It is always tempting to judge the value of your adviser on the recent performance of your investment portfolio. That is unfair as it fails to understand both the true value that a good adviser delivers with respect to investments and the fact that no manager can control the returns that the market delivers. A good adviser can earn their ongoing annual fee several times over, simply by helping clients to have patience, fortitude and discipline in their investing.
As the founder of Vanguard and legendary US investor, John Bogle points out:
“If I have learned anything from my 52 years in this marvellous field, it is that, for a given individual or institution, the emotions of investing have destroyed far more potential investment returns than the economics of investing have ever dreamed of destroying.”