Financial Advisor Benefits: Studies Show It’s More Than Money

People often seek out a financial advisor when important life events cause them to get serious about their finances. Whether approaching retirement, selling a business, or rebuilding their finances after divorce, professional advice helps them attack these transitions with confidence and make better decisions like the people referenced in these case studies.

Unfortunately, sometimes people delay getting the professional help they need and deserve because they’re uncertain whether hiring a financial advisor is truly “worth it”.

I’ve addressed this hesitation previously by recapping Vanguard’s methodology for quantifying the financial benefits of working with an advisor, and I interviewed the study’s author on our podcast.

Over the years Vanguard Advisor’s Alpha study has been updated a few times, yet the conclusion remains the same – working with an advisor can add about 3% in net investment returns.

While investment management and detailed financial planning are the most visible benefits of working with a good advisor, research shows their value goes far beyond the numbers.

Another comprehensive Vanguard study found that professional advice delivers additional advantages—from behavioral coaching to greater peace of mind. If you’ve ever wondered how else a financial advisor can help, the latest findings offer clear answers.

Non-Financial Benefits

1. Reduced Financial Stress

• Advised clients are about half as likely to experience high financial stress as those who manage their finances alone (14% vs. 27%).
• 50% of those with an advisor report low financial stress, compared to just 32% of self-directed investors.
• Simply put: having a professional in your corner helps you feel less overwhelmed, especially during uncertain times.

2. Greater Peace of Mind

• 86% of clients with an advisor report more peace of mind about their finances.
• This benefit is even stronger for those working with a human advisor (88%), but digital advice also provides significant comfort (69%).
• Clients say they feel more confident, satisfied, and proud, and less anxious or disappointed.

3. Significant Time Savings

• 76% of clients say advice saves them time—a median of two hours per week, or over 100 hours per year.
• Advised clients spend less time thinking about and managing their finances (3.8 hours/week) than self-directed investors (5.5 hours/week).
• That’s time you can spend with family, on hobbies, or just relaxing.

4. Increased Positive Emotions & Decreased Negative Emotions

• 71% of advised clients say advice increases positive emotions like confidence and satisfaction.
• 79% say it decreases negative emotions such as anxiety and disappointment.
• Money is emotional, and having an advisor helps you feel better about your financial decisions.

5. Improved Financial Confidence

• Clients feel more confident in their financial decision-making and future outlook.
• This confidence leads to fewer sleepless nights and more pride in progress.

6. Reduced Distraction at Work

• Financial stress can spill over into work life. Advised clients report being less distracted by financial worries at work, saving nearly two hours per week on average.
• This translates into higher productivity and improved well-being on the job.

7. Comprehensive Support Beyond Investments

• Advisors provide value not just in portfolio management, but also in goal-setting, financial planning, and tax-efficient strategies.
• Clients cite peace of mind, trust in their advisor, and help with planning as key reasons for seeking professional advice.

8. Trust and Relationship Value

• Many clients say the relationship and trust they build with their advisor is a key benefit—having a “financial partner” to lean on when life gets complicated.

9. Better Financial Outcomes (Perceived)

• Clients believe they have better financial outcomes and are more likely to stay on track with their goals when working with an advisor.

Quick Comparison Table

The Bottom Line

The benefit of working with a financial advisor goes far beyond investing and financial planning. It’s about reducing stress, gaining back valuable time, building financial confidence, and having a reliable partner to help you navigate life’s complexities. Vanguard’s research is clear: “financial advice offers significant value beyond traditional portfolio construction and financial planning interventions. The peace of mind and time savings that clients experience should be integral measures when assessing the value of financial advice, because they can enhance clients’ quality of life.”

Next Steps & Resources

Looking for a good financial advisor, but don’t know where to start?