3 Signs You Should Fire Your Financial Advisor (2022 Edition)

As looming economic recession becomes less of a hypothetical and more of a reality, signs of an insufficient financial support system might make you want to fire your financial advisor. While pivoting to a brand-new advisor can seem like the last thing you want to do, in this economic climate, you need an advisor who is qualified and available to help you weather the storm. People have begun to question the viability of their relationships with their financial advisors more than ever. Is your financial advisor truly concerned with your best interests? How do you know if your financial advisor is doing a good job? Should you consider making the switch? 

A strong relationship with your financial advisor is built upon consistent communication, open collaboration, and unwavering consideration for you and your goals — especially during times like these. If you’re wondering if it’s time to change wealth managers, Avidian Wealth Solutions is here to share three signs that you should pivot to another financial advisor.

1. You haven’t heard from your financial advisor

One of the most essential signs of a good financial advisor is that they contact you regularly to check in. The markets can be fickle, and you may need to pivot financial strategies to prepare for an upcoming recession…but how can you begin that process if your financial advisor is hard to reach? A financial advisor should be attentive and proactive in helping you prepare for what’s to come. If you have not heard from your current financial advisor to discuss asset protection and other protective strategies, it’s probably time to discuss how to switch financial advisors. 

2. Your advisor does not have plans for an economic downturn

When faced with mounting economic risk, your financial advisor should be willing and prepared to adapt your current financial plan to the changing times. Picture this: you finally get in touch with your current advisor and ask what their plans are to approach the upcoming recession, and they go silent. Crickets. You realize that your advisor doesn’t know how to help you if and when a severe economic downturn occurs.

This kind of behavior from a financial advisor is a red flag because it clearly shows that your financial advisor is not concerned with the safety of your finances and only knows how to make the most of a hot market. Your assets, your investment portfolio, your retirement plan, etc. are now potentially at risk, and while you can never completely eliminate risk, it is the duty of your financial advisor to plan for it.

3. Your advisor is on autopilot

In order to achieve both short- and long-term goals, financial advisors should leverage both passive and active investment vehicles to craft a successful portfolio for you and your needs. Unfortunately, in the face of economic turmoil, not all advisors can adapt to the new market standards and may continue managing your investments as if nothing has happened. This is what we refer to as “going on autopilot.”

It’s important that you work with a proactive investment management group focused on optimizing your portfolios based on market conditions, like adjusting to a more active approach during a bear market or scaling back activity when securities rise.

Avidian Wealth Solutions adopts the active investment approach in economic climates like these to try to maximize your returns. Our team is fully equipped and ready to monitor and reallocate every position within your portfolio as necessary. As fiduciaries, we work diligently to optimize returns for you and your investments while focusing on your goals and objectives.

What to look for in a financial advisor during a recession

You need to be confident in your preparation entering a period of economic uncertainty. Hiring a financial advisor that you can trust is critical in unpredictable markets. When seeking out potential new advisors, be sure to look for the following qualities:

• They are a fiduciary: A fiduciary financial advisor is held to the fiduciary standard of care that legally obligates them to put your interests and needs before anything else. They will not turn you away when times get tough. When you work with a fiduciary advisor, you can rest assured that your assets are in trustworthy, capable hands.
  
  
• They tailor financial plans to your needs: Every individual is different, so why do some financial management firms offer their clients one-size-fits-all solutions? Whether you need assistance with retirement planning in Houston, Houston tax planning, or an investment manager, Avidian Wealth Solutions tailors every portion of your financial plan to you.
  
  
• They are fee-based: Working with a wealth manager that’s fee-based can help avoid conflicts of interest.

Looking to fire your financial advisor? Trust Avidian Wealth Solutions to assist you during a recession.

In times of economic uncertainty, you need a financial advisor that you can rely on. If any of the signs above sounded familiar to you, it may be time to pivot to a new financial advisor.

Avidian Wealth Solutions is a Houston-based high-net-worth wealth management firm that can assist you in switching financial advisors and begin proactive planning for the upcoming economic recession. We understand that this can be an unsettling and unpredictable time for you, but with a fiduciary financial advisor from Avidian, you can spend less time worrying and more time enjoying the things you love. 

Ready to get started with Avidian? Request a meeting and a free portfolio audit to see if we could be a potential fit for you.

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• What is the Capital Gains Tax in Texas?

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