The Value of Hiring Human Investing
Choosing to hire a professional financial advisor can be one of the best decisions an investor can make. This complex decision requires answers to questions such as:
Am I willing to do it on my own, and can I be successful?
What value can a financial advisor provide?
What should I look for when hiring a financial advisor?
As advisors at Human Investing, we’re biased that most should seek the help of a professional advisor. Too many times we have seen investors have great intent but fail in the execution, whether investing on their own or hiring the wrong financial advisor.
When it comes to investing, the stakes are high.
Modern technology has made investing much more accessible, arguing that anyone can invest. E-trade’s 2008 Superbowl commercial claims investing is so easy a baby can do it.
E-trade is right, investing isn’t rocket science. But, for an investor, not knowing what the best opportunities are or how to avoid pitfalls can be costly.
A study done by DALBAR has shown that do-it-yourselfers can get by just fine but highlights the excessive cost of doing so. Investing on their own, the average equity investor has underperformed the stock market over the last 20 years, by -1.51% annually. The impact is worse for an average fixed-income investor investing in the bond market, at -4.26% (typically a conservative investor). While anyone can invest, most investors fall short of the returns they should be receiving. It could have been more valuable to just put your money in the S&P 500 or Barclays Index and let it ride.
Financial advisors can help navigate the ever-changing financial landscape.
There are plenty of cookie-cutter options that try to make investing more approachable, but there is no one-size-fits-all financial plan. A financial planning firm, like Human Investing, takes the complexity and optimizes it for the benefit of the investor and their family. Human Investing has the technology and expertise to build and execute the most complex financial plans.
We have witnessed the value provided by working with a financial advisor time and time again. Vanguard has found a way to substantiate some of our observations. Vanguard’s study titled “Advisor’s Alpha” quantifies that the value of working with a financial advisor can on average provide an additional 3% in value.
a good financial advisor goes beyond YOUR stock portfolio.
While 3% cannot be expected annually, the study does identify the long-term value of partnering with a trusted financial advisor such as Human Investing.
So far, my focus has been on investments, however, a good financial advisor’s value is more than traditional investment advice and management. An advisor that provides comprehensive financial planning can help construct your entire financial picture.
so what does it look like to work with us?
Hiring a good financial advisor can be one of the best decisions an investor makes. To add to the complexity for investors, many professionals call themselves a “financial advisor,” however choosing the wrong one can cause more harm than good.
We are a Fiduciary. We are legally bound to always act in our client’s best interest. That means no commissions or selling pressure. Professor Kent Smetters of the Wharton School of Business notes fewer than 2% of all financial advisors are Fiduciaries.
We believe that trust is earned from accountability and transparency. Whether someone has one dollar or one billion dollars, they should be offered the highest standard of care.
Our clients are hardworking, passionate, and motivated. We share the same standards when it comes to financial planning and service and equip our advisors with the highest level of credentials to serve our clients.
Each investor’s financial situation is unique, shouldn’t the advice they receive be as well? We listen before we advise, like a trusted doctor diagnoses before they prescribe.
there is no substitute for expertise.
Hiring a professional can be daunting, but their knowledge and skill are irreplaceable. As mentioned earlier, it's been beneficial for investors to hire an advisor. But beyond portfolio performance, a reliable financial advisor brings peace of mind, reduces stress, and allows you to focus on what truly matters.
