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8 Reasons Advisors Are Worth Their Fees: Russell

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Russell Investments, which just released its 10th annual Value of an Advisor study, noted the many industry changes and turbulent market events over the past decade, including the COVID-19 crisis, aggressive Federal Reserve rate hikes, and demographic shifts that saw baby boomers starting to leave the workforce and Generation Z stepping into it.

“No matter what our industry has faced, advisors continue to provide value to their clients. In fact, you could even say they provide greater value as their role has evolved from picking stocks and writing an investment plan to providing holistic family wealth planning,” the firm says.

While Russell has tweaked its formula over the years, the firm continues to embrace its main advisor formula: active rebalancing of investment portfolios + behavioral coaching + customized experience and family wealth planning + tax-smart planning and investing.

Advisors who provide comprehensive planning charge an average of 1.5% of assets under management, compared with the industry average of 1.05% and the average robo-advisor fee of 0.36% for basic asset selection, according to Russell.

Clients, meanwhile, get what they pay for — the paper lays out several quantifiable ways they benefit from professional advice.

Check the gallery for 8 ways financial advisors provide value to clients, according to Russell.