Professional financial advice, what does it get me?

You have the right to expect real added value, which far exceeds the rate of return on your investments.

The value of financial advice is regularly questioned, since expectations are high of these professionals whose role is crucial in the management of personal finances and financial security. It is no coincidence that they are rigorously regulated: their responsibilities are great and consumers must be well protected.

Researchers looked at the question and quantified the contribution of financial advice in the field of investment. They have shown that investors who work with an advisor accumulate net worth 1.7 times higher after four years, and four times higher after 15 years1.

For what ? Because thanks to their advisor, these investors have made more informed and profitable financial decisions, and have also developed better saving and investment habits.

According to the same study, the adoption of financial discipline allows you to save more, and is the key to improving the value of your assets and staying on course for your goals. Also, the savings rate of those who do business with an advisor goes up 10.8% compared to 6.7% for non-counselors2.

Beyond the numbers

We understand through these conclusions that financial advice is a matter of learning, support and behavioral coaching. What you have the right to expect from a professional therefore goes far beyond the choice of an investment instrument adapted to your situation:

  • Learn to save more and more regularly;
  • Make informed choices and avoid costly mistakes, even fraudulent traps;
  • Improve their level of financial literacy;
  • Do not be influenced by rumors and received ideas;
  • It reduces their tax burden;
  • You get some peace of mind because you know you are prepared to face the vagaries of life, etc.

Keep a cool head in tough times

Since managing emotions is particularly difficult for most investors, financial advice is also particularly important during times of crisis and uncertainty.

Take the recent stock market crash in the spring of 2020. Despite the winds of panic, financial advice professionals knew that the best strategy was in most cases to stay invested in the market and then take advantage of the rebound that wasn’t going well. failure to occur. This is what they suggest to their customers, who have taken advantage of it a few months later. They also dampened the enthusiasm of those who wanted to be tempted by risky strategies.

Never hesitate to share your anxieties and doubts with your advisor: helping you keep a cool head is part of their job!

1 The gamma factor and the value of financial advice, Claude Montmarquette and Nathalie Viennot-Briot, CIRANO, 2016.
2 Same

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