Is wisdom really worth 4.52%?
In this episode, Tim and Rory unpack the true value of advice.
Russell Investments recently quantified the value financial advisers bring to New Zealand investors at 4.52%, Rory breaks down the “price of wisdom” and explores the real benefits that extend far beyond portfolio performance.
(00:00:43) What’s in the 4.52%: asset allocation, customised planning, and behavioural coaching
(00:01:38) Why investors fixate on numbers; NZ’s property bias and herd behaviour
(00:02:24) When “safe” turns risky: property boom/bust parallels with ’87 crash, dot‑com, GFC, COVID
(00:03:25) Returns comparison: NZX50 (~6.9x) vs globally diversified (~17.5x) since the late ’80s
(00:04:06) Media narratives, bubbles and innovation; the human tendency to react to “now”
(00:05:31) Holistic planning beyond returns: tax efficiency, structures, succession, risk insurance
(00:06:13) Goals you can’t price: flexibility, travel, family—why some outcomes are “priceless”
(00:06:35) Estate planning basics: wills, guardianship, peace of mind
(00:07:51) Behavioural coaching in action: “don’t do this” moments; staying invested in KiwiSaver
(00:10:27) Humans vs algorithms: reassurance and judgement you can’t automate
The Adviser Talk is available on all popular streaming platforms, including Apple and Spotify.