2. Make a Plan for The Future
If the relationship between you and your advisor doesn’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 lack wealth advisors’ expertise to manage market uncertainty, estate planning, retirement planning, and tax strategies.
The second option is to hire a new advisor. The benefit of this is that a financial advisor can help manage the entire process of firing your current advisor and transferring your portfolio, so all you have to worry about is finding the right advisor for you.
Regardless of your decision, you must start preparing before firing your current advisor. If you are doing it alone, it’s a good idea to start by organizing all the paperwork necessary 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
Custodians are legally required to transfer their client’s 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 most challenging 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 to specify 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 that 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 remember why you thought of firing 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.
Disclosure: This material provided by Zoe Financial is for informational purposes only. It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy, or investment product. Nothing in these materials is intended to serve as personalized tax and/or investment advice since the availability and effectiveness of any strategy is dependent upon your individual facts and circ*mstances. Zoe Financial is not an accounting firm – clients and prospective clients should consult with their tax professional regarding their specific tax situation. Opinions expressed by Zoe Financial are based on economic or market conditions at the time this material was written. Economies and markets fluctuate. Actual economic or market events may turn out differently than anticipated. Facts presented have been obtained from sources believed to be reliable. Zoe Financial, however, cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. Zoe Financial does not provide legal advice.
