Finding the right financial advisor for your specific needs can be challenging. Even when you think you’ve found the right one, you may start noticing key signs that it’s time to change wealth managers. 

If there’s a pattern of weak portfolio performance, bad advice, lack of communication, or a misalignment between your financial goals and what’s being done to reach them, it’s time to consider going your separate ways.

At Avidian Wealth Solutions, our relationship with our clients matters. We are a fiduciary financial firm that aims to make a positive impact on each family we serve –– and we want to make sure whatever wealth management firm you work with shares those same values. Here are our top five things to look for when considering changing your financial advisor.

5 reasons to change financial advisors

1. You’re making major changes to your finances

This could come in the form of retirement, divorce, acquiring a new business venture, or even an event that causes an influx of wealth. Different stages of life require evolving financial strategies. For example, when nearing retirement, rather than placing the focus on accumulating wealth, it’s time to start preparing for your investment savings to take the place of your paycheck. 

When it’s time for your financial plan to progress, your advisor should be able to grow with your changing needs. If they aren’t able to or willing to, it’s time to find a new wealth manager.

2. Changes are made to your portfolio without your approval 

You pay an investment manager to trade stocks for you, but if you notice big decisions getting made without your input, it’s time to change wealth managers. Along the same lines, it may also be cause for concern if you notice that too many changes are being made. Some financial advisors get paid through commissions for recommending a product.

3. You don’t know how they get paid

In order to build a relationship founded on trust, you need to have a good understanding of what you’re paying for. Ideally, your financial advisor should be fee-based and not make decisions based on commissions. Regardless, your wealth manager should be able to clearly explain their costs. If they can’t, something is off.

4. Your solutions don’t align with your specific goals

Whether you’re a business owner or a high-net-worth individual, you don’t want a financial advisor that starts with a cookie-cutter approach to see if it works. A good comprehensive or customized financial plan takes consideration of your risk profile, high-net-worth tax strategies, expected or current retirement expenses, investment returns, and more. These goals should be evaluated regularly and your financial plan should be adjusted to meet them.

5. Your financial advisor is hard to reach

When was the last time you got a call from your current financial manager? If you can’t remember, it’s been too long. You know when to change financial advisors because communication is a one-way street. They don’t reach out to you, or you have to wait days for a response. Being able to rely on your advisor is critical for getting the information you need to make life or business decisions.

So, how often should you meet with your financial advisors? Your financial planner should be reaching out to you at least once every three months. During the in-between, they should be regularly and meticulously managing your portfolios and reassessing your financial risk management.

How to switch financial advisors

Explaining to your current advisor that you’re leaving might make for an uncomfortable situation and you may be bound to certain agreements regarding your leaving. Before officially terminating the advisor-investor relationship, you’ll want to read over your management contract and verify you won’t owe them a termination fee. You’ll also want to be sure that all of your investment records are transferred to your new advisor.

Be sure to talk to your new advisor about how they handle transfers. They may be able to handle all of the paperwork, request the funds, transfer investment accounts, or make suggestions on the best time to leave per your initial contract and fee timing.

Questions to ask when changing financial advisors

If you’re thinking about exploring other financial advisors, here are three questions to ask them:

  1. Are you a fiduciary? A fiduciary financial advisory firm is legally obligated to act in your best interest, providing you with the highest standard of care.
  2. How do you get paid? Working with a wealth manager that’s fee-based can help avoid conflict of interests.
  3. What are your qualifications? Avidian’s multidisciplinary team is made up of Certified Financial Planners, CPAs, investment specialists, investment analysts, and estate planning specialists.

Looking to change wealth managers? Avidian Wealth Solutions does more than just manage your money.

At Avidian Wealth Solutions, we take pride in how we do business. Our fiduciary financial advisors in Houston work in highly credentialed, specialized, and experienced teams to understand your goals and offer you comprehensive financial planning.

As a fee-based, independent fiduciary wealth management firm, we are legally required to act in your best interest. Request a meeting to see if we are a good fit today!

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Disclaimer:

Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Avidian Wealth Solutions, LLC), or any non-investment related content, referred to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from Avidian Wealth Solutions, LLC. Please remember to contact Avidian Wealth Solutions, LLC, in writing, if there are any changes in your personal/financial situation or investment objectives to review/evaluating/revising our previous recommendations and/or services. Avidian Wealth Solutions, LLC is neither a law firm nor a certified public accounting firm and no portion of the newsletter content should be construed as legal or accounting advice. A copy of Avidian Wealth Solutions, LLC’s current written disclosure statement discussing our advisory services and fees continues to remain available upon request.

Financial Planning and Investment Advice offered through Avidian Wealth Solutions (Avidian), a registered investment advisor. Avidian does not provide tax or legal advice and the information presented here is not specific to any individual’s circumstances. To the extent that this material concerns tax matters or legal issues, it is not intended or written to be used, and cannot be used, by a taxpayer to avoid penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

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