Multiple Paths with Arrows

The Value of a Second Opinion

Multiple Paths with Arrows

When it comes to our physical health, most of us believe that is our right (and perhaps duty) to get a second opinion when diagnosed with a catastrophic illness, as discussed in this article on Of course, with the new health care law going into effect, this may become more difficult, unfortunately. Regarding our financial health, since there is usually nobody standing behind us to tell us when we should be doing something differently, chronic problems often go ignored until the damage is substantial. IFA has a unique perspective on this problem because we are in the position of having given out hundreds of second opinions, even when it resulted in no revenue for us. Among the many maladies we have seen in prospective client portfolios are high-expense active funds, brokerage accounts with high turnover, completely inappropriate asset allocations, ownership of vehicles (such as leveraged ETFs) where the client had no understanding of the risks involved—well, you get the idea—it’s a long list.

The potential benefit of a second opinion far outweighs the cost (about one hour of your time). If the second opinion results in you getting an additional 1% or even 0.5% of returns, the long-term impact would be huge. For example, an investor who starts with $100,000, would have an additional $79,000 at the end of twenty years if he could get an additional 1% of return.*

If you would like to receive a complimentary second opinion on your portfolio (with absolutely no obligations), please feel free to call us at 888-643-3133. As a first step, to see how much risk is right for you, please take the Risk Capacity Survey on



*This calculation assumes a baseline rate of return of 7%.