Often, you are required to provide the advisor with a signed letter formally terminating the relationship (more on that soon). Fees. Often, a termination fee or other fees are involved in terminating your relationship with the advisor and pulling your money out.
When you break the news to your financial adviser, keep it brief and professional. Thank your adviser for his or her help in the past, and explain that things have changed and you're moving on. If you want to share the specific reasons that explain your move, go ahead and do it. But don't feel obligated to explain.
Leave a comprehensive note in their file stating the reasons why you are terminating them. Mail and email a professional letter telling them you are terminating the relationship and give them 30 days to move the account and them call the custodian to remove yourself from the account.
How Do I Fire My Financial Advisor? If you hate difficult conversations, just slip out the back, Jack. Find a new advisor, make a copy of your online transaction records, and ask your new advisor to transfer over your records and assets.
Thank the advisor for their years of service. Let them know you are moving your accounts elsewhere. Ask what fees may be charged for moving your investments. While you do not have to explain why you are severing ties, doing so as a "professional courtesy" may help the advisor and the industry improve, Lee said.
Regardless, if you're not feeling fulfilled in your current advisor relationship, remember: You can always leave.
Expect a Few Fees If You Fire Your Financial Advisor
You'll likely be paying some money to transfer your account away, perhaps a few hundred dollars per account. You may also have to pay commissions to liquidate some of your stocks and mutual funds in retirement accounts.
Another option is to ask for a reassignment to a different advisor within the same firm, especially if your current advisor's expertise isn't the right fit for your financial goals. However, if these changes don't resolve the situation, leaving your financial advisor may be the best course of action.
"If judging performance only, clients need to give an advisor three to five years minimum, and realistically, five-plus is probably better," said Ryan Fuchs, a certified financial planner with Ifrah Financial Services. "It may take several years before you can truly see how an investment strategy will work.
The best way to tell your advisor you are switching advisors is to make an appointment and speak to them in person. After years of working together on your academic journey, it's most fitting to give them the consideration of face-to-face communication.
You can write a personal note to them, email them, or call them—whatever you feel most comfortable doing. No matter what method you choose, remember to specify an end date. Do your best to leave your emotions at the door. This is a business decision, and no matter how nice your advisor is, you are leaving for a reason.
Always cancel in writing. You can use the cancellation form or send a letter. Keep a copy of your cancellation notice or letter. Send your cancellation notice by certified mail, return receipt.
By hiring a single investment advisor, you receive more streamlined advice as only one person manages all your money matters removing any chance of conflicting advice or any disagreement. This also allows the chosen individual to clear up your doubts and offer guidance to you on how to best attain your financial goals.
It's a business decision, not a personal rejection. While you're not required to, letting your advisor know you're leaving is a classy move. A quick call or email does the trick. Your new advisor will handle the account transfer, so just keep it simple, professional, and as always, kind.
Yes, you can switch financial advisers at any time. You have the right to change if you're not satisfied with the service you're receiving. However, it's important to check your contract with your existing adviser, as there may be termination fees you'll need to pay.
A quarter of surveyed clients considered switching to a new advisor, with an additional 21.8% actually making the jump to a new advisor or a robo-advisor. A little over half of surveyed clients (52.9%) did not switch, nor did they consider switching.
Contact your advisor, thank them for their service, and ask for transfer-out paperwork- I understand you may not want to talk to the advisor you are leaving. Breaking-up isn't exactly fun. In my opinion, letting your advisor know you are leaving them is the right thing to do. A call will do.
While an in-person meeting can provide closure, it might not be necessary. An email or phone call can suffice, especially if the relationship has deteriorated. Choose whatever method you're most comfortable with. Whether the conversation takes place over email or in-person, be polite but get to the point.
If you've been working with somebody who only provides advice, the process is generally quite easy. Notify your advisor that you'd like to end the engagement, and begin working with your new advisor.
If your financial advisor is not meeting your expectations, it might be time for a new one. Breaking up can be hard to do. That's particularly true for your financial advisor. After all, they know not only everything about your finances but also your dreams and goals.
File a complaint with their firm
Be sure to include all relevant details and evidence. If you're not satisfied with the firm's response — or if your advisor isn't associated with a specific financial institution — the next step is to file a complaint with the appropriate regulator.