Are You Happy With Your Financial Advisor? If Not, Here's How to Switch

If you’re looking to build wealth, get ready for retirement or anything in between, you may find it helpful to work with a financial advisor. Not only can these experts guide your investments and saving during your working years, their advice can be vital to managing the complicated questions of taxes and withdrawals after you stop working. Further, a financial advisor can help you think holistically about your goals, resources, risk profile and timeline. But not every advisor-client relationship meshes well, so sometimes you need to make a switch.

If you’re not already working with a financial advisor, consider engaging one for financial planning, investment management, retirement planning and more.

Why Clients Part Ways With Financial Advisors

According to research from Morningstar, there are six leading reasons that cause clients to part ways with their financial advisors:

Quality of financial advice and services (32%)
Quality of relationship with an advisor (21%)
Cost of services (17%)
Dissatisfaction with returns (11%)
Preference for managing their own finances (10%)
Poor quality communication (9%)

Of course there are other reasons as well, and sometimes clients cite more than one of the above-mentioned reasons for breaking up with a financial advisor.

How to End the Relationship With Your Financial Advisor, According to Facet

As is the case in any kind of transition, it’s important to think carefully about both what you would like to accomplish and how you would like to accomplish it in the context of your client-advisor relationship. If you do, in fact, decide to leave a financial advisor, financial planning firm Facet has compiled a five-fold guide for managing the breakup. Here’s a breakdown of their tips:

Put things in perspective: Leaving an advisor is just a business decision in the same way that you’d drop the stylist who cuts your hair or the gardener who mows your lawn. You’re paying for a professional service, and if you’re not satisfied, it’s time to make a change.

Notify them, on your terms: While it’s not technically required, you should politely and respectfully inform your advisor that you’re making a change. Keep it brief and professional. You can do it with a phone call, email or personal meeting. First make sure you’ve got all your account details and documents in hand.

Review the paperwork: You may have to settle any outstanding fees or charges, so check your agreement documents. If your advisor holds any of your assets in their own accounts, you’ll need to move that money to yourself or your new advisor. Be sure you don’t trigger any tax consequences, such as cashing out an IRA, which can also result in a tax penalty.

Reassess your financial situation: If you haven’t found another professional to swap over to, now is the time to reconsider your options. Examine your financial situation and goals and decide how you want to go forward. Some advisors manage your assets, while others will give you a plan that you can manage on your own. Interview several new advisors before handing over your portfolio and assets, and be sure to explore your risk tolerance with them all.

Look forward to having a better plan that meets your needs: The point of using a financial professional is that you can sleep at night. You know what your plan is, what’s happening with your money and that your plan can work in good times and in bad. If your investments dropped (as with the 2022 market swoon) you should be able to remain comfortable with your new advisor and your new plan.

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What to Look for in Your Next Advisor, Based on Why You Left

Switching advisors only helps if you know what went wrong the first time and look for something different. The reason you’re leaving should shape the questions you ask and the criteria you use to evaluate someone new.

If You Left Because of Poor Communication

Slow responses and feeling like you had to chase your advisor for updates are common complaints. Ask a prospective advisor how often they typically meet with clients and in what format, how quickly they usually respond to emails and calls, and whether you’d have a dedicated point of contact or rotate through a team. It may also help to notice how they communicate during the interview process itself, since a slow response before you’re a client may not improve after you sign on.

If You Left Because of High Fees

Before signing a new agreement, it helps to understand exactly what you’d be paying and what that would include. Ask for the full fee schedule in writing, covering the advisory fee, any fund expenses inside your portfolio and any transaction or account charges, and compare the total to what you paid before. A lower headline fee doesn’t necessarily mean better value if it comes with fewer services, so the fee only tells part of the story.

If You Left Because of Disappointing Returns

Before assuming a new advisor will deliver better performance, it may help to consider whether your original expectations were realistic. Ask what kind of returns you might reasonably expect given your risk tolerance, time horizon and current market conditions, and how they’d communicate with you during a downturn. An advisor who acknowledges that losses are a normal part of investing, rather than promising results they can’t guarantee, may be giving you a more honest picture.

If You Left Because the Advice Felt Generic

If a prior advisor leaned heavily on a standard model portfolio, ask a new candidate how they typically build plans for individual clients and for an example of a situation similar to yours. It may also help to ask whether they offer services beyond investment management, like tax planning or retirement income strategy. More specific answers may suggest a more individualized approach.

If You Left Because of a Life Change

Sometimes the issue isn’t that an advisor did anything wrong, it’s that your life moved in a direction they weren’t equipped to handle. A divorce, business sale, inheritance or move into retirement can create needs a generalist advisor may not specialize in. When interviewing candidates, it can help to lead with your specific situation and ask about their relevant experience.

Before You Commit

Whatever prompted the change, it may help to avoid rushing into the next relationship. Talking to multiple candidates and comparing how each answers the same questions about fees, services, fiduciary status and relevant experience can clarify who’s the best fit. You can also check a candidate’s background through adviserinfo.sec.gov or brokercheck.finra.org to confirm registration and review any disciplinary history. The goal isn’t just finding someone better than who you left, it’s finding an advisor whose approach and focus may actually fit where your financial life is now.

Bottom line

Woman terminates her relationship with her financial advisor.

If you are dissatisfied with your financial planner, you don’t need to suffer in silence, and cutting ties, while difficult, is often just part of managing your money more effectively as your needs evolve. It may help to reconsider what you want and don’t want in a financial advisor, how you’d prefer to work with one, and how your financial goals may have changed since you first started working together. With some preparation and careful planning, you can move on confidently if that’s what’s best for you.

That said, it helps to understand why you’re unhappy before you start looking for someone new. “If you’re not happy with your current advisor, you may need to find a new one. But before you do make sure you understand what makes you unhappy in the first place so that you know what to look for in a new one,” said Brandon Renfro, CFP®.

Brandon Renfro, CFP®, RICP, EA provided the quote used in this article. Please note that Brandon is not a participant in SmartAsset AMP, is not an employee of SmartAsset and has been compensated. The opinion voiced in the quote is for general information only and is not intended to provide specific advice or recommendations.

Tips on Getting Financial Advice

Whether you’re looking for a financial advisor for the first time or seeking a new one, the process doesn’t have to be difficult. SmartAsset’s free tool matches you with 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.
Fidelity recommends that you have 10 times your annual income saved for retirement by age 67. To find out if you’re on track, SmartAsset’s retirement calculator, This free tool will estimate how much you’ll have when the time comes to retire.