Sat. Oct 1st, 2022
How to Know When to Change Your Financial Advisor

A good financial advisor serves as a fiduciary, assisting you with financial chores such as estate planning and investing. If your current financial advisor is not living up to your expectations, it may be time to find a new one.

Breaking up can be difficult. This is especially true in the case of your financial adviser. After all, they are privy to not only your finances but also your hopes and goals. While it is never pleasant to fire a financial advisor, it is sometimes essential. Here are some reasons to fire your financial advisor, ranging from being unreachable to failing to keep your goals in mind.

Related: Should You Handle Your Own Investments?

1. When Your Financial Adviser Fail to Listen to You

To reach your financial goals, your financial advisor must understand you, your risk tolerance, investing horizon, and aggressive or conservative inclination. They won’t be able to learn anything unless they sit down and talk to you and, more importantly, listen to you.

If your financial advisor spends your meetings telling you what to do without listening to your objectives, desires, and worries, they are not looking out for your best interests. If your financial advisor is doing this more frequently, it may be time to find a new one.

How to Know When to Change Your Financial Advisor

2. Poor Communication

Communication is the foundation of any relationship. Without it, it’s easy for things to get mixed up and for anger to boil over, culminating in distrust. Poor communication can easily sour a relationship, especially when money is involved, which is why the best financial advisors will set expectations for how frequently and when they will check in with you.

If your adviser suddenly stops returning your calls or emails or takes too long to respond, it could be a clue that you need to find a new counsel. After all, people hire financial advisors for guidance, and if you’re not getting it, why are you paying the person in the first place?

3. Encouraging Expensive Investments 

Overpaying for fees and charges is one of the easiest ways to reduce your returns. While it is the financial advisor’s responsibility to match your investments to your goals and expectations, they should also monitor your costs. You don’t want to end up in a scenario where your adviser steers you into investments with high commissions, nor do you want to pay too much for a fund when a comparable investment is available for less.

Examining your monthly or quarterly statement is a fantastic technique to determine the number of your fees and expenses. When you see a large number, it’s time to contact your advisor. If you can’t fix the problem or there’s no solid rationale for the excessive expenses, it’s an indication you should fire your financial advisor.

4. Failure to Provide Adequate Information

Many people find investing to be hard and confusing, which is why there are so many financial counselors available. Not everyone will be able to adequately explain where your money will be invested.

Financial advisors who toss jargon at you but can’t explain what’s going on in layman’s terms should raise a warning flag with you. The financial advisor either refuses or is unable to provide you with the essential information about your investments. In either case, it’s not beneficial for you or your financial situation.

Your financial advisor should never guarantee large returns on investments or put you under pressure to make investments that you cannot afford. Ensure that your financial advisor is a fiduciary.

How to Know When to Change Your Financial Advisor

FAQs

What Is the Role of a Financial Advisor?

Depending on their specialty, financial advisors perform everything from managing stock portfolios to counseling on taxes, estate planning, and other aspects of personal finance.

Where Do You Look for a Financial Advisor?

There are numerous methods for locating one. You can begin your search online to check for financial advisor bear you, for example – searching online for “financial advisor in Sydney,” or seek referrals from friends, family, and coworkers.

What Does a Financial Advisor Charge?

The cost of a financial advisor is determined by several factors, including the type of advisor and the assets you need assistance managing. Financial advisors are classified into three types: fee-based, fee-only, and commission-based. Some financial advisors charge a percentage of the assets under their management. For example, if an advisor charges 3% of your own assets worth $50,000, you would spend $1500 every year.

Some financial consultants charge up to $400 per hour, depending on the advisor and the task at hand. getting financial advice is not always cheap, but they are not only for the wealthy either. The service can be used by anyone regardless of your income or status level. And you can always find one that suits your budget. The overall aim of a financial advisor is to assist you in saving or growing your money.

How Do You Get a Job as a Financial Advisor?

Most financial advisors employed by brokerage firms must have a bachelor’s degree. Furthermore, financial advisors who wish to advance in their careers must study for and pass their licensing exams in order to earn the required license, among other to consider. Experience in a specialised area of finance, such as investing, is also beneficial.

Conclusion

Financial advisors perform an important and required role in guiding ordinary people into appropriate investments. However, these experts are only as excellent as the service they deliver to their clientele.

If your financial advisor is not paying attention to you, is not listening to you, or is confusing you, it may be time to part ways and find a new advisor who is prepared to go above and beyond to keep you as a client.

If you aren’t convinced about the quality of the services you’re paying for, maybe it is time to part ways with your financial advisor, your investment doesn’t have to end with that relationship. Reach out to Omura to get the best financial advisor. We’ll provide you with an experienced and successful Australian financial advisor who’ll right the wrong done, putting your interest first!