In medicine, a second opinion is sometimes necessary because a misdiagnosis with our health can have serious repercussions. The same is true of our financial health. A second opinion can help you determine if your financial goals can be met with your current investment portfolio.
Just like your physical health, it’s critical to pay attention to things that will help you make good financial decisions. Given the volatility of stock market returns, it’s ideal to be closely surrounded by financial advisors who understand your individual needs and goals, and take them into account when coming up with plans and tactics.
So, just what can a second opinion reveal?
- Volatility and Risk
Market volatility can have a profound impact on investors, especially those at the front end of their retirement. A second opinion will allow you to more clearly understand your portfolio allocation and how it can affect your investment returns. A good second opinion will help you align your investment portfolio with your goals and objectives, making it clear whether you are prepared not only to survive your retirement, but strive in your retirement.
A second opinion will assess your financial condition and how your portfolio is currently positioned. Depending on what your expectations are, a new set of eye balls and a fresh perspective will show you whether or not your current investment returns will allow you to meet your needed or desired goals. An honest fiduciary advisor will tell you to stay put if your current portfolio is on track to meet or exceed your financial goals. Likewise, if you’re missing out on opportunities due to philosophies and theories – then were thinking you probably would like to know.
High fees can eat a major chunk of your investment returns over time. A great way to increase your portfolio returns is to reduce advisory fees or use a lower cost investment option. But you have to make sure that you’re getting quality financial advice. You must not sacrifice quality for cost. There are lots of ways to reduce cost and a good advisor will help you explore them.
Who Should Advise You?
Is your advisor a fiduciary? Under the law, a fiduciary is required to make decisions that are in the best interest of their clients. It’s always good to review your advisor’s work history. It will help you determine if the advisor will act in your best interest and give advice and recommendations that are best for you.
How Do You Find A Great Financial Advisor?
Referrals from relatives and friends are a good place to start but do your homework to ensure you know everything about the advisor before handing over your financial information.
Find out if the advisor will charge for the service and how the information will be reported. Comparing the second opinion with your current plan is a great way to see what’s working and what’s not working.
The advisor doing the second opinion will need your financial statements. Opening up about what your financial goals are will also be helpful.
What To Do With The Information You Receive?
Depending on what your financial goals are, you can choose to do nothing or have your financial advisor review it. Don’t worry about upsetting your advisor; if she truly cares about your financial well-being she’ll appreciate a second opinion.
You Know It’s Time To Leave Your Advisor But You Can’t
Perhaps after the review, you discover you’re paying too much in fees or that your advisor is not offering the services that could increase your investment returns; it may be time to leave your advisor.
One of the hardest decisions to make is to fire your longtime financial advisor. But it’s in your best interest to act before it’s too late. Retirement is expensive — to retire in comfort, you need turbocharged investments and a smart retirement plan. Getting an objective second opinion will help you make the most of your investments and secure the future you worked your whole life to achieve.
If you’re ready for a 2nd opinion, reach out to us for a free, no hassle consultation by clicking the contact button above. We here at David Ortiz Advisors take pride in doing everything we can to help you to Plan Smarter & Live Better.