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IN THE SPOTLIGHT
How
many financial advisors are too many?
By Nancy Thomas, CWS® Senior Vice President, Frost
Diversify your portfolio. It's an
investment mantra frequently repeated to investors looking to manage
risk. The concept often works because different types of securities
generally react differently to the same event.
These days more and more investors are taking diversification a step
further, reasoning that if diversifying their investments can help them
manage risk in their portfolios, then diversifying their financial
advisors could do the same.
Here's the problem: If one advisor manages some of your money and
another manages another portion of your money, they may be working at
cross purposes, unless they communicate with one another -- which may
not be the case.
The result?
Your overall portfolio may contain large concentrations of
certain types of investments because both of your advisors are putting
money into the same securities or sectors. Or, your portfolio might be
full of competing investments that neutralize your strategy.
One additional problem: You must take the responsibility for trying to
coordinate your advisors' activities, requiring your time and hard
work. And without a complete understanding of what each is doing,
serious estate planning and tax problems may occur.
My advice: Find one well-qualified, trusted advisor to help you develop
an investment plan tailored to your goals and to coordinate the
activities of your attorney, CPA, insurance professional and others.
Contact Nancy
Thomas at 210-220-6532 or nthomas@frostbank.com.
Nancy Thomas is a registered representative of and
investment products are offered through Frost Brokerage Services, Inc.,
Member FINRA and SIPC.
Investment
management services, financial planning, and trust services are offered
through Frost Wealth Advisors of Frost Bank. Investment products are
not FDIC insured, are not bank guaranteed, and may lose value.
This information is sent on behalf of a valued BCMS Circle
of Friends sponsor at the gold level, but it is not an endorsement.
Donations from Circle of Friends sponsors help keep down the cost of
dues and allow BCMS to continue to provide quality service to its
members. The society continues its pledge to you and only will involve
itself in services and programs that benefit you, the member, and your
patients.
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