Is the relationship with your financial advisor working or are there some signs that are making you feel like it’s time for a change?
Let’s assume that you are a few years away from retirement and you ask your financial advisor to show you how your assets will be able to provide you with the retirement income you need throughout your retirement. What if your advisor’s response is “Trust me, you’re fine?” Would you be okay with that answer or, like most of us, would you prefer that your advisor show you the numbers? If your current financial advisor is not putting a detailed retirement plan together including a full retirement cash flow analysis to show you the numbers, then you need to make an advisor switch!
Breaking up with your financial professional can be difficult, especially if you have a personal relationship with the individual and have worked with them for years. However, if your advisor lacks transparency and is not meeting your needs, then it’s time to make a change. Here are some reasons to end your relationship with your current advisor.
Signs You May Need to Change Financial Advisors
- Zero chemistry
Life is too short to work with professionals that you don’t like. If you are dreading a meeting or phone call with your current financial professional, then you need to find a new one that you enjoy working with. Having zero chemistry can also lead to lack of communication, trust issues, and lower client satisfaction.
- The advisor is not clear about their compensation
Your advisor should be able to clearly explain how they get paid. It is your advisor’s responsibility and fiduciary duty to educate and inform you on how they get paid and the value they provide for the fees.
- Poor communication
A key to all good relationships is open and honest communication. You should be meeting with your advisor on a regular basis and when you reach out with questions you should hear back within 24 hours. Retirement planning is an important part of your future. Make sure your financial advisor is quick to respond to your needs.
- Your portfolio is off track
You and your advisor should work together to establish an investment management strategy to ensure you have a clear understanding of what investments you own and why you own them.
In addition, you should be meeting with your advisor on a regular basis to review your portfolio and feel comfortable with how your investments are performing compared to an appropriate benchmark. Poor performance of your portfolio could be a sign that it is time for a change.
- Your situation changes
There is a big difference in the planning needs of a young individual just starting their career and a couple in their late 50s looking forward to retiring in the next few years. Make sure you are working with an advisor that is fully capable of helping you and your current situation. If you are nearing or in retirement and not working with a firm that specialize in retirement planning, then you will want to make a change.
How To Fire Your Financial Advisor
Firing your financial advisor involves several steps to ensure a smooth transition. Start by reviewing your advisor’s performance and comparing it to your financial goals. If you decide to move forward, notify your advisor in writing, stating your reasons clearly.
Gather all your financial documents and choose a new advisor or firm that aligns with your needs and specializes in retirement planning. Once you’ve found the perfect partner, you will work together to transfer your assets and accounts, ensuring there are no gaps in your financial planning.
Choose Kowal Investment Group for Your Retirement Planning
Make sure you are working with an advisor that operates as a fiduciary – always putting their client’s interest first before their own, has the skill and insight that lines up well with your situation and has a passion for helping people. If you see any of the signs highlighted in this blog and feel like it’s time to make a change, please give our office a call at 262-522-4040, or contact us online to set up an appointment to meet with one of our Financial Advisors for a complimentary retirement review.
Any opinions are those of Kowal Investment Group and not necessarily those of Raymond James. This material is being provided for informational purposes only and is not a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy selected.
