It is difficult sometimes for folks to grasp just how valuable financial advice is when look at the dollar amount associated with getting that advice. Sometimes I have likened it to me visiting my preventative health doctor. What is it worth in dollars to "not get sick." It is hard to know but safe to say, that it is substantial.
That said, there have been some good efforts and quantifying it, most notably, a study by Vanguard. They unfortunately called it, Advisor's Alpha, which means nothing to most folks. They claimed that the value of the financial advisor was worth 3% a year net of fees. If that is true, that is big. You can download the study for yourself by clicking here.
One of the advisory community's thought leaders is Michael Kitces of the blog Nerd's Eye View. He also took a stab at quantifying the value a while back. Michael gave us permission to share a summary with you. Check out this chart and let us know what you think. Is this compelling to you?