Is Your Financial Advisor Still Right for You? 9 Indicators It’s Time for a Change
By: Mireille Keshishian
Navigating the complexities of investments and personal finances alone can be overwhelming. That’s why a reliable financial advisor is essential in helping you achieve your financial objectives. However, there may come a time when your current advisor no longer aligns with your needs. Recognizing when it's time to make a change is critical for maintaining your financial well-being. While it's important to communicate your concerns with your advisor, if they fail to address an issue or aren't receptive to your feedback, it might be time to explore other options. This article will outline nine key signs that it may be time to switch your financial advisor.
1. Lack of Communication
A strong relationship with your financial advisor is built on open and regular communication. If it becomes difficult to get in touch with them, or if updates and meetings become less frequent without explanation, it may be a sign that you’re no longer a priority. Effective communication is essential when it comes to your finances, especially when navigating through volatile markets or significant life changes.
2. Misaligned Investment Strategies
Over time, your financial goals or risk tolerance may evolve. If your advisor continues to recommend investments that don't align with your current financial goals or risk profile, this could be a red flag. Your advisor should be adaptable, regularly reviewing and adjusting your portfolio to align with your evolving needs.
3. Lack of Transparency
Transparency in your fees, investment strategies, and potential conflicts of interest are crucial in any advisory relationship. Are you clear on how fees are assessed in your account? If there's any uncertainty, you should speak with your advisor. If they lack clarity about their compensation, or if you find undisclosed fees or commissions, it may be time to reconsider the relationship. Trust is the cornerstone of financial advising, and any lack of transparency is a serious red flag.
4. Inadequate Performance Tracking
A competent financial advisor should regularly review your portfolio’s performance against relevant benchmarks and provide you with a good overall report of your standing. If your advisor does not conduct regular performance reviews or fails to explain the reasons behind underperformance, it may be time to look for someone who will actively help you optimize your investments.
5. When You’ve Outgrown Your Current Solution
Starting with a robo-advisor or retail brokerage account might have been the right move when just getting started. However, as your wealth becomes more complex, your financial strategy should become more sophisticated. A professional advisor can offer the expertise and personalized approach that a DIY solution simply can’t match.
6. Transformative Life Events
Major life events such as marriage, children, the purchase of a home, or considering early retirement can significantly impact your financial situation. During these pivotal moments, it’s essential to have an advisor who can help you navigate the complexities and plan accordingly. As your life circumstances change, so too should your financial strategies. If your advisor offers a one-size-fits-all approach rather than personalized advice, they may not be doing what is best for you.
7. A Windfall or Liquidity Event
Similarly to a major life event, the sale of a business, receiving a large distribution, an IPO, inheritance, or any other event that results in a sudden influx of cash can be overwhelming. Managing a large windfall requires careful planning and strategic investment to ensure it supports your long-term financial goals. If you’re facing such an event, seeking a more experienced advisor may be crucial to managing this newfound wealth effectively.
8. Resistance to New Ideas
The financial world is constantly evolving, and new investment opportunities and strategies are always emerging. If your advisor seems stuck in their ways and resistant to exploring new ideas that could benefit your portfolio without a reasonable explanation, it may be time to make a change.
9. Ethical Concerns
If you ever feel that your advisor is not acting in your best interest, or if you have concerns about their ethical standards, it’s crucial to trust your instincts. Issues such as pushing unnecessary products for commissions, not fully disclosing risks, or any behavior that seems unethical are valid reasons to reconsider your advisory relationship.
Having the Right Financial Advisor by Your Side
Changing financial advisors is not an easy decision, but it is an important one if your current advisor is not meeting your expectations. Your financial well-being is important to you, and ensuring that you have the right advisor at your side, who communicates effectively, aligns with your goals, and adapts to your needs, is crucial.
If you decide to make a change or are simply seeking a second opinion, Simon Quick welcomes the opportunity to demonstrate how our approach to personalized financial management can make a significant difference in achieving your financial goals. Visit us online, call us at (973) 525-1000, or send an email to info@simonquickadvisors.com to discuss how we can support you.
About Mireille Keshishian
Marketing & Sales Analyst
Ms. Keshishian joined Simon Quick Advisors in July of 2023 and currently serves as an Analyst on the Marketing Team. She is responsible for website management, event coordination, social media initiatives, and the creation of new marketing materials.
Prior to joining Simon Quick, Ms. Keshishian served as a Marketing Associate at Ampla Technologies, Inc. supporting growing consumer brands through financial services. There, she honed her marketing skills and sharpened her work ethic while gaining invaluable experience working in financial services. Prior to joining Ampla, she worked at Viking Cruises as a Guest Services Specialist where she assisted clients with their inquiries and served as a mentor for new employees.
Ms. Keshishian graduated from the University of Southern California (USC) in 2019 with a B.A. in Psychology and a minor in Marketing. She was an active member of Psi Chi, The International Honor Society in Psychology, and worked as a Research Analyst at USC Rossier School of Education. In her free time, Mireille enjoys cooking, traveling, and exploring new places to eat in New York City.
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