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When it comes to medical or legal advice, the value of getting a second opinion is well established and defined. What about financial decisions? At what point does it make sense to get a second (or a third) opinion on money matters? Learn about the benefits of seeking a second financial opinion, including a few situations when a gut check might be necessary.
Many Eggs, Many Baskets
As the adage goes, you never want to put all your eggs into one basket — and jumping headlong into a financial strategy recommended by one person does just that. What if their advice is outdated or does not fit your financial situation? What if the person providing the advice might be receiving a commission based on the products you select? By getting a second opinion, you will have a stronger strategy and a way to confirm that the initial advice you received was either on target or not suitable for you.
Another benefit of a second financial opinion is that it can encourage you to reevaluate and reassess your goals. If your personal, employment, or financial situation has changed since the last time you reviewed your portfolio, it is an excellent time to make sure these changes are considered in future decisions. You might also need to reevaluate your investments or rebalance your asset allocation.
Finally, by getting a second opinion, you will also have a chance to compare the costs and fees charged by different financial advisors. You might discover that you are happy to pay a higher fee for more tailored advice; on the other hand, you might decide that your financial situation does not warrant advice from someone whose fees are higher end of the scale.
When You Might Need a Second Opinion
Situations where you could benefit from a second opinion include:
You are a DIY investor.
If you have been managing your own investments, it is a good idea to bring in a professional to give your portfolio a top-to-bottom review. You might discover some opportunities you have missed.
You have been using the same financial advisor since you began investing.
If the second opinion matches up with your original financial advisor's advice, you might feel more confident that you are on track. If this advice is different, you will know there is a disconnect somewhere and can work to track it down.
You do not have a relationship with a financial advisor.
If you have not partnered with a financial advisor, you might not be aware of all the services and strategies available. It is important that any financial advisor you choose is a good fit for your style and financial situation. An initial interview can help you assess their investment strategies, values, and principles before you become a client.
There are more circumstances that will warrant a second opinion, but these three situations cover a lot. If you're concerned about taking your next financial steps or just want a comprehensive review of your balance sheet, a financial advisor can help.
Talk to a Financial Advisor
Financial advisors with BECU Investment Services are here to help. Our team will take the time to get to know you, understand your goals and plan and implement a financial strategy that's appropriate for you. Set up a complimentary consultation or call 206-439-5720.
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The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual security. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing.
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