Why Behavioral Coaching Is a Key Part of Wealth Gardens’ Services – Backed by Vanguard Research
- natalyagook
- Apr 23
- 2 min read
Updated: Apr 30
At Wealth Gardens, Behavioral Coaching is one of the core services we provide to our clients. Yet, we often find that new or potential clients are unfamiliar with this concept or unsure of its value. That’s why we’re highlighting a landmark study by Vanguard Advisor’s Alpha®, which quantifies the tangible benefits of various wealth management practices, including behavioral coaching. According to this research, behavioral coaching alone can add up to 1.5% (or 150 basis points) in net return annually.
What Is Behavioral Coaching?
Behavioral coaching involves guiding clients to make rational, informed investment decisions—especially during moments of uncertainty, market volatility, or personal financial stress. Instead of reacting emotionally to market swings, clients are coached to stay disciplined and focused on their long-term financial goals.
Vanguard’s research shows that investors who act on emotion—selling during downturns or chasing hot investments—often underperform compared to those who follow a steady, well-structured financial plan. Behavioral coaching helps bridge this gap. It's often the most significant contributor to an advisor’s added value over time, precisely because it keeps clients from making costly mistakes.
The Vanguard Advisor’s Alpha® Framework
The Advisor’s Alpha framework outlines key areas where financial advisors can improve client outcomes. These include:
Behavioral Coaching (up to 150 bps)
Cost-Effective Implementation (around 45 bps)
Portfolio Rebalancing (40 bps)
Tax-Efficient Asset Location (0–60 bps)
Withdrawal Strategy/Spending Plan (0–100 bps)
While all these areas contribute value, behavioral coaching stands out as the most consistently impactful over time, especially during turbulent markets.
Why This Matters to You
Working with a financial advisor who practices behavioral coaching is not just about having someone to manage your investments—it’s about having a trusted partner who helps you stay grounded, avoid emotional decisions, and build long-term wealth with confidence.
At Wealth Gardens, we believe that your mindset and discipline matter just as much as your portfolio allocation. That’s why we integrate behavioral coaching into all our client relationships—to support not only better investment outcomes, but also a calmer, more confident financial journey.
If you'd like to learn more about how behavioral coaching works in practice, or how it could support your financial plan, get in touch with us: https://www.wealthgardens.pro/first-consultation
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