by Cheryl Moriarty, Wealth Advisor, Island Savings –
When you go to the doctor and get a diagnosis, they often encourage you to get a second opinion. We check reviews before we buy coffee machines and workout equipment; we even ask others about television shows before we start watching. Why wouldn’t you apply the same practice to your investment portfolio?
Some of the benefits of getting a second opinion on your investment portfolio include:
1. Feeling confident. Sometimes all you need is a new perspective. A second opinion could give you the confidence you need knowing your finances are in good hands.
2. Rethinking your financial plan, holistically. If things have changed in your life since the last time you looked at your plan, your second opinion review is a good time to make sure every part of your life is accounted for.
3. Re-evaluating what you’re invested in. Perhaps over the last few years your priorities or social values have shifted. Re-evaluate where you are invested and make shifts to ensure those changes are reflected in your investment plan.
4. Understanding your portfolio mix. Different financial professionals have different approaches to how they structure portfolios. A second opinion could show you how to invest in different parts of the market that you may have never considered before.
5. Reassessing your risk profile. A second opinion is a great time to reassess where you are on your wealth journey and if your risk profile has changed due to life circumstances.
When should you get a second opinion?
You are a do-it-yourself investor. Financial advisors have in-depth research methods and teams that they work with to understand investments and products. Getting their opinion on the investments, products and strategy you have been implementing might shed some light on some opportunities you might be missing.
You have been with the same advisor for many years. As you and your life evolve, your advisor’s advice should change along with it, and they should be just as proactive as the day you started your relationship. Getting a second opinion will give you a fresh perspective and ensure that your financial plan is still working as hard as you are.
You are looking for an advisor. You should ensure that the advisor you choose is the right fit for you and your family by having in-depth conversations about investment strategies while also keeping in mind that your values and principles align.
Cheryl Moriarty is a Wealth Advisor with Island Savings, a division of First West Credit Union.
Disclaimer: Mutual funds, other securities and securities related financial planning services are offered through Credential Securities, a division of Credential Qtrade Securities Inc. Mutual funds and related financial planning services are offered through Credential Asset Management Inc. Financial planning services are available only from advisors who hold financial planning accreditation from applicable regulatory authorities. Credential Securities is a registered mark owned by Aviso Wealth Inc.
