Heritage Financial Planning

Outgrowing Your Financial Advisor: Know When It's Time for a Change

March 30, 2023

As your financial situation evolves and your wealth grows, it's vital to ensure your financial advisor keeps up with your changing needs and goals. While your current advisor may have been a great fit when you first started working together, they may not be the best choice as your financial needs become more complex. Staying with an advisor who is no longer a good fit can hinder your financial progress and ultimately cost you money.

So, how do you know when to consider finding a new financial advisor? In this article, we will explore some signs to look out for.

Lack of Communication

A good financial advisor should be responsive and communicative, regularly updating and answering your questions promptly. If your current advisor is difficult to reach or fails to provide the level of communication you require, this may be a red flag. As a client, you deserve full and undivided attention.

Inadequate Investment Strategies

As your wealth grows, your investment needs become more complex. Your financial advisor should be equipped to create a tailored investment strategy that aligns with your risk tolerance and goals. If you're feeling as though your current advisor's investment strategies are no longer  meeting your needs as your wealth accumulates, this could be a sign that something needs to change. 

Unsatisfactory Performance

Ultimately, the goal of a financial advisor is to help you grow your wealth. If your portfolio is underperforming or consistently failing to meet your goals, it may be time to reassess your advisor's abilities. 

Limited Services

When you first started working with your financial advisor, they may have provided all the services you needed at the time. However, as your financial needs grow and evolve, you may require a broader range of financial services beyond investment management. For example, you may need assistance with retirement, tax, estate, or insurance planning.

It is crucial to have a financial advisor who can provide a comprehensive approach to your financial planning needs. This will ensure all aspects of your financial situation are considered and you have a well-rounded financial plan. If your current advisor is limited in their services or cannot provide the support you need, it could be time to seek out a professional who has more to offer. 

No Focus on Long-Term Planning

A good financial advisor should be focused on helping you achieve your long-term financial goals, not just managing your investments in the short term. Long-term planning involves looking at your entire financial picture, including your income, expenses, assets, and liabilities, to develop a plan to help you achieve your financial objectives over time.

Having strong professional support when it comes to planning for your future is a must. A good financial advisor should define your financial goals, develop a plan to achieve them, and regularly review and adjust that plan as necessary.

Lack of Regular Review Meetings

Regular review meetings are essential for keeping track of your progress and ensuring your financial plan remains aligned with your goals. These meetings provide an opportunity to discuss any changes in your financial situation, review your investment performance, and make adjustments to your financial plan as necessary.

If your current advisor fails to schedule regular review meetings, it may be time to consider finding someone more dedicated. A good financial advisor should be proactive in their communication and regularly reach out and discuss any changes in your financial situation. Additionally, they should answer any questions, and ensure your financial plan remains aligned with your goals.

Unclear or Conflicting Advice

Unclear or conflicting advice from a financial advisor can lead to confusion, which is the opposite of what you want when managing your finances. You rely on your financial advisor to provide clear, concise, and actionable advice to help you achieve your financial goals.

Suppose your current financial advisor is providing you with unclear or conflicting information. For example, they may be using jargon or financial terminology you don't understand, or may not be taking the time to explain their recommendations in a way that makes sense to you. In that case, it could be a sign they don't fully understand you and your financial situation or are not communicating effectively.

In some cases, conflicting advice may result from your advisor not understanding your goals and risk tolerance. They may recommend investments not aligned with your objectives or risk profile, leading to uncertainty.

Wrapping it Up

If you've noticed any of these signs, it may be time to consider finding a new financial advisor. When searching for a new advisor, look for experience in wealth management, a strong performance track record, and responsiveness. It's also essential to find an advisor who understands your unique financial situation and can provide tailored advice and services that meet your needs.

In conclusion, outgrowing your financial advisor is a natural part of the wealth management process. As your financial situation changes and evolves, it's essential to regularly assess whether your current advisor is still the right fit for your needs. 

By recognizing it's time for a change and finding a new advisor better equipped to meet your current financial needs, you can continue to achieve your financial goals and build long-term wealth. If you'd like to see whether or not Heritage Financial Planning is a fit for you, contact our team today. 

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Written By: Heritage Financial Planning Team

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