Is it Time to Break Up With Your Financial Adviser?
While hearts and flowers may be in the air at this time of year, it’s also a time when people start to reevaluate some of their relationships. Now, no one likes a break-up, but staying in a relationship that is no longer working, isn’t a good plan either. As you think about your many relationships, one to consider is the relationship you have with your financial adviser. How do you know when that relationship should change? Let’s look at some red flags.
They don’t call, they don’t write: If your adviser isn’t keeping the lines of communication open, then it’s time to move on. You should hear from your adviser at least once a year, if not more frequently. This gives you the opportunity to make sure your financial decisions are leading you to use your money in the most efficient and effective way possible. Think of it like a check up with your doctor; you need to check on the health of your financial status. Even more of a red flag is if they are not returning your calls or emails. That can be a sign of something bigger, like lack of empathy or respect for their clients. Your adviser should care enough about you to make sure you have a strong partnership when it comes to building your financial future.
They send mixed signals: When your adviser isn’t clear with you, it’s hard to know if you’re making the right financial decisions. If they can’t clearly explain things, that’s a big red flag. It could mean that they don’t understand the products they are selling you, or it could be a sign of someone who is untrustworthy. Your adviser should be an expert at guiding you on your financial journey, not confusing you in the process. Another red flag is if your adviser is making guarantees. Nothing is a sure thing, and your adviser should not be telling you otherwise.
They’re too pushy: Financial advisers shouldn’t act like sales people. They are there to guide you and your family to the financial success you’ve worked for. Your adviser should be working with what you already have, putting your money to its highest and best use each and every year. This takes priority over pushing you to buy products. If your adviser is pushing you to buy something that you’re not comfortable with, then it’s time to look elsewhere.
They have a lot of exes: Make sure you do your research and ask for references if you are unfamiliar with your adviser. Your adviser should be licensed, well educated, and should not have any citations for misconduct. If your adviser has lost a lot of their clients, that may be the biggest red flag of all. Do your research, just like you would when buying anything else.
How to move on after heartbreak: While it’s not always easy to move on, there is always a light at the end of the tunnel. Find an adviser that fits your lifestyle. They should understand your hopes, wants, and dreams, and take on the responsibility to get you there. It’s a partnership.
Find a Financial Adviser who will help make your financial planning sane, sound, and simple.