Is your financial advisor retiring? Are you unhappy with your current financial advisor? If you answered yes to either of these questions, it might be time for a change. Don’t let the burden of unknowns paralyze your decision-making!
The relationship between clients and financial advisors is built on trust, so switching advisors can be a delicate process. We’ve rounded up some tips to help you navigate this change with a smooth, streamlined transition. If you’re ready to learn how to change financial advisors, keep the following things in mind:
- Take Financial Inventory: When you change financial advisors, think of it as an opportunity to gain a fresh start with how your finances are being handled. Working with a new advisor to review your assets, accounts, and overall financial plan can help you evaluate where your finances currently are and where you’d like to take them. Thinking through questions such as “Does my current financial plan align with my long-term goals?” and “What type of advisor is the best fit for my needs?” will help you as you take the next steps in changing financial advisors.
- Patience is Key: Changing financial advisors is not an overnight process. Your new advisor must ensure that your assets are accounted for in the transition, which can take some time to process. Keep in mind that security and safeguarding measures are taken as a precaution to keep your assets protected during the transition. Different custodians and firms have different processes, but your new financial advisor should keep you informed about your unique transition. Good communication is essential for a seamless experience.
- Be Mindful of Tax Implications: If assets are transferred appropriately and with tax considerations in mind, there should be minimal to no impact on your taxes. Be sure your new advisor is aware of the types of accounts you own and can make recommendations specific to your unique circumstances.
- Consider New Technology: If it’s been several years since you first started working with your financial advisor, there’s a good chance new technology has entered the game. New wealth management technology is often more efficient and user-friendly and provides security benefits through multi-factor authentication. When evaluating a new advisor, be sure to ask how they incorporate technology into the client experience.
Once you’ve made the decision to transfer your assets, it’s time to find a new financial advisor. Working with the right wealth management team allows you to live your best, most meaningful life now and in the future. When changing financial advisors, there are many things to consider to ensure they are the best fit for your unique circumstances. That’s why we’ve compiled a list of the factors to evaluate when choosing a wealth management partner. Here are some key traits to look for when finding the right match for you:
- Credentials. Having a dedicated credentialed advisor, or team of advisors, allows you to build a foundation of trust as you navigate the financial terrain of your life. Your team should hold the highest designations in the field. Look for advisors who have earned their CFA®, CPA, and/or CFP® credentials.
- Fee Structure. Look for a fee-only firm that upholds the fiduciary standard. Independent, objective, client-first advice is critical.
- Approach. A custom approach can make a big difference for your future. Hire a team that creates a road map unique to your individual circumstances. You should also choose an advisor who can meet with you on your terms — when and how you prefer to connect.
- Preparedness. A strong wealth management partner will anticipate your financial needs and adapt the plan as needed.
We hope these tips on changing financial advisors help you feel prepared to make the transition. If you’re ready to begin the process, Foster & Motley provides a comprehensive, cohesive approach to wealth management and would love to discuss your financial needs and goals today.
Contact us today to schedule a consultation!