Is it Time to Fire Your Financial Advisor?
Ending any relationship is never fun, but once you realize your financial advisor is not right for you, it is time to move on. You will only hurt your finances if you insist on the relationship. Following are five signs it is time to fire your financial advisor and start looking for a more competitive one.
- They are unavailable.
You trust your financial advisor with your money. As such, you must be able to reach them at any time 24/7. Responding to your concerns and questions is their job and responsibility. Some financial decisions cannot wait. But if your financial advisor never answers the phone or is never in the office, then you may be missing out on opportunities that can improve your life. You are literally cutting yourself from your own money by allowing them to ghost you.
- They do not listen.
While their expert opinion matters, it is useless if they do not understand where you are coming from and what your needs are. Your financial advisor must understand your situation and choose investments to fit it. If they do not pay attention to you, then it is a problem. It is a must that they seek your input on how to handle your money, understand your financial goals and come up with a matching strategy, respect your tolerance for risk, and never oversell you.
- You cannot understand them.
A good financial advisor is able to explain things on terms that you understand. Unfortunately, many advisors forget that clients are regular people who cannot be expected to know financial jargon. If your advisor cannot explain investments in plain English and does not care whether you understand or not what is happening with your money, fire them.
- They hide things from you.
Your financial advisor must be transparent with you regarding the following concerns: how they make money from you, how much you are paying in fees, why they recommend certain investments, and where your money is being held. All these are common information that you have to know. If your financial advisor does not share these information, then you could be paying more than you need in fees, getting lower returns, or being led into a scam. Watch out!