When and How to Change Financial Advisors

When and How to Change Financial Advisors

Things can get a little difficult if you have been in a long relationship with your financial advisor but feel that he or she is no longer providing satisfactory services. You may be wondering whether you should continue working with your current financial advisor, or just unsure about the process of changing financial or wealth advisors. Fortunately, changing advisors is a pretty straightforward process if you are familiar with it.

First step to change your financial advisor

Financial AdvisorFirstly, is your financial advisor responsible for the poor results you are getting? For most people, financial advisors are hired to manage portfolios and help them to make good investment decisions. However, the markets are unpredictable, and financial advisors cannot guarantee that the employer’s expectations are met all the time. When you experience poor performance from your financial advisor, is it because he or she constantly makes the wrong decision or is it because the environment is just not conducive to strong performance?

Fees for changing your financial advisor

If you really do feel dissatisfied with the service that you are getting and you’d like to change advisors, you should be familiar with what you should do next. Find a new advisor you are interested in hiring, and get everything in line with him or her before you make the switch. If your current financial advisor works for a brokerage firm, you may need to pay a fee for changing advisors. Be careful when transferring accounts and ensure that the money is passed from one broker to another.

Some financial brokerage firms have certain standard operating platforms that all of their advisors must adhere to. Ask what they are and see if the problem is with the brokerage firm and possibly not the advisor. If that’s the case, you might need to shop around for a different brokerage firm that will satisfy your financial goals better. But take your time and do some research so you don’t fall into the same situation with your new firm.

A financial advisor’s job is to match your portfolio to your goals, so if you are constantly experiencing poor performance from your advisor, it may be advisable to make the switch. However, think carefully before making your decision to change financial advisors or you may just end up in a cycle of hiring and then firing advisors and still remain unsatisfied with the results you get.