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When it comes to medical or legal advice, the value of getting a second opinion is fairly well established and defined. What about financial decisions? At what point does it make sense to get a second (or a third) opinion on money matters? Here we discuss some benefits of seeking a second financial opinion, including a few situations in which a gut check may not just be useful but downright necessary. Many Eggs, Many Baskets As the adage goes, you never want to put all your eggs into one basket—and jumping headlong into a financial strategy recommended by one person does just that. What if their advice is outdated or does not fit your particular financial situation? What if the person providing the advice may actually be receiving a commission based on the products you select? By getting a second opinion, you will have a stronger strategy and a way to confirm that the initial advice you received was either on target or not suitable for you. Another benefit of a second financial opinion is that it can encourage you to reevaluate and reassess your goals. If your personal, employment, or financial situation has changed since the last time you reviewed your portfolio, it is an excellent time to make sure these changes are taken into account in future decisions. You may also need to reevaluate your investments or rebalance your asset allocation. Finally, by getting a second opinion, you will also have a chance to compare the costs and fees charged by different financial professionals. You may discover that you are happy to pay a higher fee for more tailored advice; on the other hand, you may decide that your financial situation does not warrant advice from someone whose fees are more at the high end of the scale. When You May Need a Second Opinion Situations in which you could benefit from a second opinion include: You are a DIY investor. If you have been managing your own investments, it is a good idea to bring in a professional to give your portfolio a top-to-bottom review. You may discover some opportunities you have missed. You have been using the same financial professional since you began investing. If the second opinion matches up with your original financial professional's advice, you may feel more confident that you are on track. If this advice is different, you will know there is a disconnect somewhere and can work to track it down. You do not have a relationship with a financial professional. If you have not yet partnered with a financial professional, you may not be aware of all the services and strategies available. It is important that any financial professional you choose is a good fit for your style and financial situation. An initial interview can help you assess their investment strategies, values, and principles before you become a client. There are more circumstances in which a second opinion may be warranted, but these three situations cover a great deal of ground. If you're concerned about taking your next financial steps or just want a comprehensive review of your balance sheet, our team at Planned Financial Services can help. Click here to download information and learn more about our firm's complimentary Second Opinion service offering. Important Disclosures Investment advice offered through Planned Financial Services, a Registered Investment Advisor. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments. Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss. Asset allocation does not ensure a profit or protect against a loss. This article was prepared by WriterAccess. Tracking #1-05339454

As a business owner, you know the importance of planning for your company's future. To this end, you may have taken steps to learn about buy–sell agreements and the role that life insurance and disability income insurance can play in planning a business buyout. If so, you may be one step ahead of the game. But have you thought about long-term care buyout planning? A Buy–Sell Refresher Let's review an important tool for planning the future of your business. A buy–sell agreement is a legal contract that prearranges a buyer for your share of the business when a triggering event occurs, and it also stipulates the price that the buyer will pay. You may negotiate a buy–sell agreement with your partners, shareholders, members of your management team, or key employees who may have an interest in the company's future ownership. Buy–sell agreements are generally structured in one of two ways: as a cross-purchase agreement or an entity-purchase agreement. A cross-purchase agreement is negotiated between you and each partner or shareholder. If you die or become incapacitated, the parties to the agreement purchase your shares at a previously agreed on price. A cross-purchase agreement generally works best in companies with only two or three owners. As the number of owners increases, it can become expensive and administratively cumbersome for each owner to maintain an agreement with every other owner. For a company with a larger number of owners, an entity-purchase agreement may be more practical. With this kind of agreement, the company takes out a life insurance policy for each owner. At a triggering event, the insurance money collected by the company is used to pay the estate of the deceased owner for that person's share of the business, and the remaining owners avoid any out-of-pocket expenses. When the company buys back a departing owner's shares, the value of the remaining shares increase accordingly. Simply having an agreement in place does not ensure that funds will be available to buy your shares when the agreement goes into effect. Therefore, these agreements are often funded through life insurance (as is the entity-purchase agreement) and/or disability income insurance. In these cases, the triggering event would be death or disability. But what about the possibility of a long-term care event? Preparing for Long-Term Care To create a more comprehensive buy–sell agreement, you may want to consider planning for an accident or illness that requires long-term care. "Long-term care" refers to a variety of medical and nonmedical services provided to individuals with a chronic illness or disability. Most long-term care involves assistance with activities of daily living (ADLs), including, but not limited to, dressing, personal care, meal preparation, and housekeeping. An individual is generally considered to be in need of long-term care if he or she has difficulty performing two or more ADLs due to physical limitations, cognitive impairment, or both. Services are typically provided in a nursing home, in an assisted living facility, or at home. A long-term care event can come about suddenly, as a result of an accident or illness, or gradually, as part of the aging process. When an owner or partner requires long-term care, the company may find it difficult to continue to pay that owner's salary, and other owners may not have the funds to buy the departing owner's shares. Preparing for long-term care when drafting a buy-sell agreement may be important to the future of your company. A buy–sell agreement could trigger the sale of a departing owner's shares, and the agreement could be funded by long-term care insurance. Long-term care buyout planning may help preserve the value of the business and ensure continuity. Be sure to consult a long-term care insurance professional or your team at Planned Financial Services for more information. Important Disclosures Investment advice offered through Planned Financial Services, a Registered Investment Advisor. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. This material contains only general descriptions and is not a solicitation to sell any insurance product or security, nor is it intended as any financial or tax advice. For information about specific insurance needs or situations, contact your insurance agent. This article is intended to assist in educating you about insurance generally and not to provide personal service. They may not take into account your personal characteristics such as budget, assets, risk tolerance, family situation or activities which may affect the type of insurance that would be right for you. In addition, state insurance laws and insurance underwriting rules may affect available coverage and its costs. Guarantees are based on the claims paying ability of the issuing company. If you need more information or would like personal advice you should consult an insurance professional. You may also visit your state's insurance department for more information. This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor. This article was prepared by Liberty Publishing, Inc. Tracking #1-05331505