Dawn is breaking on a new era for financial advice

Posted by TEBI on October 4, 2022

Dawn is breaking on a new era for financial advice


Robin writes:

For many people, paying an evidence-based adviser to manage their investable assets makes perfect sense. But, let’s be honest, many don’t need it, and many more either can’t afford that type of financial advice or at least would struggle to justify the expense.

The good news is that, in both Britain and the United States, dawn is breaking on an exciting new era for advisers and consumers. It’s an era in which it won’t be just the wealthiest in society who enjoy the benefits of independent and impartial advice. And, as my latest article for Money Marketing explains, it’s got nothing to do with investment wizardry — trying to forecast the markets, for example, or identify outperforming fund managers in advance.

Increasingly, I expect financial advice to fall outside the perimeter of formal regulation, which is primarily designed to protect clients from being mis-sold specific products.

In fact, my view is that the advice profession of the future is not about products at all; nor is it primarily about investments. No, it’s about peeling back unnecessary layers of intermediation. It’s about controlling things we genuinely can control and providing services that really do add value. It’s about holistic financial planning, tailored financial education, and ongoing coaching and mentoring. It’s about empowering people to take control of their personal wealth — and to use that wealth to live the life they want.

I fully appreciate just how revolutionary these developments are. I know there are bound to be excellent, client-focused advice firms that feel threatened by them. But, as long as they’re willing to adapt, and are able to justify the fees they charge, I’m sure they’ll continue to thrive.

Of course, I don’t claim to have all the answers, or to know exactly what financial advice will look like 20 years from now. So please share your own thoughts — and don’t be afraid to tell me if you think I’m wrong!



Warren Buffett once told a story every investor should read. It concerns the Gotrocks family, which owns all of corporate America, and receives the full value of company profits.

Then a group of people, which Buffett calls the Helpers, offer to assist some family members to outsmart the others, “for a fee, of course”. So, while the total profit earned by the Gotrocks family doesn’t change, they don’t get it all, because the Helpers have to be paid.

The profit of the companies owned by the family doesn’t increase, but with more and more Helpers, charging more and more fees, the Gotrocks end up worse off.




Here are some other recent posts you may have missed:

Skill persists but luck is ephemeral

How do interest rates impact on REIT returns?

Do recency bias and loss aversion lead to mispricings?

How a 52-week high hurts returns

Why market predictions are best ignored



The content that TEBI provides would not be possible without the support of our strategic partners, to whom we are very grateful. 

Our principal partner in the UK is Sparrows Capital. We also have a strategic partner in Ireland — Biograph Wealth Advisors, a financial planning firm in Dublin.

We are currently seeking partnerships in North America and Australasia with firms that share our evidence-based and client-focused philosophy. If you’re interested in finding out more, do get in touch.


Picture: Frederica Respini via Unsplash


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