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How to Switch Financial Advisors

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Our Services Your financial planning relationship should be delivering great financial outcomes and should be fair and equitable in what you are charged.

Financial Advisors exist 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 or cost, you may want to know how to change financial advisors. 

If you are thinking of switching financial advisors – you’re not alone. According to a recent study, almost 1 in 5 people have switched financial planners since 2020 and 1 in 4 have considered it. 

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 that may come with it. This blog explains the steps you may take to switch financial advisor.

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 valuable, 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 financial 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 financial planner has been gambling with your investments and investing outside of your risk profile, it could be a good time to re-evaluate 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 or strategies.

The most difficult step will most likely be choosing your new financial 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 re-evaluate your current strategy and see if your new advisor has any new strategy ideas or investment opportunities.

Yield Financial Planning is Here to Help

Yield is a multi award winning firm with over 80+ 5 star google reviews.

We are transparent with what we charge and regularly outperform our benchmarks.

The thing our clients regularly tell us they love about our service is how responsive we are, which is cultural for us. What you will get from Yield is a highly responsive and personal touch.

We are also highly qualified. We are an FAAA professional practice, have CFP advisers and degree holders, along with specialist qualifications.

To discuss how Yield can help you, book your consultation today 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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Free Consultation

Free Consultation

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.