Should I have more than one financial advisor?
Why sometimes less is more when it comes to wealth planning.
Fiduciary advice from a single entity
To reduce conflicting advice and investment strategies, we suggest only one firm manage your situation.
This helps ensure that the money your advisor is managing doesn’t interfere or overlap with what you may be doing on your own or with another firm.
Also inform your financial advisor of:
- 401(k) plans you may have through an employer and where it is invested;
- If you have a stock portfolio with a discount broker; or
- Any other investment vehicles that he or she would not be managing.
If you have only one advisor orchestrating everything for you, then not only are you are free of the workload, but you can be assured that they can see your entire financial picture. It helps reduce the risk that the left hand doesn’t know what the right hand is doing.
For example, at Edelman Financial Engines, we can help coordinate communication between your estate planning attorneys, tax advisors and our team of professionals so that your wealth planning efforts are synchronized.
So, unless you have a coordination of effort, you could be reducing the efficiency of the wealth planning goals you’re trying to accomplish. You also could be incurring greater expenses by employing multiple advisors who are performing redundant or overlapping tasks.
Therefore, we recommend that less is more when it comes to the number of financial advisors you work with – and unless you have the time and skills to be the liaison between everyone – you should pick one person. And, of course, make sure you hire the right person!