Announcement

Collapse
No announcement yet.

Ending Relationship with Financial Advisor

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Ending Relationship with Financial Advisor

    Does anyone have advice on how to end a relationship with a financial advisor.  We have been using someone from Raymond James for a few years.  We have close to 500K with them in several accounts (IRAs, Brokerage, 529).  We have decided that the percentage that he takes is too much.  We are trying to start directing our own investments with Vanguard.  I want the transition to be quick and without hassle.  Is there any chance the financial advisor could try to do something unethical/illegal with our funds after we announce our plans to stop using his services?  What's the best approach/phrasing to this inevitably uncomfortable interaction?  Should we have new IRA and brokerage accounts opened at Vanguard in preparation for the transfer?

  • #2
    I moved from Merrill lynch to Vanguard a few years ago.  Just call Vanguard and tell them what you want to do.  You will qualify for a flagship account which gets improved customer service.  They will do it and you never have to speak to your Raymond James guy again.

    Comment


    • #3
      I agree with the above. Vanguard makes the process incredibly easy to transfer. Expect that you'll likely get an email/call from the advisor. Let him know that it's nothing personal, just business. I expect him to try to make it personal. Remember, you don't owe him a reason or explanation.

      Comment


      • #4
        I need to do a guest blog entitled, "50 Ways to Leave Your Broker".

        If he does anything inappropriate/illegal, he can go to prison, and that is usually a pretty good deterrent. He is accustomed to being dumped; it's just your first time for dumping him.

        Do the work with Vanguard, and when the process is underway, shoot him a note telling him that you appreciate the work he has done for you in the past, but you have decided to move in a different direction. No need for a phone conversation. Oh, yeah, you should probably unfriend him on Facebook.

        Comment


        • #5
          I used Vagabond’s method in leaving a Merrill advisor. I found telling him I was going in another direction and that I didn’t want him to just receive a transfer request made me feel honorable about it. Of course it’s not necessary, but that’s how I’d like to be treated if the shoe were on the other foot. He was very understanding; I’m sure not every advisor would be.  But a short appreciative notification doesn’t require a conversation beyond that.

          When I left my proverbial “college roommate who is now a financial advisor” - actually a good guy, smart, but not what I wanted anymore - it required more of a real conversation. Another good reason not to mix business and friendship.
          My Youtube channel: https://www.youtube.com/channel/UCFF...MwBiAAKd5N8qPg

          Comment


          • #6
            Thank you everyone for your great advice. I was initially thinking of a face-to-face meeting but this sounds like it’s not really the best way to do it. I think I will probably go with a short appreciative email Instead of face-to-face meeting or phone call. Either way I am going to test out the waters with Vanguard for the next 3 to 6 months before any major changes. Thanks again.

            Comment


            • #7




              Thank you everyone for your great advice. I was initially thinking of a face-to-face meeting but this sounds like it’s not really the best way to do it. I think I will probably go with a short appreciative email Instead of face-to-face meeting or phone call. Either way I am going to test out the waters with Vanguard for the next 3 to 6 months before any major changes. Thanks again.
              Click to expand...


              The water is fine. Jump in!

              Comment


              • #8
                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

                Comment


                • #9


                  Does anyone have advice on how to end a relationship with a financial advisor.
                  Click to expand...


                  I prefer to do it over text or, better yet, Facebook with something along the lines of, "it's not you, it's me...and my dislike of those fees you're charging..."

                  I kid.

                  You are taking the DIY plunge--congrats! While it seems and is scary, there is a ton of guidance/resources available online including WCI's blog and this forum--make use of it all!

                  Comment


                  • #10





                    Does anyone have advice on how to end a relationship with a financial advisor. 
                    Click to expand…


                    I prefer to do it over text or, better yet, Facebook with something along the lines of, “it’s not you, it’s me…and my dislike of those fees you’re charging…”

                    I kid.

                    You are taking the DIY plunge–congrats! While it seems and is scary, there is a ton of guidance/resources available online including WCI’s blog and this forum–make use of it all!
                    Click to expand...


                    Yea, it's definitely easier to dump them when you have a four figure portfolio like I had back in 2004 when I fired mine. But it's something most of us have been through at some point. You'll be fine. A year from now you'll wonder why you even worried about it.
                    Helping those who wear the white coat get a fair shake on Wall Street since 2011

                    Comment


                    • #11










                      Does anyone have advice on how to end a relationship with a financial advisor.
                      Click to expand…


                      I prefer to do it over text or, better yet, Facebook with something along the lines of, “it’s not you, it’s me…and my dislike of those fees you’re charging…”

                      I kid.

                      You are taking the DIY plunge–congrats! While it seems and is scary, there is a ton of guidance/resources available online including WCI’s blog and this forum–make use of it all!
                      Click to expand…


                      Yea, it’s definitely easier to dump them when you have a four figure portfolio like I had back in 2004 when I fired mine. But it’s something most of us have been through at some point. You’ll be fine. A year from now you’ll wonder why you even worried about it.
                      Click to expand...


                      Yup, I have left two in the past. Four figures? They may have been happy to see you go!

                      I believe it was Phil DeMuth who wrote:

                      "A financial advisor is a guy that somehow lands in your lap, and once you find him there, you often have a tough time getting him off your lap."

                      (or something witty along those lines)

                      Comment


                      • #12




                        “A financial advisor is a guy that somehow lands in your lap, and once you find him there, you often have a tough time getting him off your lap.” (or something witty along those lines)
                        Click to expand...


                        I think he landed in your wallet (or my purse).

                        Comment


                        • #13
                          they will often try to make it really personal.

                          you should view that as powerful evidence that you are making the right decision.

                          that said, i find that when i've severed ties with people over the years (former bosses etc) a nice bottle of scotch and a handwritten note of thanks goes long way towards keeping things friendly.

                          Comment

                          Working...
                          X