Speaking only of investments...for most investors, having multiple investment advisers is inefficient and unnecessary. An exception might be if you have ultra high net worth ($25+ million, for example) in investable assets, and want to diversify not only by asset class but also by adviser. I guess a foundational question is: What are your needs and what are you trying to accomplish by having multiple investment advisers? A good investment adviser should be able to manage or oversee the management of your portfolio in a diversified and coordinated way that best meets your needs and what you're trying to accomplish. If you're divvying-out assets to different advisers, then who's coordinating the strategies? Beyond investments, it's a good idea to have different advisers for certain financial concerns. While a good financial planner should be able to help you with all your broader financial matters, you'll want an attorney to draft estate documents and provide specific legal advice, a CPA or EA for tax return preparation, and so on. Hope that helps.
More than one investment manager? If you mean portfolio managers, From experience I can only think of one case where that works. If you are going to commit $100,000.00 or more to either taxable or municipal bonds, then yes, multiple investment managers make sense. One for the fixed income and one for everything else. And the one "for everything else" should be the one who helps you pick the fixed income manager. Here's why. Almost any competent advisor can manage a well built stock or equity Exchange Traded Fund portfolio. When it comes to fixed income, below $100,000 I would use ETF's for fixed income investing. Above that figure, it is impossible for the retail investor to compete in the fixed income markets. Pricing of bonds below $1,000,000 an issue does not bode well for the retail buyer. It is better to have a professional fixed income manager buy large blocks of debt and distribute them to his various accounts than for you to buy the same bonds for your self. But you also need a "quarterback" to help with overall asset allocation unless you want to do that on your own.During my wirehouse career, I had a couple of clients who used more than one equity advisor. Working with them was very difficult as my best recommendations to them could often spark the reaction "I own that in my other account". The real frustration came from a multi-advisor client who took one of my allocation recommendations, invested a proper allocation with me and then bought a much larger, riskier allocation of the same product from her other advisor. If that investment had not worked out, guess who would have been to blame!Employ one CPA, one estate attorney and one good financial quarterback. In the long run, you will be happier.
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