Question

As a financial would, you prefer to work with a single financial advisor or a team? What are the advantages and disadvantages of each option?

Answer 1

One advisor can not deliver the same level of service as a team of professional advisors; they simply do not have all the technical skills required to achieve the client's best outcome. Your CPA provides guidance on tax preparation and preparing tax returns; your solicitor assists with any variety of problems, like starting up a company, lawsuits, corporate succession, estate planning, or divorce; and your financial advisor leads the charge in helping you meet your financial objectives. A successful group of advisors will bounce off each other's ideas, work together like a well-trained team of cricket players and discover the best strategy to achieve the goals of their client. Hence, it is always better to work with a team of financial advisors.

Let us look at the advantages and disadvantages of each option:

Advantages of a single Financial Advisor:

1. Lesser cost of services.

2. There will be total accountability i.e. if the performance is not that great, we know whom to blame.

3. The relationship is more intimate. Since a single advisor provides advice on many aspects of your life, it makes sense to have a more personal relationship, because you are talking to one person only.

4. Sometimes the more basic client scenarios can benefit from one advisor who can truly handle it, rather than a team.

Disadvantages of a single Financial Advisor:

1. Single consultants do not provide comprehensive advice, simply because it is difficult to employ every planning aspect within a single company.

2. Single person tends to be "jacks of all trades, masters of none," as recruiting and affording the best minds within each specialization is difficult.

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