Description

“Price is what you pay, but value is what you get.” - Warren Buffett

What’s the marker or gauge to value financial advice? How do investors value the benefits they receive when working with an advisor or advisory firm?

When working with an investment & planning service provider, so much of the value provided is intangible, making it difficult to quantify. At the same time, it’s crucial to be able to evaluate the service so that you can ensure you’re satisfied with the value you receive.

In this episode, Marcelo and Keith explore the concept of value of financial advice by looking at how it has been historically valued, and then introducing an evaluation framework called the 4 Cs of value of advice. This framework will help today's investors evaluate value in a world of expanding wealth management needs.

How to evaluate investment & planning advice:

• Understanding how to value intangibles like professional services (3:05)
• Three ways financial advice was valued historically (4:27)
• What research shows about active vs. passive investing (5:57)
• The evolution of financial advice (7:43)
• The 4 Cs framework (competence, coaching, convenience & continuity) for evaluating the value of financial advice (8:44)
• Characteristics that show competence in investing, retirement & estate planning, and tax services (10:16)
• How investors can benefit from getting good coaching from their advisor (14:11)
• What convenience looks like in financial services (17:28)
• The value-add brought by continuity for investors (19:16)
• Outcomes for investors who get the 4 Cs (22:17)
• Our key takeaways (24:36)
• And much more!

Thanks for Listening!

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