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Benefits of Financial Advisor Second Opinions

Investors hire a financial advisor in order to oversee their portfolio and ensure that the results are as strong as they can be. Once you designate someone, it becomes their responsibility to keep track of the markets and then adjust your portfolio to fit the ever-changing metrics.

However, that doesn’t mean that they’re incapable of making errors. At the Schwartz Law Firm, we help people feel more confident in their financial planning by looking over an advisor’s tactics and carefully evaluating whether they make sense for their portfolio.

When you think about the vastness of the markets and the intricacies of the forces that control them, you can imagine that an advisor has their work cut out for them. This is why second opinions can be so important in the financial world. There’s simply too much to know about and too easy to miss a critical detail that makes or breaks your portfolio. We look at the nature of financial advisors, the benefits of financial advisor second opinions, and how this can help you really maximize your margins.

Rewarding Benefits of Financial Advisor Second Opinions

When an investor thinks about their returns, there’s a lot to consider. Some people are happy with marginal growth over time, while others are looking for that flash-in-the-pan success. Some people love the thrill of trying new things and taking risks, while others find themselves anxious every time the market takes a turn.

Hiring a financial advisor is like hiring anyone for a job. It takes some effort to figure out how a person operates and what their knowledge base looks like. You could choose to go with a big-name firm and trust that they’ll put you in the hands of an expert, but it’s still worth doing the research on your own. You’re going to be relying on one person or a small team of people to keep track of your portfolio, so you don’t want to play fast and loose with who ends up with the job.

The idea is to stick with your financial advisor for a while. This isn’t just about calling them every few years to inquire about an emerging sector, or hiring them when you’ve hit some sort of financial rock bottom. You’re going to want to build a relationship with them, so they have a solid grasp on who you are, how you like to invest, and what you want from your assets.

A financial advisor is supposed to make recommendations that are aligned with your objectives and timeframes. They ensure that any security you choose is one that complements rather than complicates your portfolio. They put a cushion between you and risk, and this is true even if you’re someone who prefers to live on the edge.

All that time spent together, though, can end up giving people a false sense of complacency. They may think that their financial advisor has a handle on the matter, even when they don’t. This is when they should seek out another professional’s opinion, so they can be certain that you’re getting the most out of their investments.

What You Can Expect

There are some investors out there who love to talk about the value of their instincts. They may not read for days about every single opportunity they seize, but rather find out a little and then use their gut to decide whether or not the opportunity makes sense for them. The problem with this is that there are plenty of people who follow their instincts and still wind up being wrong. It’s the success stories that usually make the news, which may lead to a very skewed view about how to act on your instincts in the financial world.

An advisor has the best interests of their client in mind as they make decisions about how to manage a portfolio. Whether you want to pay for your great-great-great grandchild’s PhD or you just want to have enough to travel around the world during your retirement, an advisor is there to carefully assess the situation and then go from there. Your opinion is still the most important one of the bunch, but an advisor may bring up a few points that you hadn’t considered before.

When you ask for a second opinion, though, what you get is an objective, third-party who knows the markets and can spot any gaps that you or an advisor may have missed.

Financial Advisor Second Opinions and Long-Term Planning

If you went to a doctor and received a complex diagnosis, you would likely want to visit at least one more to ensure that the first doctor’s decision was accurate. There’s no downside to it, there’s really only a potential upside. Plus, financial advisor second opinions shouldn’t rattle the advisor in question. A confident professional will appreciate having their work evaluated by someone else, so they can rest assured they’ve given the best possible advice.

The Schwartz Law Firm represents individual investors, but we do not sell securities or offer investment advice. Instead, we ensure that your financial advisor really is delivering on all the promises that they make to you. You may be thrilled with the work that your advisor has done, but just want to confirm that it’s as profitable as it seems. Whatever the case, we’re here to help so contact us today to learn more about getting one extra opinion.

Matthew Schwartz

Matthew Schwartz is a Shareholder at Schwartz, P.A. where he serves as the practice group leader for their securities litigation and professional negligence practice group. His practice is focused on plaintiff-side securities arbitration and litigation, representing individual investors and institutions in claims against brokerage firms, investment advisors, commodities firms, hedge funds and others. He also represents plaintiffs who have been damaged by their insurance agents, lawyers, accountants and other professionals. He is an accomplished commercial litigator who has handled a variety of business disputes and other consumer claims.

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