What does a financial advisor actually do for you?
Beyond picking investments, the real value shows up in behavior, taxes, and discipline. Here is how we put that research to work.
Most people do not lose money by picking the wrong fund. They lose it by selling in a downturn, missing a tax move, or putting off a decision for another year. That work is hard to see on a statement, which is exactly why it keeps getting measured.
The Latest Vanguard Advisor’s Alpha Study
Vanguard’s most recent Advisor’s Alpha publication highlights how advisors can add value beyond investment selection, especially through planning, behavioral coaching, cost-aware implementation, and tax-smart decisions.
Latest report: Celebrating Vanguard Advisor’s Alpha: Clients and their advisors thriving together for 25 years (Vanguard, 2025).
What is “Advisor’s Alpha”?
Advisor’s Alpha is Vanguard’s research-based framework describing the ways a financial advisor may improve client outcomes by focusing on what can be controlled: sound portfolio construction, cost efficiency, disciplined rebalancing, tax-aware decisions, and, often most importantly, behavioral coaching.
Key Takeaways from the 2025 Report
- ✓ Advice has evolved: Modern practice is shaped by changes in technology and regulation.
- ✓ Value isn’t just performance: Guidance and behavioral coaching outperform market timing.
- ✓ Tax and implementation: Meaningful drivers of net outcomes.
What Vanguard's Research Estimates
In its research, Vanguard estimates that advisors applying the full Advisor’s Alpha framework may add value of up to about 3% in net returns over time, depending on individual circumstances. This is Vanguard’s research finding, not a projection of your results, and not a guarantee. Value is not expected to occur evenly each year, and it varies by client situation. Read it directly from the source: Vanguard’s Advisor’s Alpha overview and the full 2025 paper (PDF).
Read the full Vanguard paper (PDF)How We Apply These Principles
At Maridea Wealth Management, we align our planning and portfolio process with these core decisions:
“A financial planner can help you achieve your goals faster than trying to do it on your own.”
Wendy Rios
Want to see what this looks like for you?
We’ll translate research into a clear, actionable plan, then help you implement it and stay on track.
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