Taking the Team Approach

By Michael J. Searcy

We often talk to people about how utilizing multiple financial advisors can lessen their chance for success. For example, one advisor could decide to trade out of an investment to take losses at the same time the other decides to buy into that same investment, creating a wash sale, and adverse tax consequences. Neither professional is at fault, they just didn’t realize what had occurred because they weren’t aware their client was working with multiple advisors. I started thinking about that concept differently and now want to tell you that you should work with multiple advisors, but, it’s not what you think!

What I’m talking about is working with an advisory firm that offers you a team approach rather than a single advisor. While a single advisor may be limited, a team can offer:

Broad Skills, Knowledge and Experience – When you have a team working for you, you can benefit from the different perspectives brought to the table. Each advisor might have different credentials as they specialize in specific areas of financial planning or investment management. They will also have different experiences to draw from and see things from different perspectives. Instead of being committed to one person’s view on matters, a team works toward the best solution for your needs and goals together. The diversity a team brings can be attractive to people who value a broader view.

Balance – Would you expect one person to be knowledgeable about everything going on in the world that could impact your investments? It could be overwhelming for a single advisor to be informed of all potential influencers of the investment markets. In a team approach, multiple people research potential investments from different points of view, and come together to discuss the most prudent route for clients. Not only are the advisors on the team able to better balance their time, no single decision is impacted by one person’s vision because the team balances those opinions and vets each decision.

Availability – Have you ever needed something done quickly only to be at the mercy of someone else’s schedule? When you work with a single advisor, you may find yourself in situations where they aren’t available when you have an urgent need. By working with a team, you know there are multiple people you could call upon to meet your requests or to discuss current situations that could impact your finances.

Succession – Just as you would expect availability from your advisor, you would expect your needs to still be taken care of when your advisor retires. However, when there is not a succession plan in place, you could be left with a stranger, or worse, left to fend for yourself. When working with a team, you don’t have to worry about being lost in a sea of names when your advisor retires. Not only will people be around to take over immediately, you should already be familiar with them as they have been a part of your team along the way.

Are you worried that working with a single advisor is limiting your current or future potential? Even the best player on a team can’t win alone so consider finding a team ready to grow with you!

Please remember that different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this content, will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for you or your portfolio. Due to various factors, including changing market conditions, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter (article) serves as the receipt of, or as a substitute for, personalized investment advice from Searcy Financial Services, Inc.

The content of this letter does not constitute a tax or legal opinion. Always consult with a competent professional service provider for advice on tax or legal matters specific to your situation. To the extent that a reader has any questions regarding the applicability of any specific issue discussed in this content, he/she is encouraged to consult with the professional advisor of his/her choosing.  

Published for the blog on December 19, 2019 by Searcy Financial Services, your Overland Park, Kansas Fee-Only Financial Planner and Investment Manager.