One of the most searched finance terms on Google is how to find a financial advisor near me.
In some ways, it does show a maturity about investors. Most people know they aren’t finance experts, don’t want to spend the time reading the evidence themselves and are looking to work with a trusted professional.
Consider the following facts though:
1. There is no evidence that local advisors will get more returns than an advisor in another city or country.
2.The key components of investor returns, like fees, asset allocation and time in the market aren’t linked to advisor location.
3.These days, with new technology, there is no reason why advisors can’t respond to their clients within hours of receiving a message.
4.There are some advisors who live in the same town as you, but are hard to get in contact with. There are others, in comparison, who could be thousands of miles away, but will respond almost instantly
5. There is countless academic evidence that human emotions is one of the biggest sources of lower returns. People deal with people they are more familiar with. Just like confirmation bias and home country bias, this can lower returns
If you are looking for an advisor and/or want to move your existing portfolio, considering options close and far away from home can make a lot of sense.