Hiring Professional Help
Do-it-yourself surgery or a webmd visit may be fine for some, but are unlikely to have a better outcome than a real world medical professional visit.
It turns out the same is true in the financial world. Several studies in recent years show the incremental benefit of good advice.
A 2018 Schwab report showed that investors tapping into advisors are more diversified and better prepared for retirement than do-it-yourselfers. The study was based on 137,000 accounts. Professionally advised 401(k) participants had nearly twice the account values of the non-advised.(3)
Vanguard, the ultimate do-it-yourself venue, in their 2019 Advisors Add Alpha research report, suggests that comprehensive advisors add incremental value equivalent to 3% higher returns annually, creating substantially greater wealth over time.
And finally, Russell Investments in a study (Value of an Advisor) that reviewed the challenging 2020 market environment showed that professional help offered benefits for a very tough year - confirming the same level of better wealth outcomes suggested by the Vanguard study.