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  • Firing Financial Advisor

    So I'm seriously considering firing my current financial advisor.  Old story that many on this forum have probably already heard.  Whole life insurance with annuities, etc, etc.  The more I read the more I'm convinced that I need to find a new financial advisor who works on an hourly rate (or at least some form of payment other than selling me insurance products).  My question is, how do you go about firing a financial advisor?  I would obviously send written notification, but does it need to be some sort of legal document that clearly states they no longer have access to my financial data/accounts?  Are they obligated to provide me closing records or to pass records to my new financial advisor the same way would have to send medical records to a new provider?  Any advice you have on the best way to go about this greatly appreciated.


     


  • #2

    https://www.whitecoatinvestor.com/how-to-fire-your-financial-advisor/

    Helping those who wear the white coat get a fair shake on Wall Street since 2011

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    • #3

      Be sure to read the document/contract you signed with your current advisor that established your relationship.  It should tell you if there are requirements to terminate the relationship, such as 30-days written notice.  I had a new client come on board recently and their old advisor's document permitted them to charge two months worth of fees due to the "written termination" requirement.  The old advisor waived it. Honestly, most advisors are happy to help a departing client move as quickly and easily as possible. They would rather the client be gone than get a complaint or bad mouthed to other potential clients.


       


      It is probably worth asking the current advisor to send you the most recent statements and documents for any investments, including insurance policies, before you give them notice or transfer any accounts.  Tell them you need it for your attorney or CPA or stick in your safe deposit box.  Actually, you don't have to tell them anything.  It is your stuff and they have to provide you what you request.  You will need these statements for your new advisor so they can work with you to transfer everything.  Let the new advisor do the work on transferring.  This is part of the fee you are paying him or her. 


       


      Again, most advisors are happy to help departing clients leave ASAP.  Most people don't even tell their old advisor they are leaving.  The old advisor simply realizes it when they get the transfer paperwork.  And, if your current one is halfway competent, they will know it is coming.  If you have statements it should be relatively painless.  And, if everything you own is an insurance product you can always just deal with the insurance company directly.


       


      Finally, if he gives you any whining just tell him it's you, not him   

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      • #4

        You should approach the plan with the end point of not using any advisor.

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        • #5


          Are they obligated to provide me closing records or to pass records to my new financial advisor the same way would have to send medical records to a new provider?
          Click to expand...



          Why do you need a new financial advisor? Is there anything you have identified that makes you need one. You need to develop a clear plan of action before you switch or else you might not be happy with the new one. If you do get one make sure it is fee only and not fee based.

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          • #6
            Thanks for the advice.  I'm looking for a new advisor in order find one that's fee only and not trying to sell me on funds/plans from which he gets a commission.  I may eventually get to a point to where I don't need a financial advisor, but I realize that I'm definitely not there yet.

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            • #7




              Thanks for the advice.  I’m looking for a new advisor in order find one that’s fee only and not trying to sell me on funds/plans from which he gets a commission.  I may eventually get to a point to where I don’t need a financial advisor, but I realize that I’m definitely not there yet.
              Click to expand...


              That is a great approach!  Your advisor should be helping you get to the point where you no longer need him/her.  Nothing we do is rocket surgery 

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