2. Make a Plan for The Future
If the relationship between you and your advisor didn’t work out, it is time for you to create a new plan for your wealth and investments.
The first option is to start managing your own accounts. While some people prefer to do this, problems can arise. Most people don’t have the expertise that wealth advisors have in terms of helping you manage market uncertainty,estate planning,retirement planning, andtax strategy.
The second option is to hire a new advisor. The benefit of this is that an unbiased financial advisor can help manage the entire process offiring your current advisor and transferring your portfolio, so all you have to worry about is finding the right advisor for you.
Regardless of what you decide, you must start the preparation prior to firing your current advisor. If you are doing it alone, you need to organize all the paperworknecessary to move your investments to a new brokerage. If you hire a new advisor, they can manage this process for you.
3. Collect the Investment Records
Wealth advisors are legally required to transfer their clients their security historical records. If the client is transferring taxable investment accounts, they should also keep personal records of the cost basis of these securities. This amount will be included in their transferred accounts, but it never hurts for them to have it in their own records. This information is required when filling out income taxes.
4. Fire Your Advisor
This is the toughest part. There are many ways to deliver the news, you can write a personal note to them, email them, or call them. Whatever you feel most comfortable doing. No matter what method you choose, remember tospecify an end date.
Do your best to leave your emotions at the door. This is a business decision, and no matter how nice your advisor is, you are leaving for a reason. Remind yourself of that reason and keep any communications as brief and firm as possible.
If you go the call route, be prepared for some pushback. They might try to convince you to stay so the key is to let them know that the move is going to happen and you are just informing them of the decision that you have already made.
Example of an email:
“Hi (Advisors Name)
I want to thank you and express my appreciation for all your help over the past few years with my personal finances. At this time, I’ve decided to move my accounts to another advisor that I feel is a better fit for me as of (end-date). I wanted to notify you as you should be receiving the transfer requests shortly.
I wish you all the best.
Kind regards,
(Your name)”
Should You Fire Your Wealth Advisor?
Change is often uncomfortable, but remind yourself why you wanted to fire your advisor in the first place. It’s better to take action than to complain for decades, or worse – be concerned about who is handling your wealth.
If you are in the process of looking for a new advisor, have a look at our blog, How To Interview a Financial Advisor so that you can make the right choice.
