What's the true value of financial advice?

The latest Value of an Adviser Report from Russell Investments estimates professional advice delivers an estimated 4.52% in annual value to New Zealand investors.

This is more than four times the typical 1% fee advisers charge.

Now in its fifth year, the report quantifies the tangible and behavioural benefits advisers provide, using Russell Investments’ long-standing “A + B + C + E” formula:

• Asset allocation (0.20%) – keeping investors appropriately diversified and fully invested.
• Behavioural coaching (3.57%) – helping clients stay the course during volatile markets.
• Customised family wealth planning (0.75%) – providing holistic, personalised strategies.
• Emotional and technical expertise (Priceless) – offering reassurance and human connection through life’s difficulties and key transitions.

“In a year marked by economic uncertainty and market shifts, advisers once again proved indispensable,” said Neil Rogan, Head of Distribution – NZ and Australia at Russell Investments.

“Our report shows that professional guidance delivers both measurable returns and immeasurable peace of mind, both of which matter deeply to investors”.

That guidance also translates to real-world results. According to the report, advised retirees are twice as likely to retire before 65 compared to those