How much does an advisor cost? It’s a common question, and the answer can be complex. Russell Investments, a leading global investment management and solutions provider, publishes an annual study on the variety of services an advisor typically provides.

According to their report, “…year over year, [their] Value of an Advisor study has indisputably shown that an advisor who delivers holistic wealth management services provides value that far exceeds the typical fee charged.”[i] In short, cost is only an issue in the absence of value.

Price is what you pay. Value is what you get.

—Warren Buffet

It’s human nature to be curious about what’s going to happen next. While personal events follow more predictable paths (pursuing higher education, buying a home, starting a family, etc.), the financial markets are different. The past couple of months have demonstrated how unpredictable and volatile the markets can be. And looking back just a few years, we’ve encountered a global pandemic, corporate bankruptcies, and surging inflation. All these circumstances—both together and separately—create ripple effects no one could foresee.

This unpredictability underscores the need for careful financial planning and expert guidance. At Larson, we believe navigating such uncertainty requires a professional approach with a personalized touch. Our corporate Investment Committee closely monitors market movements, proactively rebalances portfolios, and uses smart asset allocation in our proprietary models.

In turn, this helps your advisor deliver personalized solutions for you and your family. A major component of this is your individual financial plan. But why is planning important?

Let’s revisit the initial question: how much does an advisor cost?

Consider these Analogies

When you go to the grocery store, you usually have a list of items you want to purchase. You’ve made a plan by taking inventory of what pantry staples you’re running low on, what meals you intend to cook for your family for the week, and maybe what specials they have. Your shopping list is part of your plan, and it helps you stay on budget.

But like many of us, you’ve probably gone to the grocery store without making a list. And what happens? We don’t remember what necessities we’re out of, we make hasty decisions and splurge on unnecessary items, and we spend too much and go over budget. Often, we’re missing ingredients to prepare a cohesive meal, which means we waste even more time going back to the grocery store.

Similarly, when your Cadillac Escalade needs maintenance, you wouldn’t trust just anyone for maintenance. The cheaper oil change guy down the street might save you money today. When your timing belt breaks while you’re on the interstate, however, you’re going to be spending a lot more cumulatively in repairs, towing, and time. From a big-picture perspective, you would’ve saved more money overall if you would’ve taken your vehicle to the Cadillac dealership in the first place. Their technicians are trained professionals who can help diagnose small issues before they become major breakdowns.

So…how much does an advisor cost?

These may be oversimplified examples, but they help illustrate why having a plan and working with professionals matters. The cheapest option isn’t always the best, and in the long run, it may end up costing you more.

At Larson, we’re not just financial advisors; we’re your trusted partners, here to guide you at every step of your financial journey. We provide strategic, holistic financial planning tailored to your needs, with solutions designed to protect and grow your wealth. Our mission is to empower you to flourish, helping you navigate life’s uncertainties with confidence.

Returning to Russell’s research, it’s clear that the real question isn’t “How much does an advisor cost?” but rather, “How much value does my advisor provide?” At Larson, we believe value lies in proactive planning and expert guidance. Our personalized strategies go beyond the numbers. Our role is to help you make informed decisions that not only protect your assets but also position you for long-term success. After all, the true cost isn’t the fee you pay, but the value you might miss by not working with a trusted advisor.

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[i] https://russellinvestments.com/-/media/files/_request/us/na-ais/kits/value-of-an-advisor-ei.pdf