Case studies in the download
Ashley
Age: 50
Value of advice: 1.33% additional return (approximate)
Profile: A relatively high earner who falls into the UK’s 60% tax trap, where her annual allowance is reduced £1 for every £2 she earn over £100,000. Her adviser helps her make better use of tax-efficient savings vehicles.
Jennifer
Age: 45
Value of advice: 0.65% additional return (approximate)
Profile: Jennifer has been adding to cash to her portfolio to feel better protected from recent market volatility. She’s too optimistic about her retirement goal and would benefit from reviewing it.
Michael
Age: 55
Value of advice: 1.83% additional return (approximate)
Profile: A mid-career investor with an overpriced adviser who has not been meeting his personal needs. His risk level is out of date and a gap in his National Insurance record has gone unnoticed.
Anita
Age: 60
Value of advice: 1.26% additional return (approximate)
Profile: A late-career investor who is not aware of the high level of risk in her portfolio and needs advice on how best to withdraw from her accounts in retirement.
Lisa
Age: 65
Value of advice: 0.95% additional return (approximate)
Profile: An investor close to retirement who needs advice on a sustainable and tax-efficient withdrawal strategy from her accounts when she enters retirement.
Peter
Age: 57
Value of advice: 3.55% additional return (approximate)
Profile: A self-employed investor who recently sold his business. He is prone to panic during big market selloffs and needs advice on what he can afford to spend in retirement.
Adviser interventions
| Jennifer | Ashley | Michael | Anita | Lisa | Peter | |
|---|---|---|---|---|---|---|
| Contribution order (prioritise pension contributions) |
✔ | ✔ | ||||
| Withdrawal order (prioritising sale of less tax-efficient assets in retirement) |
✔ | ✔ | ||||
| Dynamic spending | ✔ | ✔ | ||||
| Improved suitability of asset allocation over time (including addressing “cash drag”) |
✔ | ✔ | ✔ | ✔ | ✔ | |
| Rebalancing | ✔ | ✔ | ||||
| Underspending | ✔ | |||||
| Overspending | ✔ | ✔ | ||||
| Improvements to cost of investing | ✔ | |||||
| Addressing incomplete National Insurance record | ✔ | |||||
| Capturing employer pension match | ✔ | |||||
| Behavioural coaching: Staying the course |
✔ |
Complete the module
The value of personalised advice in the UK: Research summary
The question “What is the true value of financial advice?” is of huge importance to financial advisers. In this article, we explore how putting a number on the value of your advice can help you articulate your value to individual clients – which, in turn, can help you build stronger long-term relationships.
Video: How to use the case studies to calculate the value of advice for an individual client
If you have completed all content in the module, you are ready to take the quiz and collect your CPD
Ready to test your knowledge?
Take the quizOther Vanguard 365 pillars
Practice management
Tailored content to help you build your practice, market your services effectively and cultivate a thriving professional network.
Financial planning
CPD content structured to give you access to useful tools, guides and multimedia resources covering diverse topics from risk profiling to retirement planning.
Investment knowledge
CPD content formulated for you to explore in-depth insights on investment principles, portfolio construction and comprehensive product education to expand your technical knowledge.