In the world of financial advice, there are generally three core recommendations an adviser can give: Buy, Sell, or Hold.
“Buy” and “Sell” are often seen as proactive decisions—suggesting movement, momentum, and action. These usually lead to transactions and give clients the impression that the adviser is working hard to earn their fees. But “Hold”? That’s where it gets misunderstood.
To many clients, “Hold” can feel like status quo. It may seem like the adviser has done nothing, especially when portfolios are already thoughtfully aligned to long-term goals and no changes are recommended. This perception can create friction—fees are being paid, but no visible action is taken.
But is “Hold” really inaction? Or is it perhaps the most powerful form of professional restraint?
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Reframing “Hold” as a Decision
The first step in resolving this tension is helping clients understand that every review of their portfolio is a fresh decision point. Whether the outcome is to buy, sell, or hold, the adviser has applied their expertise to assess the portfolio’s health, market conditions, and client goals.
If “Hold” is the conclusion, that is work—it’s a judgment rooted in discipline and conviction.
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Understanding the Client’s Temperament
The second factor is the client’s own temperament.
Some clients may prefer to manage their own portfolios, confident in their ability to make informed decisions. But many value having a trusted, independent adviser—someone who brings clarity, emotional detachment, and long-term focus to the table.
For them, a fee-only adviser acts like a financial coach—helping them stay committed to a well-constructed plan, especially in volatile or uncertain times.
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The Real Metric: Net of Fees Performance
The third question to ask is: How is the portfolio doing, net of fees?
If it’s performing well—without unnecessary churn or impulsive reactions—that’s a mark of success. It means the strategy is working, and the adviser’s role in curating, monitoring, and protecting that strategy is delivering value.
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Think of a Fee-Only Adviser Like Insurance
Many people buy insurance hoping they’ll never need it—but are comforted knowing it’s there.
A fee-only financial adviser is much the same:
You may not need drastic changes every quarter, but you have a professional safeguarding your financial future, refining strategy when necessary, and making sure your financial life remains aligned with your personal goals.
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Professional Advice Isn’t Always Loud
Think of a doctor telling you not to change your medication or to continue a healthy routine. That’s not a lack of service—it’s expert advice. And it’s billable, because it reflects training, responsibility, and care.
The same applies to financial planning. The best advisers don’t chase activity for activity’s sake. In fact, too much “buy/sell” advice can be a red flag—often reflecting a lack of conviction or clarity.
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Focus on What Truly Matters
At its core, the greatest value a fee-only adviser offers is helping clients stay focused on what really matters:
their interests, passions, goals, and peace of mind.
Sometimes, the wisest move is simply to stay the course.
Never confuse lack of action with lack of knowledge.
The best advice isn’t always exciting—but it’s always in your best interest.
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Have a wonderful day,
Naveen Julian Rego -CFP®
MD & Principal Officer
07th June, 2025