Module 1: The emotional and time value of advice
Learning objectives
By the end of this module, you will be able to:
- Understand the key ways that advice provides value beyond investment performance.
- Recognise how advice supports clients’ emotional wellbeing and decision‑making.
- Identify how advice provides time savings that enhance the daily lives of clients and improves their outcomes.
Learning outcomes
On completion of this module, you will be able to:
- Clearly articulate how advice provides valuable emotional value to clients by reducing their financial stress and giving them peace of mind.
- Explain how advice frees up clients’ time — and why that matters.
- Demonstrate the broader impact of advice on clients’ lives, including improving their productivity at work and enhancing their overall financial wellbeing.
Presenter
Finance professor at Columbia Business School in New York
Bio
Paulo Costa, Ph.D., formerly a senior behavioural economist in Vanguard’s Investment Strategy Group, has accepted a position as a finance professor at Columbia Business School in New York. While at Vanguard, Paulo’s research interests included behavioural finance, financial planning and the value of financial advice. He holds a B.A. in economics from Yale University and an M.A. and Ph.D. in economics from Harvard University.
Introduction: How does advice add value for clients beyond portfolios?
Watching time: 2:12 minutes
An overview of Vanguard’s research on how financial advice improves clients’ emotional wellbeing and gives them valuable time back.
Watch the videoPart 1: What is the emotional and time value of advice
Watching time: 3:21 minutes
Paulo explains how advice delivers peace of mind and time savings alongside traditional portfolio and financial outcomes to advised clients.
Watch the videoPart 2: How advice reduces stress
Watching time: 6:01 minutes
Paulo explores how advice can increase confidence, reduce anxiety and strengthen emotional wellbeing for clients.
Watch the videoPart 3: How advice saves clients’ time
Watching time: 2:41 minutes
Paulo explains how advice saves clients time each week — and how they choose to spend it instead.
Watch the videoPart 4: The impact of advice on productivity
Watching time: 2:47 minutes
Paulo highlights how reducing financial stress through advice can improve focus and productivity in the workplace.
Watch the videoModule 1 quiz
Take the Module 1 quiz for 30 minutes of CPD
Take the quiz
Further resources
Client-friendly explainer
For many people, managing finances can be stressful and take up a lot of time. That’s where financial advisers come in – not just to help preserve and grow your wealth, but to help you feel more supported and confident in your long-term financial well-being.
The emotional and time value of advice
Our latest study explores the perceived emotional and time value of advisory services through a survey of advised and non-advised investors.
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