Saying Goodbye to Your Financial Planner: When It’s Time to Move On

Summary: When to Say Goodbye to Your Financial Planner

If your advisor isn’t meeting your expectations, it may be time to move on.

Top Reasons to Switch Advisors:

• Poor-quality advice or lack of personalized service
• Weak communication or delayed responses
• Misaligned risk tolerance or investment strategy
• High or unclear fees, especially commission-based
• Not a fiduciary—no legal duty to prioritize your best interests

Looking for a better fit?

Dechtman Wealth Management offers fiduciary, fee-only financial planning tailored to you.

Financial advisors can have a huge influence on the personal finances of their clients, from short-term investment decisions to long-term retirement planning. At the very least, clients should feel satisfied with the overarching strategy and more granular decisions their advisors make.

Many advisors provide useful guidance and help steer their clients toward their goals. However, not every advisor and client are a perfect match. If an advisor doesn’t provide reliable service at a reasonable cost, or if their efforts to communicate and share updates are often lacking, clients should consider their options.

In some situations, it may be better to switch financial planners and find a new provider. So, what are some financial advisor red flags? Let’s take a closer look.

Signs it May Be Time to Say Goodbye to Your Financial Planner

Morningstar conducted a survey of 184 people who ended their relationship with their financial advisor. None of the reasons why the individuals in this group are particularly surprising. However, it does provide valuable insight into the issues that most often push people toward finding a new financial advisor.

According to the survey, the leading reason for finding a new financial planner was issues with the quality of financial advice and services provided. This issue led 32% of the survey respondents to seek a new advisor.

The overall quality of the relationship was the driving factor for 21% of respondents, while 17% cited the cost of services. Issues with investment return performance, a client’s feeling that they could better handle finances on their own, and communication issues rounded out the frequently cited concerns.

It’s not surprising that these problems are common motivators to find a new financial planner. While the foundational goal of choosing an advisor is to support good wealth management and help clients reach their financial goals, it’s only possible to reach that goal with a stable, partnership-focused relationship with an advisor.

This is all to say that the overall quality of a relationship with a financial advisor is crucial. Consistent and positive returns are important, but they’re not the only reason you should consider finding a new professional to help with managing your money.

Lack of Good Communication

As The Week points out, communication is foundational in all relationships, including the client-advisor partnership.

Financial planners provide a service that centers on your financial resources – the money and assets that support you now and far into the future. Even strongly positive returns can leave you feeling left in the dark when it comes to your finances when communication is poor.

When an advisor is slow to respond to questions or doesn’t provide updates regularly or in a reasonable timeframe, it’s only natural to feel upset or let down. Switching advisors could allow you to look for potential advisors who prioritize you and recognize the importance of keeping you informed.

Lack of Alignment

Mutual understanding is vital to a strong relationship between a financial advisor and a client. Your personal risk tolerance is your preference and should be respected by your advisor. Part of the service these professionals provide is offering guidance and making decisions that align with your needs and priorities – not just choosing what they think is best.

For example, if an advisor provides strong returns but does so with higher-risk investments than you’re comfortable with, that’s a clear lack of alignment. Sure, the result is positive, but it shows a lack of care and alignment on the part of the advisor.

Switching financial advisors can be a key step toward finding a consistent level of alignment. That means your assets aren’t only managed well in a general sense but are used in a way that aligns with your personal preferences and needs.

Excessive Fees and Costs

Qualified financial advisors provide a valuable service and deserve to be compensated in return. However, there is a difference between reasonable and excessive costs and fees.

Some advisors who operate on a commission model are incentivized to steer clients toward products where they gain a financial benefit from the purchase. That’s just one of many situations to consider, but it’s an especially important one. Are there less-costly alternatives that make more sense for your financial goals, and is your commission-based advisor considering them?

Financial advisors who charge a flat fee don’t have that incentive in place. Choosing a fee-only advisor doesn’t guarantee exceptional performance, but it does remove an advisor incentive that may or may not align with your best interests.

Lack of Fiduciary Duty

A fiduciary has an ethical and legal duty to act in the best interests of their clients. They are obligated to be honest, transparent, and act in good faith, as well as immediately make clients aware of conflicts of interest.

Not all financial advisors are fiduciaries. This is not an obligation for professional advisors but an optional commitment that some choose to make. Non-fiduciary financial advisors may not always act in their client’s best interests or always make decisions that put their clients first.

Working with a fiduciary financial advisor doesn’t automatically mean you and the advisor will build an effective relationship. However, choosing a fiduciary advisor means avoiding situations where an advisor focuses on their own profit and doesn’t put a client’s needs and goals first.

Finding a Reliable Financial Planner

If it’s time to say goodbye to your current financial planner and find a new one, Dechtman Wealth Management may be the right partner for you. Our fiduciary financial advisors prioritize good communication, follow a fee-only payment structure, and prioritize your specific financial goals and needs.

Schedule your complimentary assessment today!