Give me a practical model for a randomized study, please. Until you have that, let’s work with the evidence we have available. And that evidence seems pretty consistent with my beliefs(that I’ve had since before I started this job) that advisors don’t meaningfully improve investment returns per se, but they mildly improve investor tax planning, and they massively improve investor behaviour.
Self-selection is the default explanation; the onus is on financial planners to show that they are helpful.
Give me a practical model for a randomized study, please.
You could… I don’t know, select some people, offer half of them $1k to go to a financial planner and the others $1k in exchange for reporting on financial health, then see if the experimental group is better off a year later? This is not harder than doing things like deworming studies in Africa.
Give me a practical model for a randomized study, please. Until you have that, let’s work with the evidence we have available. And that evidence seems pretty consistent with my beliefs(that I’ve had since before I started this job) that advisors don’t meaningfully improve investment returns per se, but they mildly improve investor tax planning, and they massively improve investor behaviour.
Self-selection is the default explanation; the onus is on financial planners to show that they are helpful.
You could… I don’t know, select some people, offer half of them $1k to go to a financial planner and the others $1k in exchange for reporting on financial health, then see if the experimental group is better off a year later? This is not harder than doing things like deworming studies in Africa.