The Value of Advice

Our ability to protect and grow wealth through customized advice has brought us the success we care about most: highly satisfied, loyal clients whose relationships with us span generations.

At BNY Mellon Wealth Management, we believe that many in our industry have underestimated the impact of two gradual but significant developments over the past two decades.

The first is the shift in retirement benefits from company-provided pension plans to employee-funded savings plans, which has made individuals primarily responsible for their own financial futures. The second is the synchronized aging of the population in the world's largest economies (Europe, China, Japan and the United States), which we believe will lead to incrementally lower economic growth and market returns in the future. Taken together, these two developments have profound implications for successful wealth management.

Historically, investors have focused on the concept of "alpha" — the excess return above an investment benchmark that can be earned by the careful selection of securities. But as families expand their wealth and their financial affairs become more complex, beating the market becomes a much smaller factor in the success of their overall wealth management plan. The new “alpha" must be a broader measure of success related to a range of financial planning disciplines.

Drawing from our years of experience working with successful institutions and individuals, we have developed five practices to help our clients achieve long-term financial success:

  1. Investing to maximize compounding
  2. Borrowing strategically
  3. Spending dynamically
  4. Managing taxes
  5. Protecting legacy

This framework is designed to help clients sustain wealth over the next decade and beyond. We call it "Active Wealth."

The comprehensive support we provide around these practices and the proprietary technology we utilize can empower our clients to stay focused on what is important so they can confidently navigate what is to come. And we know that it works — in fact, consistently following our advice has the potential to increase wealth accumulation by up to 5.2% on an annualized basis.*

Over our 200+ year history, we've seen times of prosperity, uncertainty and possibility. Our team of wealth management experts has the knowledge and experience necessary to guide our clients through all of it. Our ability to protect and grow wealth through customized advice has brought us the success we care about most: highly satisfied, loyal clients whose relationships with us span generations. Our specialist advisors will work closely with clients to ensure that the strategies we recommend are in tune with their lives and provide for the future they want for their family.

To read the full article, download the "The Value of Advice” PDF.

  • *Advice alpha is defined as the value of comprehensive wealth management that leads to better wealth accumulation and greater success of achieving financial goals and objectives over the life cycle of a clients' relationship. For further information about how BNY Mellon adds value, including an explanation of how the value we add is quantified, please see "Leading With Advice Overview and Active Wealth Value Proposition Discussion" (December, 2019), a copy of which is available at https://www.bnymellonwealth.com/assets/documents/lwa/leading_with_advice_overview.pdf or from your BNY Mellon Wealth Manager or relationship contact.

  • This material is provided for illustrative/educational purposes only. This material is not intended to constitute legal, tax, investment or financial advice. Effort has been made to ensure that the material presented herein is accurate at the time of publication. However, this material is not intended to be a full and exhaustive explanation of the law in any area or of all of the tax, investment or financial options available. The information discussed herein may not be applicable to or appropriate for every investor and should be used only after consultation with professionals who have reviewed your specific situation. The Bank of New York Mellon, Hong Kong branch is an authorized institution within the meaning of the Banking Ordinance (Cap.155 of the Laws of Hong Kong) and a registered institution (CE No. AIG365) under the Securities and Futures Ordinance (Cap.571 of the Laws of Hong Kong) carrying on Type 1 (dealing in securities), Type 4 (advising on securities) and Type 9 (asset management) regulated activities. The services and products it provides are available only to “professional investors" as defined in the Securities and Futures ordinance of Hong Kong. The Bank of New York Mellon, DIFC Branch (the “Authorised Firm") is communicating these materials on behalf of The Bank of New York Mellon. The Bank of New York Mellon is a wholly owned subsidiary of The Bank of New York Mellon Corporation. This material is intended for Professional Clients only and no other person should act upon it. The Authorised Firm is regulated by the Dubai Financial Services Authority and is located at Dubai International Financial Centre, The Exchange Building 5 North, Level 6, Room 601, P.O. Box 506723, Dubai, UAE. The Bank of New York Mellon is supervised and regulated by the New York State Department of Financial Services and the Federal Reserve and authorised by the Prudential Regulation Authority. The Bank of New York Mellon London Branch is subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request. The Bank of New York Mellon is incorporated with limited liability in the State of New York, USA. Head Office: 240 Greenwich Street, New York, NY, 10286, USA. In the U.K. a number of the services associated with BNY Mellon Wealth Management's Family Office Services– International are provided through The Bank of New York Mellon, London Branch, One Canada Square, London, E14 5AL. The London Branch is registered in England and Wales with FC No. 005522 and BR000818. Investment management services are offered through BNY Mellon Investment Management EMEA Limited, BNY Mellon Centre, One Canada Square, London E1C 5AL, which is registered in England No. 1118580 and is authorised and regulated by the Financial Conduct Authority. Offshore trust and administration services are through BNY Mellon Trust Company (Cayman) Ltd. This document is issued in the U.K. by The Bank of New York Mellon. In the United States the information provided within this document is for use by professional investors. This material is a financial promotion in the UK and EMEA. This material, and the statements contained herein, are not an offer or solicitation to buy or sell any products (including financial products) or services or to participate in any particular strategy mentioned and should not be construed as such. BNY Mellon Fund Services (Ireland) Limited is regulated by the Central Bank of Ireland BNY Mellon Investment Servicing (International) Limited is regulated by the Central Bank of Ireland. BNY Mellon Wealth Management, Advisory Services, Inc. is registered as a portfolio manager and exempt market dealer in each province of Canada, and is registered as an investment fund manager in Ontario, Quebec, and New Foundland & Labrador. Its principal regulator is the Ontario Securities Commission and is subject to Canadian and provincial laws. BNY Mellon, National Association is not licensed to conduct investment business by the Bermuda Monetary Authority (the “BMA") and the BMA does not accept responsibility for the accuracy or correctness of any of the statements made or advice expressed herein. BNY Mellon is not licensed to conduct investment business by the Bermuda Monetary Authority (the “BMA") and the BMA does not accept any responsibility for the accuracy or correctness of any of the statements made or advice expressed herein. Trademarks and logos belong to their respective owners. BNY Mellon Wealth Management conducts business through various operating subsidiaries of The Bank of New York Mellon Corporation. ©2020 The Bank of New York Mellon Corporation. All rights reserved.