It is important to get a second opinion on a medical diagnosis. Doctors often recommend it. The rationale is that every doctor is unique in their approach. As a result, a second opinion could bring a different perspective or expose an overlooked aspect, leading to a more accurate and comprehensive diagnosis.
Financial second opinions are no different – your investment portfolio, structured in the past under different circumstances, may not be relevant to your evolving goals today and require evaluation from a fresh set of eyes.
Like doctors, every advisor has a unique approach to asset allocation and risk assessment. A financial second opinion will expose you to new and different perspectives and possibilities. Also, financial planning is a domain with complex moving parts like tax, employment status, goals, and market movements, each impacting the other in different ways. So, even a tiny oversight can be costly. A second opinion from a different advisor can help avoid errors and build a robust financial portfolio.
Globally, we are witnessing significant changes in various investment solutions and the life insurance landscape. So, a good financial strategy a year ago may not be relevant to your needs today. A second opinion could bring you access to new tools and opportunities that are more aligned with your current circumstances.
That is especially true when you gain perspective from advisors experienced in different sub-domains such as estate planning and offshore legacy planning. They will be up-to-date with best global practices and solutions in their respective specialisations, enabling you to future-proof your portfolio for the near term.
Financial portfolios must change with circumstances
The widespread fluctuations in the financial markets can create gaps between expectations and results in your investment portfolio. As personal circumstances, such as marriage and retirement goals, change, the gaps can grow. Therefore, it is important to periodically evaluate your financial portfolios and align them with your new goals.
If a certain company’s stocks haven’t performed well against the benchmark, and if your fundamental attitude towards risks or your long-term strategy has changed, you may want to rebalance your portfolio with companies carrying better prospects. A second opinion from an independent advisor will help you understand the full breadth of options available in such scenarios.
Though we are witnessing high interest rates, the returns and flexibilities being offered in long-term investment solutions are also increasing. So, it might be an opportune time to explore and benefit from the new structures. We are seeing investment solutions that can provide attractive income returns with better guarantees, which didn’t exist just a few years ago.
A second opinion from an independent financial advisor can potentially unlock value from an investment plan you are currently locked in and restructure it into a solution that will not only bring higher returns but also be flexible and agile.
Changing insurance landscape calls for a policy revisit
The need to seek a second opinion on your insurance plans largely stems from the recent advancements in underwriting. The emergence of actuarial science — the discipline that applies mathematical and statistical methods to assess risks — in insurance underwriting has positively impacted prices and coverage.
So, unlike in the past, we are able to cover clients with pre-existing health conditions at reasonable rates. Insurers are also assuming higher risks for policyholders willing to provide accurate information through wearables like smartwatches. For example, a healthy smoker can get a preferred health rating and insurance solutions by furnishing test results.
Likewise, changes in personal financial fortunes may require you to either increase or decrease your premiums and associated coverages. As insurance solutions are inextricably tied to your and your family’s financial well-being, they must be reviewed periodically.
If you wouldn’t buy a house without factoring in the opinions of multiple knowledgeable people, then there is no reason why you should leave the fate of your family’s financial future at the hands of one person. So, if you are considering a policy or hoping to revise existing ones, you have nothing to lose and everything to gain by getting a second opinion.
Leading financial advisors offer a free, no-obligation review of your current portfolio, giving you the opportunity to realign it with your evolving circumstances and goals. That exercise is particularly aimed at maximising the benefits, reducing costs, and minimising market risks.
Entrepreneurs and family offices, in particular, are restructuring their portfolios and meeting their cross-border requirements in light of increased travel and global mobility. To many, the mere satisfaction from having sought a second opinion and considered all the options has made all the difference.
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