Breaking Up with Your Financial Advisor

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martinis and your money

Breaking Up with Your Financial Advisor

Today, I’m talking to my friend Joe Saul-Sehy from the Stacking Benjamins Podcast about breaking up with your financial advisor – how to do it and when you should do it. This topic came to me after a conversation with a future client who was concerned about letting her current financial advisor know she was leaving. As Neil Sedaka shares so well, breaking up is hard to do, but breaking up with your financial advisor does not have to be a hard or stressful task.

The fact is that most financial advisors, even the best ones, have been broken up with a client at some point in their careers, so it’s part of the job. Joe and I offer our advice for what’s best; and honestly I was shocked by Joe’s response. No matter what approach you take, though, never stay in an uncomfortable relationship with your financial advisor just because you’re afraid to break up with him or her.

Podcast Notes

  • It is hard to breakup with your financial advisor because your relationship with your advisor is often more intimate than any other relationship because they know everything about your financial situation.
  • If you decide to break up with your financial advisor, make sure that you are doing it for the right reasons. Poor performance is not always a good reason to break up with your advisor.
  • Some good reasons to contemplate breaking up with your advisor include:
    • Poor communication
    • Feeling frustrated with or unable to understand what the advisor is saying
    • No investment policy statement
    • No set expectations
    • Expectations are not met
  • To breakup with your financial advisor:
    • Send them an email
    • Don’t be afraid to ignore them
    • Remove your advisor from your accounts
    • Have them put you on the do not call list
    • Make it a fast and clean break; don’t keep going back for more and don’t keep accounts with multiple advisors if you don’t have to

Have you ever broken up with a financial advisor?

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Shannon is a financial planner who left a “traditional” financial services firm to start her own company, The Financial Gym, because she felt traditional financial services firms did not have the tools or resources to help people in their 20s and 30s who are starting out and trying to build assets while also managing debt. She realized that the key to long-term personal financial success is a commitment to financial fitness and making smart financial choices. Through her blog, Financially Blonde, her book, Train Your Way To Financial Fitness, her podcast, Martinis and Your Money and The Financial Gym, Shannon is committed to making financial fitness fun, easy and accessible for everyone.

7 COMMENTS

  1. No, I haven’t. But, I am glad you discussed this topic on breaking up with your financial advisor as I am planning to do so to get a better financial advisor.

  2. Doing the same with an accountant! I know they are different but I expect my accountant to be giving me advice and steering my finances for both my business and my personal life. When they aren’t doing that move on and find someone else.

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