Is It Time for a Change? 5 Signs You Might Need a New Financial Advisor

Choosing the right financial advisor is one of the most important decisions on your financial journey. This is the person who will guide you toward your financial goals, help you navigate complex decisions, and provide support during market fluctuations. 

Unfortunately, not all financial advisors are created equal. While some may focus solely on investment management, a truly comprehensive financial advisor will take a holistic approach that considers every aspect of your financial life, including investment management, retirement planning, tax strategies, estate planning, and more.

If any of the following scenarios resonate with you, it might be time to consider making a change and seeking a more comprehensive approach to your financial well-being:

1. The Sound of Silence: Lack of Proactive Communication
A strong advisor-client relationship is built on open and consistent communication. Your advisor should proactively reach out to you, keeping you informed about market trends and economic updates and scheduling regular reviews to discuss your financial progress. If you feel like you’re in the dark or only hear from your advisor when it’s time for a sales pitch, it’s a sign that your needs aren’t being met.

2. The Set It and Forget It Approach: Inadequate Planning

While a long-term approach to investing is essential, that doesn’t mean your financial plan should be static. Life changes, goals evolve, and your financial plan needs to adapt. A comprehensive advisor should go beyond simply managing your investments. They should discuss retirement income strategies, Social Security optimization, Medicare planning, and tax-efficient investing — providing a holistic view of your financial picture.

3. What’s Next?: Concerns About Succession Planning

As advisors build their careers, it’s natural to think about what will happen to their clients in the event of retirement or an unexpected life event. A responsible advisor will have a clear succession plan in place to ensure a smooth transition for their clients. If you’re unsure about your advisor’s long-term plans or haven’t been introduced to a potential successor, it’s a valid concern.

4. Lost in Translation:  Advisor Doesn’t Understand Your Needs

Every client has unique goals, values, and risk tolerances. You need an advisor who truly understands your circumstances and tailors their advice accordingly. If you feel like your advisor doesn’t get you, is pushing products that don’t align with your needs, or dismisses your concerns, it might be time to seek a better fit.

5. The Investment Mismatch

Transparency and trust are paramount in any advisor-client relationship. Your advisor should clearly explain their investment philosophy, strategies, and the rationale behind their recommendations. If you find yourself questioning their approach, disagreeing with their decisions, or feeling uncomfortable with the level of risk in your portfolio, it’s important to address those concerns.

Making the Transition

We understand that switching financial advisors can seem like a daunting task. You might be wondering:

  • Is it complicated? The process is usually straightforward. Most assets can be transferred in-kind, meaning they’re moved directly from your old account to your new one without being sold.
  • Will I lose money? Generally, no. There are rarely any surrender charges or exit fees for transferring assets to a new advisor.
  • What about my existing investments? Your new advisor will review your current portfolio and make recommendations based on your goals and risk tolerance. Some adjustments might be necessary, but these will be discussed with you thoroughly.

Taking the Next Step

If you’ve recognized some of these signs in your current advisor relationship, it might be time to explore your options. Don’t settle for anything less than a proactive, comprehensive, and client-focused approach to financial planning. For more tips, listen to our podcast episode, Navigating the Transition to a New Financial Advisor.

We could be the right fit for you. Contact us for a consultation — and stay tuned for part two of this series, where we outline some questions to ask as you search for a new advisor.