If Having One Financial Adviser Is Good, Then Are Multiple Advisers Better?

Many people choose to have professional guidance to boost their finances and some get more than one.

It’s difficult to set ourselves aside from the media pressure and genuinely see the support of a financial advisor as more than a trend  and as an investment for our wellbeing. Now, sometimes when people do reach their financial goals as a result of having a financial advisor working for them, they decide to move forward by adding more advisors and this can prove to be a complex conundrum whereby it all depends on the complexity of your financial system and other factors.

If it’s not broken, why fix it?

The first consideration before expanding your financial advisors is this: do I really need more? If all of your financial goals have been accomplished or they’re relatively satisfactory, then perhaps you should stay right where you are. If your current financial advisor is not delivering results, has made poor decisions previously or if you’re looking at other areas to expand your financial efforts, then having a second financial advisor might be suitable.

It can be hard to find an advisor that truly gets your vision and projection, plus you don’t have to update your private financial matters with someone you just met. Furthermore, in the event of any inconvenience (e.g. a claims situation) you don’t have to start wondering which one of your financial advisors are more suitable for the case.

There’s no point in over complicating things, plus it represents an additional expense that may be more rewarding if used for investments. At this point, you need to have a clear idea of your needs for financial planning. For instance, if you deal with the stock market, then another stockbroker may be required, but you need to have the certainty that you and the new additional advisors are on the same page and that with the new advisors you’ll get better results with minimised risk. Nevertheless, explore your current advisor flaws (if any) before moving forward with this decision.

As an additional note, if you ultimately decide to have more than one financial advisor, then try to have one of them acting as the prime advisor, a person or agency who is aware of the other financial advisors and that way you´ll have more control over the situation.

Should I rely on just one advisor?

It’s important not to seek additional advisors if the one you have is delivering fantastic results. However, sometimes clients do face a struggle, and it occurs when their current financial advisors are not available for any reason or, when they start developing their business in another industry. So start thinking about how well you can rely on your current financial advisor.

There’s no right or wrong on this matter, it all comes down to how well your finances are doing right now and whether it makes sense to add someone new to the team.. If you not receiving good results, change the one you have. If you want to expand your investment portfolio or need a stockbroker, then go ahead and add one.

If you feel safe financially speaking or if all your financial efforts involve high-risk levels, all of those aspects can give you a pretty good idea on the things you need. The only thing that should always remain, whether you stick to one financial advisor, or decide to go with several, is trust. As long as you trust the person handling your financial matters, you’re good to go and should not look any further.

Peter