Utilizing Multiple Advisors Can Lessen Your Chance for Success


Have you ever had a patient try to hide medications they’re taking from you? You wouldn’t prescribe medicine before asking what others the patient is taking because you understand that some medicines don’t work well with others or need the dosage adjusted based on what’s already being taken. If the patient hides something from you, it could lead to a serious health issue for them. The same concept is true when it comes to financial planning. If you are working with multiple financial professionals who aren’t aware of what the others are doing, it could put your finances in an unhealthy condition.

In one situation, a couple began working with a CERTIFIED FINANCIAL PLANNER™ ( CFP® ) to manage their financial planning and investment management needs. They did not tell their CFP® that they were still working with an investment broker they had been using to invest some of their money. They now had two people managing portions of their money that didn’t know about each other or what strategies the other used to manage their portion of the money. Their CFP® advisor decided to trade out of an investment at the same time the broker decided to buy into that same investment, creating a wash sale, and adverse tax consequences for the client. Neither professional was at fault, they just didn’t realize what had occurred because they were left in the dark.

If you only share partial information with each advisor, you could be losing out. Unless someone is privy to all of the information, multiple investment strategies could be working against each other, and potentially impeding you from reaching your goals.

One possible solution would be to consolidate your investments with an advisor who offers the services you want, including both financial planning and investment management. A CFP® who is trained to plan, rather than just invest money, can oversee and manage the pieces of your financial puzzle, and could even identify opportunities or roadblocks of which you aren’t aware.

If that’s uncomfortable for you, another approach would be to, at minimum, have one advisor who is aware of all of the other pieces so they can take a comprehensive look at the strategies employed. This would enable them to tell you if there is investment overlap or if your overall strategy leaves you exposed to more risk than you desire. This could include looking at both brokerage accounts and retirement accounts that might be managed by others professionals. The advisor you choose to manage the big picture might not handle all of your investments, but at least they are aware of all the pieces and strategies and can make sure everything is in order.

Have you been keeping pieces of your financial health in the dark from the people who are supposed to help you? Don’t let your chances for success be lessened by utilizing multiple advisors with limited information. Work with a financial advisor who can help you understand and manage your entire financial picture for a chance at success!

For more articles related to physicians and finances, visit searcyfinancial.com/blog-posts/83-physicians-and-medical-professionals


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