Vanguard, which last summer surveyed 12,443 clients, including 7,746 who receive advice, found that advised clients are roughly half as likely as self-directed investors to experience high financial stress levels — at 14% versus 27%.
Among other results, 86% of advised clients reported having greater peace of mind about their finances compared with managing them on their own; the number was a bit higher for those with a human advisor, Vanguard said.
And more than 75% of advised clients surveyed said that financial advice saves them a median two hours a week from focusing on their finances.
"This research reinforces what we’ve long believed: The value of advice is multidimensional, even extending beyond portfolio construction and financial planning interventions," said Joanna Rotenberg, managing director of Vanguard Advice & Wealth Management.
"In a world where finances are inherently complex, schedules are demanding and information overload is causing burnout, peace of mind — knowing you’ve made a sound financial decision that keeps your goals on track — and saving time while doing so are truly invaluable,” she said in a statement earlier this month, noting Vanguard’s human and digital advice services.
Vanguard hired Rothenberg from Fidelity in December to launch the Advice & Wealth unit.
The survey also found that employers benefit from advised employees’ lower financial stress. Workers in employer plans said they spend an average 3.8 hours a week distracted at work by financial stress, which Vanguard says costs employers $5,950 to $6,775 a year per employee in lost productivity.
“Half of the advised clients in employer plans say advice reduces financial stress at work. Overall, advice saves clients almost two hours per week at work — over 100 hours per year — improving worker productivity by $2,200 to $5,850 per year,” the survey says.
Clients should consider the better peace of mind and time savings when assessing the value of financial advice, Vanguard suggests.
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