How often can I change advisors who manage my assets? I just started in May and I feel uneasy with my advisor.
– Maricor
I’m sorry to hear that you’re not feeling good about your current advisor. The good news is that while there are some practical limitations to consider, there really aren’t any restrictions on how often you can change financial advisors. Here’s how to evaluate your relationship with your current advisor and what to consider when making a switch to a different one. (And if you need help finding a new advisor, this free tool can help you connect with up to three advisors who serve your area.)
Assessing Your Relationship With Your Current Advisor
It sounds like you’ve already made up your mind that you aren’t comfortable working with your current advisor, but it might be helpful to think about the specific reasons why. Understanding why you aren’t comfortable with your advisor could give you a chance to fix it. If not, it will help guide you as you explore other options.
If your uneasiness has more to do with the approach your current advisor is taking, it may be worth talking to them about it. This could give you a chance to course-correct and possibly salvage the relationship. They may be doing something a certain way because they have misunderstood a previous conversation or some other miscommunication. On the other hand, you may identify that you and the advisor simply have fundamentally different viewpoints on how things should go. There’s nothing wrong with that, but this discrepancy may be a good reason to end the relationship.
If it has more to do with their personality than their approach, there may be little you can do about it.. However, knowing what it is that bothers you about them can help you steer clear of the same traits in the next advisor.
Either way, reflecting on exactly what it is about that advisor that has you questioning will be helpful. (And if you decide you want to find a new advisor, SmartAsset can help you match with one.)
What to Consider When Making a Switch
The major practical limitation of switching advisors is that if you do it too often it will be difficult to follow any real plan. Each advisor will need some time to familiarize themselves with you and your situation before putting together their suggestions. This may not be much of a concern as long as you aren’t switching frequently. I’m only mentioning this because you asked how often you could switch.
There may be penalties associated with pulling your money depending on the types of investments you have in your portfolio. However, this generally doesn’t apply to common investments like stocks, mutual funds and exchange-traded funds (ETFs). Also, keep in mind that you don’t necessarily have to sell your investments to change advisors. You can transfer many investments “in-kind” and let your new advisor help you figure out the next steps.
Other than that, moving to a new advisor is mostly just opening new accounts and transferring your money. There are some logistical considerations, but usually they’re not too difficult. Your new advisor can take care of most of the process. (And if you need help finding a new advisor, give our free matching tool a try.)
Bottom Line
It’s important to work with an advisor that you are comfortable with. That applies on both a personal level and in regard to their approach to managing your money. If you don’t feel like you have that, you should at least have a conversation with your current advisor about it. If you think the relationship is past the point of fixing or simply know it’s time to move on, finding a new advisor may be a smart move. Think about the specific reasons for wanting to move in the first place. Doing so can help you avoid the same situation as you choose a new advisor.
Tips for Finding a Financial Advisor
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A lot goes into finding a financial advisor whom you’re comfortable with. You’ll obviously need to assess whether you trust the advisor and enjoy speaking with them. However, you should also work to determine whether their suite of services and expertise align with your needs. We’ve compiled a comprehensive guide on how to find and choose a financial advisor that covers the ins and outs of this important process.
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Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Brandon Renfro, CFP®, is a SmartAsset financial planning columnist and answers reader questions on personal finance and tax topics. Got a question you’d like answered? Email AskAnAdvisor@smartasset.com and your question may be answered in a future column.
Please note that Brandon is not an employee of SmartAsset and is not a participant in SmartAsset AMP. He has been compensated for this article. Some reader-submitted questions are edited for clarity or brevity.
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