Why We Are Here
In our first series of posts, we'd like to highlight why GPS is in existance. Our goal is to provide meaningful and trusted advice. Admittedly, sometimes it's hard to quantify the value of that advice. After all, clients pay us hard-earned money for something beyond a trusted relationship. When push comes to shove, we want to add financial value to clients' lives.
Vanguard Funds produced a study that attemps to quantify the value of an advisor's advice. The full study (PDF) can be found here. As you can see from the table below, an advisor has the potential to add up to 3% in returns as compared to the "average" investor through a number of strategies.
When looking at this table, we're proud to report that all of these strategies are addressed at GPS when providing investment advice. It's important to note, the largest potential value-add is "Behavioral coaching". Some of our biggest responsibilities and challenges are to guide clients in positive investment behavior during up and down markets. (Note: Our next post will show the effects of bad investor behavior.) GPS is here to be a strategic voice of reason and experience for clients.