Getting a Second Opinion …on your Retirement Account?

You get second opinions on a car repair or a surgical procedure, but did you know that a second opinion for your investment portfolio is an option? With the volatility in stock market, affected by economic and geopolitical factors that are beyond our control, having a steady hand at the wheel is important for your financial future. If you haven’t had your financial portfolio analyzed by another advisor, you may be missing out on some short- and long-term gains.

Checking Your Current Advisor’s Work”

Have you ever heard the old adage, “Don’t put all of your eggs in one basket”? It turns out that this applies to much more than eggs. Relying on the financial advice of one advisor for your entire life can actually be risky. They might invest in products that do not meet your risk tolerance or miss an opportunity to rebalance your account for other investment options.  

That’s why many financial advisors recommend getting a second opinion for your portfolio.  Sitting down with a third-party advisor and reviewing your current investment holdings will either show areas for improvement or verify that everything is running smoothly. You’ll have the peace of mind knowing that your money is being properly managed.

It’s important to note here that not all advisors are fiduciaries. A fiduciary is legally responsible for finding the best investment product that fits your needs. Advisors that aren’t fiduciaries don’t have that responsibility. While most advisors have their clients’ best interests at heart, there are some who might give preference to investments that earn them a higher commission. That’s why it’s important to work with reputable, properly accredited financial advisors.

Keep an Eye on Fees

A second opinion will also review the fees that you are being charged by your financial advisor. The fee structure is an important part of the financial management relationship. A second opinion can help you understand what fees you are being charged and if there is room for improvement that will help you keep more of your money.

Ensure You Understand The Investments You Have

Transparency is a trait of a good financial advisor. If you don’t understand your investment mix, a second opinion will help you get a better understanding. For example, if your advisor has purchased a financial product that is difficult to liquidate, it is important to know so you can add funds to other investment options that provide cash liquidity or the ability to move money around as you need. A second opinion will show you any blind spots that you have with your current investment mix.

There’s No Risk in Getting a Second Opinion

There really isn’t much risk when it comes to a second opinion. The biggest risk to NOT getting a second opinion is that you are not well invested and losing valuable time to build your retirement nest egg.

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