Why Having More Than One Financial Advisor Might Be Hurting Your Financial Plan
It’s common to hear the phrase “Don’t put all your eggs in one basket.” It’s sound advice when it comes to investing, spreading your money across different asset classes, sectors, and strategies helps manage risk.
However, when clients apply that same idea to their financial advisors, it can actually backfire. Some investors think working with two (or more) advisory firms means they’re diversifying their advice. In reality, it often creates confusion, overlap, and gaps in their overall plan.
Think of it like seeing two primary care doctors, each prescribing medication without knowing what the other prescribed. Even if both doctors are excellent, the lack of coordination could cause complications.
The same principle applies to financial planning. Having one trusted advisor who sees the whole picture ensures your investments, taxes, insurance, and estate plan are all working together, not at odds.
Here are some of the main reasons why keeping your financial guidance coordinated matters:
1. Lack of Coordination = Conflicting Advice
Every advisor builds recommendations based on what they can see. If we only know about part of your financial picture, say one investment account or a portion of your retirement plan, we can’t tailor our advice to your whole situation.
The result? You might get conflicting advice or duplicate strategies that cancel each other out. For example, one advisor might recommend adding more bonds for stability, not realizing your other advisor already shifted a large portion of your other accounts into conservative investments. You could end up overexposed to bonds without realizing it.
2. Clarity: Seeing Your Progress Clearly
One of the greatest benefits of having a single advisor is clarity. When all your assets are coordinated under one plan, you can easily see how each piece contributes to your larger financial goals.
Instead of juggling multiple statements, logins, and strategies, you have a clear view of your total progress. That clarity helps you make better decisions and stay confident in your path, especially during periods of market volatility or major life transitions.
3. Confidence: Simplifying Decision-Making
When you have more than one advisor, you’re often left in the middle, trying to interpret competing advice. That can create stress and indecision.
A single, trusted fiduciary partner helps eliminate that confusion. With a single, coordinated plan, every recommendation is based on the same understanding of your priorities and risk tolerance. Decision-making becomes simpler, faster, and more confident, because everyone’s on the same page: yours.
4. Tax and Investment Inefficiencies
When multiple advisors work independently, there’s no coordination on tax planning, asset location, or risk management. You could end up:
- Holding the same investments in multiple accounts (reducing true diversification)
- Realizing gains in one account while realizing losses in another, missing tax-saving opportunities
- Taking distributions that could affect Roth conversion strategies and Medicare IRMAA
- Taking on more or less risk than you intend across your portfolio
- Paying more for tax preparation with multiple 1099s from different institutions
A unified plan allows your advisor to manage these details intentionally.
5. Confusion About Accountability
When results don’t meet expectations, who’s responsible? It becomes difficult to assess which strategy is working and which isn’t when two advisors are pulling in different directions.
As fiduciaries, our responsibility is to always act in your best interest, not just to recommend suitable investments, but to ensure every aspect of your financial plan works together to serve your goals.
6. Diversification Is About Investments, Not Advisors
True diversification happens within your portfolio, not among the professionals who manage it. A skilled financial planner will already diversify your holdings across asset classes, sectors, and geographies, all while keeping your overall goals, timeline, and tax situation in view.
The Bottom Line
Working with multiple advisors may seem like a smart way to “spread risk,” but in most cases, it spreads confusion instead. A single, coordinated financial plan, managed by one advisor who understands your complete financial situation, is far more likely to get you where you want to go.
At KWB Wealth, we’ve built our process around integration and coordination. Whether we’re managing investments, coordinating with your tax professional, or helping you prepare for retirement, our focus is on seeing, and serving, the whole you.
If you’re curious about how consolidating your financial life could bring clarity and confidence, we’re happy to discuss your situation. Give us a call or schedule a time to talk. We’d love to help you see the full picture of your financial plan.
~ Diana Sailler
This content is for informational and educational purposes only and should not be construed as personalized investment, tax, or legal advice, or as a solicitation to engage or terminate advisory relationships with any particular firm.