Savant Capital Management Answers the Question, "Do I Need a Second Opinion on my Financial Portfolio?"

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If you have only half of the money in your portfolio you had before, it's an extremely good time to have another advisor reevaluate your portfolio and give you a second opinion

Rockford, IL (PRWEB) May 6, 2009

Nearly every investor in the world has seen a hit on their portfolios from exposure to the market. Many investors are wondering if they had the wrong strategy to begin with, and if their advisor was really looking out for them in the first place. So now that the markets look to be turning around again, do you trust the plan your advisor is setting up for you? Or are you looking for a second opinion?

So how do you know if you need a second opinion, besides having a gut feeling that something's not right?

"If you have only half of the money in your portfolio you had before, it's an extremely good time to have another advisor reevaluate your portfolio and give you a second opinion," said Brent Lindell, a financial advisor at Savant Capital Management, a fee-only wealth management firm headquartered in Rockford, IL.

How do you start? According to Lindell, the advisor you ask to review your portfolio should:

• Be knowledgeable and act as your Fiduciary, meaning they stand in your shoes and give you the same advice they would give to one of their close friends or family members.
• Make your portfolio and your efforts very transparent while explaining in an easy-to-understand way the complexity of the investment industry.
• Be objective and communicate with you on a level that is comfortable and understandable.

What should you review during a second opinion meeting?

• Start with an in-depth look at your risk tolerance levels to see how you feel about investing.
• Most financial advisors are finding that risk tolerance levels are much lower than they were in the past.

Take a thorough look at your actual portfolio.

• Does your optimal asset allocation/diversification fit your risk tolerance level?
• Is your portfolio diversified enough?
• Analyze equities by size, style, Domestic vs. International vs. Emerging Markets
• Analyze fixed income holdings by bond maturity and quality of bond holdings
• How is your portfolio being watched and evaluated on a regular basis? Is there a regular rebalancing effort?
• How much is your portfolio costing you? Review mutual fund classes, mutual funds vs. individual stocks vs. annuities vs. ETF's, etc. How will this affect the cost of your portfolio?
• Identify areas of inconsistencies and inefficiencies that the advisor can give a detailed explanation on what steps you need to take.

Review tax management of your current portfolio

• Review turnover. If you have taxable money, how is the tax cost of turnover in your portfolio affecting you?
• Asset positioning: If you have both taxable and tax-deferred money, how are your assets positioned amongst the varying accounts to be the most tax efficient?
• Tax-loss harvesting: As the market pulled back, was someone there to collect this money and book losses to offset your future gains?
• Gifting and charitable strategies: Should you be gifting, and if so, how much?
• If you are retired and are distributing from your portfolio, are you using the most tax efficient vehicle to distribute?

Are you investing with a purpose in mind, such as retirement? Do you feel you are getting the advice you need?

• Are you financially on the right path toward retirement?
• Where do you stand after the market pullback?
• Will your portfolio withstand inflation?
• Do you need to reset your budget?
• If you are still working, does your advisor take your current 401(k) plan into consideration and incorporate it into your plan? Advisors should evaluate your 401(k) on both a tax efficient and diversification aspect.

Saving for your future is one of the most vital matters for a family. Maybe you have a great relationship with your advisor, but remember that your portfolio will need to be there long after your advisor has left his or her position and/or retired. So, think about what strategies are right for you and your loved ones (as your loved ones are the ones who could benefit from your planning), and get a second opinion on your portfolio.

About Savant Capital Management, Inc.
Savant Capital Management, Inc. offers investment management, financial planning, and family office services to financially established individuals, trust funds, retirement plans and non-profit organizations.

Savant is regularly recognized among the top wealth managers in the United States. Savant was named the top independent advisor in Illinois by Chicago Magazine. Savant has been twice named by Barron's magazine as one of the 100 best independent financial advisors in the United States, and Inc. magazine named the firm as the fastest growing Registered Investment Advisor in Illinois by the Inc. 5000. For the past seven years, Savant earned a place on Bloomberg Wealth Manager's Top Wealth Managers list. Savant also has been recognized as one of the nation's top 100 financial advisors by Worth magazine each year since 1997. In 2006, Savant was included in The Wealth Factor--A Team Approach, a book profiling ten of the most innovative and respected wealth management firms in the nation.

For more information on Savant Capital Management, log-on to http://www.savantcapital.com.

Savant Capital Management, Inc. is a Registered Investment Advisor. This announcement is only intended for interested investors residing in states in which the Advisor is qualified to provide investment advisory services. Please contact the Advisor to find out if the they are qualified to provide investment advisory services in the state where you reside. Savant's marketing material should not be construed by any existing or prospective client as a guarantee that they will experience a certain level of results if they engage the adviser's services and includes lists or rankings published by magazines and other sources which are generally based exclusively on information prepared and submitted by the recognized adviser. The Adviser does not attempt to furnish personalized investment advice or services through this publication. Past performance is no guarantee of future results.

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