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Portfolio Reviews: 6 Reasons You Need a Second Opinion

May 12, 2023

Investing your hard-earned money can be a daunting task, especially when it comes to managing your investment portfolio. Even if you have a good understanding of the financial markets, you may still have doubts or questions about your investment strategy. This is where a second opinion can be invaluable. Seeking the advice of a financial professional can provide you with a fresh perspective and help you make more informed decisions about your investments.

There are several reasons why you might consider getting a second opinion on your investment portfolio:

1. Performance: If you are not satisfied with the performance of your portfolio, a second opinion can help identify potential weaknesses or areas for improvement.
2. Risk/Diversification: Your risk tolerance may change over time due to changes in your personal circumstances or the market. A second opinion can help you reassess your risk tolerance and adjust your portfolio to ensure it is properly diversified across different asset classes, industries, and geographies. An unbalanced portfolio can expose you to unnecessary risk.
3. Fees: Understanding what you get for the fees you are paying is just as important as understanding how much you pay in fees. A second opinion can help you identify what you are paying as well as if it is worth the service you are receiving.
4. Life Changes & Goal Alignment: Major life events such as starting a business, having a child, marriage, divorce, retirement, or inheritance can have a significant impact on your financial situation. A second opinion can help you adjust your portfolio to reflect these changes and ensure it supports your goals.
5. Tax Efficiency: Your portfolio should reflect your overall wealth management strategy, which includes being as tax efficient as is possible. Having strong returns may be futile if too much of that is growth is paid in taxes now or in the future. Having a professional who understands investment income and the tax code can save thousands of dollars a year.
6. Ethical Investing: Aligning your investments with your personal values is important, and it does not mean sacrificing returns. A professional can help you invest in companies that align with your values and ensure portfolio diversification.

Getting a second opinion on your portfolio can provide valuable insight and help ensure that your investments are aligned with your goals and risk tolerance. It can also help ensure you are working with a professional who not only understands investment strategies in the context of your overall financial plan, but that it also aligns with your intentions for your wealth.

 

*Momentum Wealth is an investments trade name of ACPI.* ACPI is regulated by the Investment Industry Regulatory Organization of Canada (IIROC.ca) and Member of the Canadian Investor Protection Fund (CIPF.ca) Investment products are provided by ACPI and include, but are not limited to, mutual funds, stocks, and bonds. Peter Sproule is registered to provide investment advice and solutions to clients residing in the provinces of Ontario.

Any advice which may be given in respect of non-securities services is given by Peter Sproule solely and no such advice is given in their capacity as a registrant of ACPI. Canadian Investor Protection Fund (CIPF) coverage is available to IIROC Dealer Members and does not offer protection, within limits,on non securities products not held by a Member.

 Non-securities related business includes, without limitation, fee-based financial planning services; estateand tax planning; tax return preparation services; advising in or selling any type of insurance product; any type of mortgage service. Accordingly, ACPI is not providing and does not supervise any of the above noted activities and you should not rely on ACPI for any review of any non-securities services provided by Peter Sproule and Momentum Financial Services Inc..