A good financial advisor is someone that will help effectively manage your finances and will also help you deal with your crucial financial tasks like investing and estate planning. If you feel that your advisor is not working up to your expectations, it might be the right time to hire a new one.
Hiring and firing such individuals is a very crucial task. One wrong decision can change everything about your financial life. In this article, we have shared some signs that will help you decide whether or not you need a new financial advisor.
1. They Disregard You
Communication is the key in any relationship. If there is a communication gap between you two, it will give rise to the possibility of miscommunication which could pave the way for anger.
Poor communication can make things even worse when money is involved. Thus, it would help if you had good communication relations with your financial advisor. You should convey what you want and don’t want properly without any hesitation.
If they don’t pay heed to what you say, you should immediately start looking for a better financial advisor. It would help if you lay down rules as to how often you both will check in with each other. For more information on this, check out mdf-law.com.
If they stop replying to your emails or calls, or if they take too long to respond, then you should start thinking about hiring a new advisor for yourself.
2. They Provide Insufficient Information
Investing is a tricky business, and a lot of times, common people find it difficult to fit into the world of investing. This is the reason why people hire such individuals to carry out the job for them. However, you should know that not all these professionals are good at what they do. Many financial advisors cannot explain properly or provide insufficient information.
If this is the problem you are facing, then this is a sign and start looking for a new one. This could mean two things: either your professional does not want to provide full information or cannot explain things properly.
3. When Hiring Them Becomes Too Expensive
Why have you hired this professional? To advise you on those investments that match your expectations and goals. If hiring a financial advisor costs you more than what you are receiving from them, then it is time to get a better financial advisor.
You don’t want to land yourself in a situation where you end up paying a hefty commission to this professional. Now you must be wondering how you will calculate all of this? It is very simple!
A great way to know if you are paying too much to your financial advisor is to look at your quarterly or monthly statement. If you see a very high amount, immediately connect with your advisor and ask about it. If you cannot rectify the situation, then take it as a sign to hire a new financial advisor.
4. When they recommend investments that don’t match with your profile
If you feel that your professional often pitches in investments that don’t match your profile, it is time to cut off your ties with them. If this happens once in a blue moon, it is perfectly okay. But if you find that your professional frequently recommends investments that don’t suit your risk tolerance, then you should start thinking of hiring a new one.
Do not follow your professional blindly; instead, do your research whenever your advisor pitches in. Let him know what your expectations are. You should understand that these professionals often get commissions while recommending products; therefore, you shouldn’t follow them blindly.
5. When you don’t receive monthly or quarterly reports
These individuals should provide monthly, quarterly and annual reports to their clients. These timely records help the clients to keep track of their money. These reports are generally very detailed and help assess the financial gains and losses.
A good advisor makes sure that their clients get monthly, quarterly, and annual financial reports on time and without any delay. However, if your professional does not provide even a quarterly financial report, it is time to hire a better advisor.
6. When they change your portfolio without any prior information
If your advisor has added a new investment or product without talking to you first, then take it as a sign to hire a new advisor. These advisors often change their clients’ portfolios to maximize growth or minimize the impact of market volatility, which is perfectly fine. But the problem arises when they do so without discussing it with you. If you have faced a similar situation before, you should start looking for a new advisor.
7. When they fail to meet your financial goals
Everyone has a goal they seek to achieve, which they discuss with their financial advisors. Upon listening to the goals and requirements, a good financial advisor should set some strategies for short-term and long-term goals to achieve those goals.
You, on your part, should make sure that the short-term goals and strategies are followed at the right time. If you feel that your financial advisor is not on track to fulfilling your goals, then it is time you think about hiring a new advisor.
If your advisor misses the deadline occasionally, it should be understood; however, it should not become a norm. If you feel that you are not even close to your financial goals, then take it and hire a new financial advisor.
A financial advisor will help you make the best decisions about handling your money. Hiring the right financial advisor can make your life tension-free and financially rewarding. However, the wrong person can pose a great threat to your money and your financial portfolio. Thus, before you hire a financial advisor, make sure to research thoroughly. A bit of question and regular checks up with the adviser will secure your financial future.