How do you measure the value of professional financial advice? The obvious answer is portfolio returns. But according to Christopher Pawlik, distribution expert at Vanguard Germany, that's only part of the story. A recent Vanguard study—surveying over 1,000 advised investors and 200 advisors across Germany—reveals that intangible factors like relationship and security actually rank higher than performance for many investors. More than 70% of investors said they feel more confident about reaching their financial goals because of their advisor. Around 65% said advice gives them peace of mind, and 63% feel better secured about their retirement lifestyle. For you, this means the value of a good advisor goes far beyond the numbers.

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This shows that investors evaluate their advisor's performance much more broadly than just through returns—with clear implications for client loyalty. Financial advisors need to understand: personal interaction is almost as important as investment results for a lasting advisory relationship. Many advisory services have both a financial and an emotional value component. Good investment results within set goals build trust; behavioral coaching helps avoid investment mistakes and leads to better financial outcomes. But in reality, this isn't always the case—another finding from the study. While clients are generally satisfied with their advice, there's a gap between client expectations and delivered advisory services. Advisors can better align their offerings with client wishes and deepen relationships by being aware of these discrepancies.

One example: The survey shows that investors want more "quality time" with their advisors than they currently get. Only 21% of advised investors feel they always receive truly personal advice. But advisors see it differently—47% said they always advise clients individually. This gap between client perception and advisor assessment is significant. Another example is estate planning, which is increasingly becoming a core part of the advisory relationship. More than 70% of investors would prefer to address this topic earlier—ideally between ages 40 and 60. But advisors typically only start the conversation when clients are around 60.

The good news: Almost all (95%) of surveyed investors believe they achieve better investment results with advice. They estimate the average additional return from their advisory relationship at 6.4%—significantly higher than the 3% estimated in previous studies. This shows that advisors need to work especially on the emotional value of their advice to take client relationships to the next level. One excellent way to do this is by offering active behavioral coaching—especially in volatile market phases when emotions run high. On average, this can boost clients' annual net returns by up to 1.5%, making it one of the most important alpha sources for advisors. The study shows: 65% of investors and 86% of advisors recognize the importance of behavioral coaching in crucial moments. Notably, 73% of investors value support in not reacting to every market move—and 62% find help in avoiding return-chasing valuable. Behavioral coaching isn't a "soft" add-on; it's one of the most effective forms of value-adding advice—especially when markets are volatile and rational decisions are hard.

This has another positive effect. When you trust your advisor, you're less inclined to constantly monitor market developments and your portfolio, evaluating every news item for potential price effects. Good advice not only saves you frustration but also precious time. Clearly, clients want a more personal relationship with their advisor. They want their advisor to listen, understand their situation, and truly care—not just about their money, but about their well-being, goals, and family. For advisors, this means spending more time on direct client contact. The consequence is clear: If advice is increasingly defined by quality, trust, and guidance, advisors must invest their time where it creates the most value—in personal dialogue. Routine tasks like administration or portfolio management can now be efficiently outsourced. Relationships cannot.

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In summary, what really counts in financial advice goes beyond portfolio performance. For you, the ideal advisor provides not just returns but also security, trust, and guidance—especially during market turbulence. By focusing on behavioral coaching, personalized attention, and proactive planning, advisors can bridge the gap between expectations and delivery, creating deeper, more valuable relationships. As the study shows, when you feel heard and supported, you're more likely to stay the course, avoid costly mistakes, and achieve your long-term financial goals.