Many investors underestimate the value of financial planning advice. A recent study by Vanguard found that advisers on average improve net investment returns by 3%. The study identified several ways advisers add value, including avoiding overtrading, providing a tailored plan and offering a wide range of technology, tools and knowledge.

Another way that advisors add value is by reducing investing costs through fee reduction strategies. For example, they may recommend using index funds to lower fees and increase returns. They might also help clients minimize taxes through tax-loss harvesting and other strategies. These strategies are especially valuable for high earners.

Maximise Returns with Expert Financial Advice: Tips from Professionals

Maximise returns with expert financial advice is often overlooked, but it can be highly valuable. Behavioral coaching helps prevent rash and emotion-driven decisions that can cost investors money. It can be especially helpful during periods of market volatility or when a client is facing major life events.

Financial planning advice also provides significant value through smart asset allocation. By carefully placing assets in tax-advantaged accounts, financial planners can significantly boost investment returns. They can also optimize retirement withdrawal strategies, guiding the process based on a client’s specific tax forecast.

Finally, a financial planner can help ensure that a client is using all of the strategies and savings opportunities available to them. For instance, a high-income professional might be able to save more by taking advantage of the tax benefits of 401(k) plans, cash balance plans and Backdoor Roth IRAs, or by utilizing a health savings account.