Special for Carson Wealth
It happens all the time. A client slips a manila file onto the table and the new financial advisor flips through the documents, asks questions, gets to know the client, happy to help him on his life journey.
But there is a moment of pause when the duo reach the asset part of the chat.
The client has another financial advisor.
Maybe the other advisor is helping with a 529 account for their children’s college fund, maybe it’s a legacy account, maybe it’s an account through their business, or can -being that it’s just an IRA opened years ago with a family friend. At first glance, this may seem unimportant, but using multiple financial advisers can create unnecessary risk.
“A lot of investors think they diversify with more than one advisor,” says Paul West, managing partner of Carson Wealth in Omaha. “But in reality, they create more risk – and often spin their wheels without getting any traction.”
West often sees this problem. In a recent example, a new client was not satisfied with the two advisors he currently had. After connecting the customer’s information to their company’s technology, the reason for the distress quickly became evident.
“One of the advisers used an extremely conservative investment philosophy, and the other was extremely focused on growth,” West said. “So you had two competing portfolios that just matched each other. “