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The Value of a Financial Second Opinion

Would you trust your entire future to a single person?

A financial advisor can help you plan for everything, from a major vacation to a well-earned retirement. However, when it comes to your future, it’s worth it to get a financial second opinion.

The truth is, everyone has an advisor, whether it’s yourself or a professional.

Why is a second opinion so important for you and your plans? Keep reading to learn the answer.

Initial Advice May Be Bad

One of the best reasons to get another financial opinion is also the most gut-wrenching: you may be getting some bad advice.

It’s easier than you think for someone to obtain a “financial advisor” title. And many advisors have been trained more to sell certain products and services than to offer the best advice for your particular situation.

Thankfully, this isn’t true of all advisors. But if you only have one person giving you financial advice, you may never know if there is a better advisor (and better advice) out there.

And even if you never get a second opinion, it’s worth evaluating the strengths and weaknesses of your advisor.

Stronger Strategy

When it comes to financial planning, you want the strongest strategy possible. And getting a second opinion is one of the best ways to achieve that.

For example, let’s say you get a second opinion and it confirms what your first advisor suggested. That’s actually good news, as it means two different advisors both agree on the right track for you.

The second advisor may offer different advice than the first, though. And this isn’t necessarily a bad thing: rather, it gives you an opportunity to hear different perspectives and choose the strategy best suited to your goals and lifestyle.

Whether the second opinion agrees or disagrees with the first, you emerge with a stronger strategy.

Peace of Mind

What’s one of the biggest reasons to seek out a financial advisor? Beyond long-term money management goals, most people are also seeking peace of mind about their future.

Getting another financial opinion is a great way to secure that peace of mind. It all comes back the “stronger strategy” point above. Knowing that you’re on the right track, or knowing that you have more options, is genuinely empowering. Instead of worrying about the future, you can feel more in control of your own financial destiny.

And regardless of your finances, you can’t really put a price tag on your peace of mind.

Teamwork Makes the Dream Work

You might think getting a second financial opinion is “going behind the back” of the first advisor. However, this isn’t true. Instead, this is actually a way of unlocking some financial planning “teamwork” that you didn’t previously have access to.

Why do so many workplaces rely on teams and committees? Bringing a diversity of perspectives to the table helps everyone learn new information and develop new options for approaching a task.

With a second opinion, the new advisor can offer you different strategies, tips, and perspectives on your finances. Between both advisors, you will have a multitude of options for how to manage your money.

Save Money on Fees

One reason some people hesitate to get a second opinion is that they don’t want to spend too much money on financial advice. But seeking out a second opinion can actually help you save money, especially over time.

If your second opinion professional helps you save or earn a lot more money in the long run, the additional cost for a second opinion can be a wise investment. You may find he or she even has lower fees than your current wealth manager.

Better Financial Position

There is another reason that a financial second opinion will put you in a better financial position. It all comes down to how much that second advisor wants your business.

If the second advisor knows that you already have someone you can trust, then they know they will have to win you over. Because of that, they are more likely to go the extra mile for you.

For you, this is like finding a salesman who is eager to cut a deal. You are likely to get the royal treatment — and more importantly, get the best possible financial advice.

And if the second advisor fails to win you over? You still have the original advisor waiting in the wings.

What Should an Advisor Review?

Determining whether you need a second financial advisor can be a complex decision. In order to answer that question, you need to have a good understanding of which financial aspects an advisor can usually help with.

Different advisors specialize in different areas. Some advisors help you make wise investments to grow your wealth, while others specialize in long-term planning to help you save enough for your child’s college education or your own retirement.

The truth is that a second financial opinion is almost always useful. But to get the most out of it, you need to find an advisor who specializes in the same area as the first.

The Importance of a Holistic Plan

Most people focus their attention specifically on investments, but a cohesive plan that also includes taxes, insurance and estate planning is also critical to developing a long term plan people can implement with confidence.

Getting a Financial Second Opinion the Right Way

Let’s say that you’re interested in getting another financial opinion. What is the best way to get started?

One method is to seek out advisors who offer a free initial consultation to let you get a feel for their services.

Another way is to seek referrals. Ask your friends, family, and colleagues about any solid financial advisors who they recommend. Trusted referrals can save you a lot of time finding another advisor.

Your Bottom Line

Now you know the value of a financial second opinion, but do you know where to find the best advisors to grow and manage your wealth?

We specialize in helping individuals achieve their financial dreams at any stage of life. To learn how we can make your financial dreams a reality, schedule a free consultation today.


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Second Opinion Partners