Let's face it: relationships don't always work out. This is as true with financial advisers as it is with hair stylists, physicians, and high school romances. But what should you do when things aren't working out well with your financial adviser? Is there a way to break up with your financial adviser and "still be friends"? There is. You can relax because financial advisers are professionals who know that they're not the right fit for every person. Still, breakups can be tough. Your finances are personal, and there might be things your financial adviser knows about you that no one else does. You also may have developed a friendship over the years, and if your financial adviser is a neighbor or family member, the breakup may feel especially awkward. To help ease the pain, we've put together some tips to help you get out of a non-productive relationship with your current financial adviser so you can move on to an adviser who will help you to grow. Understanding why you need a new financial adviser not only helps you to explain why you're breaking up, but it also helps you to have the confidence to make the move. Here are some examples ofdifferentiatorsthat may apply to your situation: Once you know and understand the specific reasons you want to move to a different financial adviser, you'll be able to explain it to others, and you'll have more confidence in your decision. When you break the news to your financial adviser, keep it brief and professional. Thank your adviser for his or her help in the past, and explain that things have changed and you're moving on. If you want to share the specific reasons that explain your move, go ahead and do it. But don't feel obligated to explain. It's your money and your decision. You can keep your reasoning to yourself if you want to. That said, your financial adviser may not want to let you go easily. Losing your business doesn't just hurt your adviser's pride; the loss will also hurt his bottom line. So it's more than reasonable for him to try and keep your business. Be polite and respectful. Hear your financial adviser out. But if you've firmly made up your mind, just explain that you really do appreciate the work they’ve done for you in the past, but your mind is made up: it's time for you to go now. If this sounds all too confrontational, perhaps a phone call alerting your adviser of your decision is enough. This might not work so well if you have a long-established personal friendship. In fact, such a move could mark the end of a long-established personal friendship, but if your relationship with your financial adviser is formal and strictly business, there's nothing wrong with the “phone call” version of a break-up. Yes, breaking up can be hard to do, but sometimes it's necessary for you to spread your wings and take your finances in a healthier, more profitable direction.1. Find the Differentiator
2. Keep It Professional
3. Be Prepared for Pushback
4. Slip Away If You Must
FAQs
How To Break Up With Your Financial Adviser? ›
Contact your advisor, thank them for their service, and ask for transfer-out paperwork- I understand you may not want to talk to the advisor you are leaving. Breaking-up isn't exactly fun. In my opinion, letting your advisor know you are leaving them is the right thing to do. A call will do.
How do you end a relationship with a financial advisor? ›You can either call or email your advisor - but letting them know you're leaving and why is a nice thing to do. Your new advisor will actually do all the work of transitioning the accounts for you. A simple email like this would work great...
How do you end a contract with a financial advisor? ›In most cases, you simply have to send a signed letter to your advisor to terminate the contract. In some instances, you may have to pay a termination fee.
How do you get out of a financial advisor? ›While you don't have to inform your advisor of your intention to leave technically, it's a courteous gesture. Reach out in any way you feel comfortable. Whether you send an email, place a call, or set up an in-person meeting, make sure to communicate your desire to end the relationship clearly.
When should you leave your financial advisor? ›Poor performance, high fees, strained communication and stagnant advice are among the reasons to look for a new advisor. Kevin Voigt is a former staff writer for NerdWallet covering investing.
How do you politely end a professional relationship? ›Be respectful: Keep your tone polite, and avoid being overly critical. Be professional: This is not the time to vent about all of your grievances. Be professional and keep your emotions in check. Offer to help: Suppose you can offer to help them transition to a new service provider.
Why do people leave their financial advisor? ›Underwhelming performance is a common reason clients leave financial advisors. Your client may expect a certain rate of return, for example, and be disappointed when you're not able to produce it.
What if I am not happy with my financial advisor? ›You're paying for a professional service, and if you're not satisfied, it's time to make a change. Notify them, on your terms: While it's not technically required, you should politely and respectfully inform your advisor that you're making a change. Keep it brief and professional.
How often do people switch financial advisors? ›How often do people switch financial advisors? People often switch financial advisors when they experience significant life changes or feel their current advisor is no longer suitable, but there is no set frequency for making such a change.
How much does it cost to fire a financial advisor? ›The only transfer fees are typically what the other custodian charges. Often, it's $50 to $150 per account. Your new financial advisor should be able to help with the transition. Lean on them and their expertise to guide you through the process.
Should you tell your financial advisor everything? ›
It might come as a surprise, but your financial professional—whether they're a banker, planner or advisor—wants to know more about you than how much money you can invest. They can best help you achieve your goals when they know more about your job, your family and your passions.
Does a financial advisor have control of your money? ›Under the rule, financial advisors have custody of client assets when they hold client funds “directly or indirectly” or have the “authority to obtain possession of them.” This includes deducting fees from a client's account.
What to say when changing financial advisor? ›You typically don't need to talk to an advisor after you decide to leave. Your advisor may try to “save your business” and talk you out of your decision. The more pushy somebody is, the less beneficial these discussions tend to be. Simply say, “I've made my decision, and I wish you the best,” and end the conversation.
Why do investors break up with their financial advisors? ›They just don't communicate
In another survey, the top reason advisors said they'd been fired by their clients was lack of timely communication.
You're paying for a professional service, and if you're not satisfied, it's time to make a change. Notify them, on your terms: While it's not technically required, you should politely and respectfully inform your advisor that you're making a change. Keep it brief and professional.
Is it unethical to date your financial advisor? ›He did not meet his duty of loyalty to act in her best interests nor his duty of care to provide objective advice with skill and diligence. Sexual relationships between clients and advisers violate professional standards in the same way they would between doctor and patient, or student and teacher.