more. Even when markets are calm, or steadily rising as they had been for several years, financial advisors provide a variety of necessary services. A financial advisor can provide holistic wealth planning: from selecting investments, to managing your portfolio through different life changes, to retirement and estate planning. They can also provide guidance on reducing the tax drag on your portfolio so that you have a better chance of keeping more of what you make. We have developed a formula that can help you understand the value of working with an advisor. A Annual rebalancing of investment portfolios = Value of an advisor + B Behavioral mistakes individual investors typically make + C Cost of basic investment-only management + P Planning costs & ancillary services + T Tax-smart planning & investing 2 / Why work with a financial advisor?  / Russell Investments