When you’re facing a serious medical situation, it’s normal to seek out a second opinion. Assuming you have the time, energy and opportunity, why wouldn’t you? Investments should be treated the same way.
Getting a qualified financial advisor to take a second look at your investments is something everyone should do on a semi-regular basis, every five years or so. You’ve worked hard to build your nest egg — it makes sense to gather as much information as possible on taking care of it.
Here’s what to expect from a second opinion.
The meeting
A second opinion is more than just giving your investment statements a once-over. It starts with a conversation to gain an understanding of your holistic financial picture.
- What level of risk can you tolerate?
- What are your long-term goals?
- What is your budget, and how much are you saving month-to-month?
- Are you expecting to make any big changes to your lifestyle?
This may seem comparable to what you did when you first built your plan, but things can change, and it’s important to make sure your strategy is still relevant based on today— not yesterday.
The plan
Once the advisor outlines your current goals, they’ll look at your financial plan. They’ll check to see if anything’s missing. Someone giving a second opinion may have suggestions to fit your current lifestyle.
The investments
Now it’s time to study your investments. Are you invested beyond your risk tolerance? Are you being charged unnecessarily high fees?
Some companies are still charging high fees, but there’s no way the average investor would know they’ve been overcharged unless they get a second opinion.
Your advisor should always be making a concerted effort to explain things simply and transparently. If they aren’t, it might be a good sign that it’s time for a second opinion.
Get a second opinion on your finances —For more investment advice visit valleyfirst.com/invest.
Stacey Agecoutay is a Wealth Planning Specialist at Valley First, a division of First West Credit Union. Connect with Stacey SAgecoutay@valleyfirst.com .