Portfolio Second Opinion
In our everyday life, we tend to seek another view or second opinion, particularly when it comes to making important decisions. Most of us would seek a second opinion before undergoing a procedure or new treatment. The same goes for financial advice. A financial diagnosis can provide clarity on the fees, performance, and compatibility of the investment strategy.
The Consequences of Poor Financial Advice in Spain and Portugal
Unfortunately, throughout Spain and Portugal, many individuals have received poor financial advice in the past, sometimes with devastating consequences. One of the most infamous examples is Continental Wealth Management, which collapsed in 2017, leaving many clients facing significant financial losses.
These situations typically arise not because of the financial products themselves, but due to the underlying investments recommended within them. High-risk, illiquid, or unsuitable assets can cause serious financial harm when they don’t align with an investor’s needs or risk tolerance. For instance, I’ve personally handled many clients who were recommended a Student Accommodation Fund within their portfolio/pension. Due to the illiquid nature of this investment, when issues arose, the fund was suspended, meaning no funds could be accessed. While they did eventually partly resolve the issue by selling the underlying properties, this caused significant problems, including clients facing cash flow difficulties, not recovering their full investment, and missing out on potential growth from those funds.
How to Get Back on Track After Bad Financial Advice
For those who have received poor advice in the past, there is often a way forward. As long as your investments remain in liquid assets—such as funds that offer daily dealing rather than being locked into structured products—it’s usually possible to restructure and get back on track.
This highlights the importance of seeking a second opinion on your financial strategy. Understanding the fees, performance, and risk profile of your investments can help ensure they align with your long-term goals and financial security, which can all be done through a portfolio review.
Have you received financial advice in the past and now worry whether your portfolio is performing as it should? Are you concerned about hidden fees, poor investment choices, or whether your strategy truly aligns with your financial goals?
Contact us today for a full review, and let’s ensure your financial future is on the right track.
What is involved in an Investment Portfolio Review?
We will review several aspects of your portfolio, including:
Asset Allocation
This means looking at how your money is invested in the different asset classes – for example, in equities, bonds, commodities, and cash.
Performance Analysis
Knowing the real return of portfolio will allow us to compare to similar risk related investments. This can help you identify underperforming assets or mismanaged funds that are not suited to your circumstances.
Cost Assessment
An important part of the review is the analysis of all of fees associated with your investment. This will include, product costs, investment fees, and ongoing adviser fees. High fees can have a detrimental effect on performance over the long term. Many investors, like myself, are always looking for ways to maximise returns while minimising risk.
Having a second opinion never hurts, especially when it comes to something as important as your financial future. It can give you the assurance you need or a fresh perspective. And remember, a second opinion is just that – an opinion. You are not obligated to make any changes If you think you could benefit from a financial second opinion, we can help.