How to fire your financial advisor

If you’re not satisfied with the investment returns and advice from your financial advisor, it could be time to make a change. Senior Personal Financial Correspondent Sharon Epperson has steps to take and some strategies to find a new one.

Breaking up is hard to do even when it comes to your relationship with your financial advisor but if the volatile stock market and your investment returns have you rethinking the advice you’ve been getting now may be the time to switch senior personal finance correspondent sharon epperson joins us with more and really a lot of people are thinking about this right now

Well there are a lot of advisors out there first of all so they’re plenty to choose from over 300,000 financial advisors in the u.s. managing nearly 20 trillion dollars according to siviglia so shi’ite and there was a study that ernst and young did it wasn’t looking at whether or not because of the market action most recently people were moving but what did they

Do in the last three years and half of clients of wealth management providers decided they wanted to make a switch and that includes with their banks or brokerages as well as their financial advisors and why they wanted a change wasn’t so much their investment returns but it was a life change it was them changing jobs or having a baby getting married receiving an

Inheritance these are some of the reasons why people decide that they need financial advice or they need better financial advice than what they’re getting you know that makes sense because for most people that’s the only time they think about these things is when you’re forced to think of the long-term action things that let’s do some housecleaning at this point

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Exactly what are some signs that your financial advisor might not be acting in your own best interest well your financial situation if it has changed you want to make sure the advice changes as well that that financial adviser understands your long-term plan and how that long-term plan may have changed keep in mind how much technology has changed over the last 10

Years has the financial planning firm kept up with software kept up with statements are they communicating with you regularly or just now they’ve gotten so big you just get a newsletter you don’t get a phone call or when you do get a phone call you’re getting they’re trying to sell you something sell you a product that they’re gonna then get a commission on and

That’s a key factor to have they explained to you the fees that you’re being charged and have they explained how they’re making money the key that you want to have for any financial advisor is to make sure that they uphold what’s called the fiduciary standard and that means that they’re putting your best interest as the clients ahead of their own not just trying to

Make money off you alright so there are 50 ways to leave your lover what’s the best way to get rid of your financial advisor if you think it’s tempered as always you have to plan ahead you have to make sure that you have all your documents in order and that includes you’re in bed smit documents but also your tax returns your insurance policies because you want this

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Advisor to give you a holistic view of what they’re going to do for you come next if you’re switching advisors meet with a couple different prospective new invited visors just like you would kind of ask around for a second opinion with the doctor you want to do the same when it comes to your financial advisor you want to have a conversation though out of courtesy

With your current advisor let them know what your concerns are let them know what you’re thinking about doing just because they may step up you never know maybe they’re going to feel like you again i’ve gotten this many bad vibes and you’ve treated me this badly for so long i’m not coming to you looking for a second so if you if you don’t want to do that then put

It in writing here’s my note that says i want all my money and i would exact exactly so put that in writing say you want to close your accounts and the new advisor should be able to handle all of that you shouldn’t have to be able to be handling that paperwork yourself depending on where the investments are held and depending on what the the advisory firm the new

Advisory firms policy is you shouldn’t have to really incur any additional costs no tax consequences and you shouldn’t have to sell the investments you may have to pay a small termination fee but by and large it should be a seamless process many people do it and just make sure that you’ve really checked and an interviewed and reviewed the new advisor to make sure

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This is gonna be the right fit sharon thank you sure be strong you can do it you can do it you you

Transcribed from video
How to fire your financial advisor By CNBC Television