Relationships with financial advisors are often long-term.  However, you may decide it is time for a change, and begin the process of selecting a new financial advisor in St. Louis. Changes in financial advising can happen for all sorts of reasons: dissatisfaction with performance, service shortcomings, life changes, or style and personality.

Here are some potential signs that a switch to a new financial advisor might be a good move. 

1. You don’t have a comfort level with the advisor 

One of the key ingredients of a good relationship between you and your financial advisor is simple: your comfort level. You should feel comfortable asking them questions or wanting explanations of everything from concepts to financial decisions. 

If you find yourself feeling talked down to or don’t feel comfortable with the explanations you’re receiving, or the decisions being made, it’s time to seek a new financial advisor.

Looking for a new financial advisor in St Louis? Click here and read this guide!

2. They’re too busy

Getting in touch with your financial advisor should be reasonably simple and reasonably quick. Any phone calls or e-mails should be responded to in a day or so. If you want to talk, you should not feel rushed or feel as if your financial advisor is too busy to take the time to communicate with you. 

If your financial advisor in St. Louis, MO is not responsive within a reasonable period of time or you feel rushed through your concerns or questions, it may be time to find someone who will respond promptly and work with you without rushing you.

3. They don’t stay in touch

Financial planners shouldn’t touch base only when you initiate communication.  Most St. Louis wealth managers keep in touch regularly with their clients. You may, for example, receive opportunities for meeting with your advisors 2-4 times per year where you update them on any changes in goals or life events that affect your finances (such as marriages, births, or divorces) and they discuss risk and planning projects you are working on together.   Quarterly market updates may also be provided to keep you abreast of world events that impact your portfolio. 

If an extended period of time goes by without hearing a peep from your financial advisor, it may be time to look for someone more attentive.

4. They don’t share your values

The best relationships often occur between people with shared values. If you have firmly held Judeo-Christian beliefs, for example, advisors who also share those values can be the best choice for substantive input into your financial affairs. 

If your current financial advisor recommends specific strategies that may not conform to your beliefs or do not seem attentive to your goals of charitable giving or establishing a legacy for your family, it may be time for a change.

5. You’re unhappy or unclear with your portfolio’s performance

The value of portfolio investments can fluctuate, depending on the risk-reward profile used. But over time, you should feel comfortable with the performance of your investments. If you see headlines indicating that the stock market is having a banner year, then you would typically expect that the stock component of your investments should also be going up. 

Unfortunately, many advisors display performance in a confusing or unclear way or don’t even provide it at all.  Organizing expectations and results in a clear and simple manner helps build your confidence and enhances your ability to make good risk-based decisions.

So what happens if bonds or alternatives seem to be doing well but yours are not or you don’t even have any? It might be a good idea to talk to your wealth advisor.  If they don’t have a reasonable explanation, or you’re just not happy, that’s a big reason to switch advisors to a firm that has had more reasonable returns given the economic environment. 

6. Their advice is always the same, despite changes in your life or changes in the markets

Another major red flag is unvarying advice over long periods of time. This is especially true when major changes affecting your finances happen. What if your financial advisor recommends life insurance, even as your children become adults and leave the nest? (Once they leave, you may no longer need life insurance.) What if you are approaching retirement but your portfolio is invested in aggressive growth stocks? (Many wealth managers advise a more conservative strategy once people reach the pre-retirement and retirement stages.)

One of the chief reasons for a periodic review is to ensure that a financial advisor’s strategies and recommendations reflect your current goals and needs. If they don’t change, they may not fully reflect your current situation, and that’s a big reason to switch.

7. You’re paying too much in fees 

You should feel that the fees you’re being charged are both reasonable and transparent (easy to understand). Fees for financial advising can vary widely, but you should understand them and not feel overcharged.

Many advisors use terms to describe how they charge such as fee-based or fee-only.  But these terms don’t typically improve clarity because you still don’t know if you are being charged a set dollar amount or percentage of assets.  Will you be charged for your financial plan, and then there are insurance-related commissions on life and long-term care insurance and annuities and … yes it can all be very confusing.  

So what it all comes down to is your advisor explaining how they charge and if you don’t understand the fees you’re paying, then it’s certainly appropriate to ask… it’s your money.  A major concern for clients is not understanding hidden commissions or fees, and that’s a reason to consider a new financial planner.

8. They only contact you to buy or sell

A comprehensive financial planner offers many services to their clients. These include cash management of expenses and income, investment advice, retirement planning, tax planning, risk management (insurance), estate planning coordination of wills, trusts and powers of attorneys, and more. 

Some of these services may indeed include the buying or selling of securities and other products, such as insurance. However, a financial planner should provide many services that do not require buying and selling of anything. If you only receive communications when they are advising a trade, it could be a sign that the advisor is not paying sufficient attention to your financial goals and needs.

How To Make a Change

Don’t let unfamiliarity with how to change financial advisors stop you from making a needed change. Financial planners work for you, just as a lawyer, doctor or car mechanic does. If you’re not satisfied for any reason, changing is your right. 

In most cases, you simply engage the new advisor and notify the old one. Typically the bulk of the transition can be handled electronically behind the scenes.   

Let a St. Louis Financial Advisor Help

Financial advising is all about reaching your most cherished goals and living the life you want to live. If your financial advisor is not doing that, or if any of the obstacles above prevent you from working well with a financial advisor, Trinity Wealth Advisors can help. We are CERTIFIED FINANCIAL PLANNER™ Professionals located in St. Louis, Missouri who work as a team, have years of experience under our belt, and have strong Judeo-Christian values. Contact us today.