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Book a FREE consultation
and receive your complimentary eBook

Get started with a free strategy consultation and receive a copy of the Good Fortune Guide – written by James McFall, Managing Director Yield FP and 2020 National Finalist Certified Financial Planner of the Year to help educate you on your Financial Plan.

How to Switch Financial Advisors

Wealth Creation Investment planning needs great foresight with a structure that is bespoke for your needs and a portfolio that is in line with your risk profile and considerate of what you are comfortable with.

Financial Advisors are there to help you navigate big financial decisions and plan for your future. However, if your financial planner isn’t fitting your needs and objectives, or you’re unhappy with the performance of your investments, you may want to know how to switch financial advisors. 

Firstly, if you are thinking of changing financial advisors – know that you’re not alone. According to a recent study, almost 60% of investors have switched financial planners at least once. There are many reasons you may be unhappy with your current financial advisor. Poor performance, high fees, bad advice, or lack of communication. Whatever the reason, if you’re contemplating changing financial advisors, it’s important to be familiar with the process and potential costs it may come with.

When Should I Switch Financial Advisors?

As stated above, there are many reasons people consider changing their financial planner. If you’re already thinking about changing, it may be opportune to begin shopping around for someone new. Your finances are important, and shouldn’t be managed by someone you’re not confident in. 

Some signs that may prompt you to look for a new finance professional include:

Bad Communication

Handing over your hard-earned money can be daunting! Lack of communication from your financial planner only adds to the stress. You shouldn’t have to continuously wonder if your finances and investments are being taken care of correctly. It is your advisor’s job to reach out to you for any questions, queries, or issues you may have. If you’re not hearing from your financial advisor regularly, it might be time to look elsewhere. 

how to switch financial advisors

High Fees

Paying a professional for their advice is smart, but how do you know you’re not overpaying? It can be wise to shop around to compare prices to ensure you’re not paying unnecessary costs. In order for your advisor to help you achieve your financial goals, you will need to be transparent and honest regarding your money. Likewise, they need to be just as honest with you. Your advisor might not be fully clear with you about all the costs and fees that come with managing your finances, and this can eat away at investment performance. This is why knowing exactly how much you pay and why is crucial. 

Risk-Taking Outside of Your Risk Profile

If your planner has been gambling with your investments and investing outside of your risk profile, it could be a good time to reevaluate your relationship. All investment products have a risk profile, and the product must suit your risk tolerance to be beneficial for you. It’s your financial advisor’s responsibility to recommend investment and financial products that fit inside your risk criteria. 

how to switch financial advisors

How Do I Change Financial Advisors?

If you’ve decided you want to switch financial advisors, it’s important to understand all the relevant steps to ensure a seamless transition. 

Changing advisors is typically fairly straightforward. The change entails notifying your current advisor and signing an agreement with your new firm. There shouldn’t be any additional costs associated with the switch, however, there may be costs involved with any changes in recommended products.

The most difficult step will most likely be choosing your new advisor, one that is in line with your goals and objectives. When choosing your new financial planner, it’s imperative to make sure that they evaluate their understanding of you and get to know you. In order for an advisor to really understand your situation, they will require records and information regarding you and your investments. These can either be provided by you directly, or your new advisor can source the information. 

While you’re at it, it also might be a good time to reevaluate your current strategy and see if your new advisor has any new ideas or investment opportunities.

Yield Financial Planning Is Here To Help

If you’ve sought the advice of a finance professional, it’s likely you expect your money to be working harder for you, not the other way around. If this article resonates with your situation, and you’re in the position of looking for a new advisor, the team at Yield is here to help! Contact us below to begin the conversation.

Important Note
Any information provided here is general advice only and does not consider your objectives, financial situation or needs. This information should not be taken as comprehensive and does not constitute legal or financial advice. You should seek legal, financial or other professional advice before relying on any content. Yield Financial Planning is not responsible to you or anyone else for any loss suffered in connection with the use of this information. Information is only current at the date initially published.
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About Yield - Financial Planner Melbourne

Who we serve – We help time poor professionals and business owners who intuitively know they should be doing more to improve their financial position and are seeking an expert to guide them on financial planning strategies. Our clients want personalised financial planning advice and to feel empowered and confident that they can achieve a secure transition to retirement.

What we do – We gain a deep understanding of your current financial position and preferences, what you value and want to achieve. We then help you develop a highly personalised financial plan, to show you how to make your money work harder for you. Ongoing we regularly monitor and measure progress against your plan projections, to show you how you’re tracking and help you manage change to your advantage.

How we do it – We apply our proven expertise in investment markets (Shares & Property), Tax and Debt structuring, Retirement Planning, Risk management and Estate planning, to help you reorganise the way you use your money to achieve your desired outcomes.

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