4 signs it’s time to fire your financial advisor

A good financial adviser acts as a trustee and can help you with various financial tasks, such as estate planning and investment. If your financial advisor does not meet your expectations, it may be time for a new one.

Breaking up can be difficult. This is especially true when it comes to your financial advisor. After all, they not only understand your financial situation, but also your dreams and goals. Although firing your financial adviser is never easy, it is sometimes necessary. From being unable to contact to not keeping your goals in mind, here are four reasons to fire your financial advisor.

Key points

  • You should always contact your financial advisor or at least receive a response from them in a timely manner.
  • Financial advisors should be able to clearly explain their financial advice to you.
  • It is important to read your financial statements every quarter and be prepared to ask your consultant questions.
  • A good financial adviser will take your best financial interests at heart and explain why they recommend one specific action rather than another.
  • A financial advisor should be able to help you plan life milestones, such as retirement.

1. Your financial advisor ignores you

The cornerstone of any relationship is communication. Without it, things can be easily misunderstood, anger can be easily generated, and ultimately mistrust. Miscommunication can quickly ruin relationships, especially when money is involved, which is why good financial advisors set basic rules based on how often and when they contact you.

If your consultant suddenly stops responding to your phone calls or emails, or takes too long to respond to you, this may be a sure sign and you may need a new consultant. After all, people will turn to financial advisers. If you don’t get it, why are you paying this person?

2. The financial advisor talks to you, not to you

Your financial advisor must know you well, your risk tolerance, investment horizon, and aggressive or conservative nature in order to achieve your financial goals. If they don’t sit down and talk to you, and more importantly, listen to your opinions, they won’t be able to gather any knowledge.

If your financial advisor tells you what to do during your meeting without hearing your goals, dreams, and fears, then they have not considered your best interests. If your financial advisor is doing this more and more, it is best to buy a new one.

3. Too much jargon and insufficient information

For many people, investing can be complicated and confusing, which is why there are so many financial advisors. Not everyone can explain well what your money is invested in.

Financial advisers who use your jargon but cannot explain what happened in layman terms should send you red flags. The financial adviser either does not want to or cannot provide you with the necessary information about your investment. Either way, this is not good for you and your financial situation.

Your financial advisor should not guarantee a high return on investment or put pressure on you to make investments that you cannot afford. Always make sure that your financial advisor is the trustee.

4. Investment is too expensive

One of the fastest ways to see your returns decrease is to pay excessive fees and expenses. Although the job of a financial advisor is to match your investment with your goals and expectations, they should pay close attention to costs. You don’t want to end up in a situation where your adviser guides you to invest with a high commission, and you don’t want to pay too much for the fund in the case of similar investments.

Viewing your monthly or quarterly reports is a great way to understand your expenses and expenses. Seeing high amounts, it’s time to call your consultant. If you are unable to correct the situation, or the cost is so high for no good reason, it means that you may need to fire your financial adviser.

Bottom line

Financial advisors play an important and necessary role in guiding ordinary people to make appropriate investments. But the excellence of these professionals depends on the services they provide to customers.

If your financial advisor does not pay enough attention to you, does not listen to your opinion, or confuses you, then it may be time for you to give up and find a new advisor who is willing to work harder to keep you as a client.

Frequently Asked Questions for Financial Advisors

How do you become a financial advisor?

Most financial advisers hired by a brokerage company must have an undergraduate degree. In addition, financial advisors who want to succeed in their careers must study and pass their license exams in order to obtain a Series 7 license with others. Experience in specific financial fields (such as investment) is also important.

What does a financial advisor do?

Financial advisors perform a variety of jobs, depending on their area of ​​expertise, from managing stock portfolios to advising on taxation, estate planning, and other forms of personal finance.

How do you find a financial adviser?

There are many ways to find a financial advisor. You can start an online search, contact the National Association of Personal Financial Advisors, or ask your friends, family and colleagues for advice.

What is the cost of a financial advisor?

The cost of a financial advisor depends on several factors, including the type of advisor and the assets you need to help manage. There are three types of financial advisors, fee-based, fee-based, and commission-based. Some consultants charge a certain percentage of the assets they manage. For example, if the consultant charges 0.3% of $50,000 of personal assets, you will pay $150 per year.

Some financial advisers charge more than $400 per hour, but it depends on the adviser and what you ask them to do. Financial advisers are not necessarily cheap, but they can afford them, not only for the rich. Finally, a financial advisor should help you save or increase funds.

How much does a financial advisor make in a year?

According to the US Bureau of Labor Statistics, in May 2020, the median annual salary of personal financial advisers was $89,330 (the latest data as of June 2021).


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