Compounding Pennies

  • Home
  • Authors
    • Blogs I Read
  • Recommended Resources
  • Archives
  • Contact Me
    • Advertise
    • Guest Posts
    • Privacy Policy
    • Facebook
    • Google+
    • Pinterest
    • RSS
    • Twitter
You are here: Home / Investing / 7 Reasons To Fire Your Financial Advisor

7 Reasons To Fire Your Financial Advisor

August 17, 2012 by Jon Dulin

THIS POST MAY CONTAIN AFFILIATE LINKS. PLEASE SEE MY DISCLOSURES FOR MORE INFORMATION.

  • Tweet
  • Share
  • Pin It
  • Share
  • Share
  • Share

fire your financial advisorYour intent was to hire a financial professional to help you meet your life goals, whether they are saving for retirement or your child’s college education or for buying a vacation home. Whatever the case, the plan was for this person to assist you in meeting your goals. Unfortunately, there are some financial advisors who are looking out for their own well-being more than yours. If you have a financial advisor, I suggest you read the below list of seven examples of your advisor not putting you first. If yours is committing any of these “crimes”, you may want to begin looking at other advisors for help.

Reasons To Fire Your Financial Advisor

Focus More On Performance Than Your Goals

If your advisor is only focused on performance as opposed to your short and long-term goals, you may want to look for another advisor. While everyone wants investments that perform well, they need to fit with your time frames and tolerance for risk.

Does Not Look At Your Entire Situation

It’s easy for an advisor to help you invest for retirement, but he or she needs to understand your goals. Maybe you are trying to save for retirement and start a family. If this is the case, it changes the advisor’s recommendations for you. Only by looking at your entire picture can one build an investment strategy that will help you to succeed.

Not Reviewed Your Risk Tolerance

This should be a no brainer. If your advisor isn’t taking into account your tolerance for risk, you need to find someone else. Everyone has different tolerances when it comes to risk and an advisor should have done the work to determine yours. But a good advisor will re-assess your risk tolerance every few years to make sure that nothing has changed in our lives that would make us want to take on more or less risk.

Does Not Follow Or Have An IPS

An Investment Policy Statement, or IPS, is basically a guideline as to how your advisor is going to invest your money. Think of it as your game plan. By having this document, you can rest assured that both of you are on the same page. Over time, things will change, such as your tolerance for risk, and this document will need to be updated.

Seems Like A Salesman

If your advisor is only promoting investments that he gets paid a commission on, you will want to look elsewhere. Remember, he is supposed to be looking out for your best interest, not his. If you do not know how your advisor gets paid, it’s time to ask. It should be clearly written down as to what commissions, if any, he gets paid for putting you into certain investments.

Doesn’t Pay Attention To You

Make sure that you feel wanted by the advisor you are dealing with. Many times the relationship will start off great and then slowly your advisor will pay less and less attention to you. While having a personal relationship with every client is difficult to do if the advisor has a large book of business, they should still make the effort to meet with you and review your goals and plan on a regular basis.

Doesn’t Explain How They Are Paid

As an addition to the point above, if your advisor does not or refuses to explain to you how he or she is paid, you need to find another advisor. Any credible advisor will have their fee structure written on paper for you. It may not go into the level of detail you would like, but it will be written down and given to you. If you need more information, just ask. Again, any credible advisor will answer your questions.

Related Posts You May Be Interested In

Making Sure Your Business Runs Smoothly With The Right Accounting Software
Two Easy New Year’s Resolutions You Can Easily Do
6 Ways To Stretch Your Retirement Income
3 Ways Financial Consulting Will Help Your Business Grow
Invest in Gold, Then Focus More On Dividend Stocks
Knowing What To Include In A Financial Plan

Jon Dulin

Hi, my name is Jon and I run Compounding Pennies. I’ve been interested in personal finance since high school and love writing and talking about it. You can learn more about me in the Authors section of this site.

  • Tweet
  • Share
  • Pin It
  • Share
  • Share
  • Share

Take Control Of Your Finances

Get your FREE cheat sheet to transform your finances in 30 days.
No spam zone. You'll only get an email from us when we publish a new post.

Most Popular Posts

  • Cheat Sheet To Become Independently Wealthy
  • Complete Guide Investing For Beginners
  • 29 Tips To Throw Wedding On A Budget
  • 15 Easy Ways To Make Money Online
  • 9 Hacks To Save Money On Your Cable Bill
  • 15 Secrets To Grow Your Wealth
  • How To Make Money Illegally
  • 51 Easy Ways For Kids To Make Money
  • The 50/30/20 Budget Explained
  • How To Make Money With Surveys
  • Frugal Ways To Melt Ice
  • Active vs Passive Investing
  • Increasing Assets And Decreasing Liabilities

Reviews

  • Personal Capital
  • Betterment Will Make You A Better Investor
  • Digit: The Easiest Way To Save Money
DHgate allows small business make money online

Filed Under: Investing, Retirement Tagged With: Business, Financial adviser, Financial services, Investment, Investment Policy Statement, Retirement

About Jon Dulin

Hi, my name is Jon and I run Compounding Pennies. I've been interested in personal finance since high school and love writing and talking about it. You can learn more about me in the Authors section of this site.

Visit the Top Finance Blogs
Thanks again for visiting Compounding Pennies. My goal for this site is simple: to help you become a master of your financial future. You do this by learning to overcome your debt, making smarter spending choices and start investing for your future. When you succeed, I succeed. By teaching you about personal finance, you can take the steps needed to secure your financial future. As always, if you have any questions or want help with any personal finance issue, please contact me. I will do my best to help you out and answer any of your questions.

If you find the information I provide valuable, please share it through whatever social media platforms you can. I fully believe in paying it forward and hope that as you learn, you can teach others too.

© 2019 Compounding Pennies – All rights reserved

About l Contact Me l Privacy Policy



The articles on this blog are for entertainment purposes and should not be taken as financial advice. Please contact a financial professional for specific advice regarding your situation. Any references to interest rates, giveaways, deals, products, and websites are subject to change without notice.

I try my best to keep the information current, but things are always changing so it may be different now than when it was first published. Also, all the pages on CompoundingPennies.com help me pay the bills by using affiliate relationships with Amazon, Google, and others. You can find out more about these relationships in the About Section. Also, be certain to read the Privacy Policy.

  • Facebook
  • Twitter
  • Pinterest
  • LinkedIn
  • Mix
  • Google+