Are financial advisers worth their fee? Commentary: Added value of portfolio planning — 1.8% per year

By Chuck Jaffe, MarketWatch

BOSTON (MarketWatch) — Investors have long wondered about whether it’s worth paying someone to mastermind a financial plan.

After all, it’s tough to see how much a proper asset-allocation plan or the right withdrawal strategy really adds to performance.

Now, new research from investment researcher Morningstar Inc. gives investors an idea of the added value of financial planning:

An extra 1.82% per year.

That’s not some random amount, but rather the results of a groundbreaking study that Morningstar released last week, one that is likely to have the financial-services community — and their clients — buzzing.

Functionally, Morningstar quantified how much additional retirement income investors can generate by making better financial-planning decisions.

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Photo courtesy of 401K Images through Flickr Creative Commons.


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