Valley First

When more advice isn’t better

Choose one advisor and simplify your life

Financial planning is like a game of chess: you need to see the whole board to win. Financial success begins with having a single financial advisor. When one advisor oversees your portfolio, your bottom line will benefit. Dealing with multiple financial advisors can make achieving your long-term financial goals more complicated. The benefits of placing your investments under the management of one advisor or institution will boil down to three things: time savings, tax efficiency and greater returns.

Time savings

Managing your investments to maximize return and minimize risk appropriately takes time. Are you shuttling around seeing more than one advisor a few times per year? Or spending countless hours trying to decipher income and investment reports from different institutions, then piecing them together in order to get the full financial picture? Having one advisor in one location saves precious hours and enables you to assess your overall situation more clearly.

Tax efficiency

There can be big penalties for over-contributions (and many missed opportunities for tax savings) every year. Unless all your advisors know what’s in your entire portfolio and have a complete picture of how your investment strategy fits your life you just can’t realize all the tax-saving opportunities.

Having one advisor could also potentially reduce the number of tax receipts you receive, which in turn will reduce the amount of time your accountant will spend completing your tax return—saving you money over time in reduced billings if your accountant is paid hourly.

Better returns

While it’s smart to have different investments in different asset classes, having several advisors puts you at risk for over-concentration in one area or even duplicated investments. If you’re over-invested in a particular area because you have different financial advisors who don’t see the whole picture, you put yourself at greater risk for serious losses.

Need more reasons?

  • Holding a diversified portfolio is a sound strategy, but utilizing several different financial advisors may cloud their overall view and leave you over-invested in a particular area and inadvertently increase your risk.
  • Multiple advisors can make it more difficult to gauge how your overall portfolio is performing. Few investors have the time, inclination or advanced analytical ability to look at multiple investment statements and calculate the return on their entire portfolio.
  • Fees are often based on a percentage of assets under management with a reduction in the rate as the size of your portfolio grows. Consolidating your assets with one advisor can make you a more attractive client and may result in fewer fees and potentially better service.

Stop in for some expert advice

Ultimately, the best course of action is to begin laying the foundation with some free professional advice. Visit a branch or book an appointment to talk to someone today.

Talk to us

Whether you’re looking for more information, or you’d like to let us know how we can serve you, you’ll find our contact information here.

We encourage you to visit an investment advisor at any of our branches for more advice on how to reach your goals!