Engaging the services of a financial adviser or planner can be transformative to how you manage your wealth.
A financial expert’s knowledge and professionalism can refine and streamline your finances to help you better manage your money and help you use it to live the kind of lifestyle you want.
So, logically, it seems to follow that working with more than one financial adviser would produce even better results. By doubling up, you would imagine that the service you receive would be twice as fulsome and effective in helping you reach your financial goals.
But, when it comes to financial advice, two heads are often not better than one. Here’s why.
You may receive conflicting advice
The first and most obvious stumbling block to working with more than one adviser is simply that they may make different suggestions to one another.
For example, if you work with us at Cordiner Wealth, we first take the time to understand your life and your goals for the future. We then take a comprehensive look at your finances and design a financial plan that helps you reach those targets.
Another adviser may not work in the same way. They may put all their focus on achieving the highest investment returns, even if that’s not the most suitable strategy for you.
The conflict between these approaches may mean that your money isn’t pulling in the same direction, which may be less effective than the plan designed by just one person or firm.
Meanwhile, in the event that the advice of both professionals does align, that would mean you’re not actually gaining any more value from having sought a second opinion anyway.
If you are set on working with more than one adviser, it’s vital that you let each of them know what the other is advising.
This way, at the very least, they’ll be able to make decisions with one another in mind.
Your adviser will know professionals to help you if there are gaps in their service
One legitimate reason you might consider working with another adviser is because you think you need access to services that your current adviser cannot offer.
For example, you might want someone to write your will, or you may be looking for complicated estate planning services that your usual adviser is unable to provide.
In this case, it may still be best to speak to your current adviser, as they’ll know and have relationships with a range of professionals that they would recommend.
This helps make your financial planning experience seamless and comprehensive, rather than adding the additional layer of complexity that comes from working with another adviser.
You might be passing up on investment returns
Another issue you may come up against is that you could miss out on investment returns by working with someone else.
It’s highly unlikely that both your advisers are choosing the exact same investments, meaning your money will be invested in different assets. As a result, it’s probable that there will be a difference in the returns your two advisers can offer.
That means you’d be passing up on potential investment returns by splitting your money between the two.
And of course, by investing with one adviser, you’re more likely to make the most of compound returns – that is, growth on growth.
The larger your pot, the greater compound returns can be. So, by entrusting your entire portfolio to one adviser, your investments can be larger, increasing the returns that your money can potentially generate.
You’ll likely end up paying more for the services
Another downside to working with two advisers is it means you’ll need to pay fees to both of them.
In the long term, paying for financial advice makes sense. The value you derive from advice typically outweighs the cost, especially over time.
But, whether it’s a fixed or percentage-based fee, paying two advisers for their services doesn’t add up.
Receiving conflicting advice and investment strategies may actually be costing you more than it’s generating for you.
Meanwhile, hearing the same advice doesn’t add any additional value to you or move you any closer to achieving your financial goals.
All in all, this could mean that you end up paying more for advice than you really need to.
You may not meet your retirement goals
The biggest danger of working with two advisers is that it puts you in danger of not meeting your goals for later life.
The confluence of missed investment returns and an uneven, unaligned financial strategy could harm your chances of achieving what you want from your retirement.
That’s why it makes sense to work with just one adviser, following a bespoke financial plan that has your goals at its centre.
Speak to us
If you’d like to find out how having Cordiner Wealth as your sole financial planner could help you, please do get in touch with us.
Email firstname.lastname@example.org or call 0113 262 1242 to find out more.
The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
This article is for information only. Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.