Zach Palmer Quoted in MarketWatch - When Should You Change Financial Advisors?

Is your financial advisor recommending commission products? Is that a red flag? A recent MarketWatch column shared the story of a retiree whose advisor claims they pay no fees. The reality seems to be something much different. 

How is Your Financial Advisor Compensated?  

There’s no such thing as a free lunch. If an advisor is recommending any type of insurance product ask them how they are making money on it. If an advisor receives commissions they are NOT working in your best interest. Be sure to read the fine print. If your advisor receives commission compensation they are not obligated to act as a fiduciary and put your interests first. 

Read the full MarketWatch article: 'Is it a bad idea?’ I’m 69 and retired. I’ve had the same insurance agent for 15 years, who sold me annuities earning 3%. I’m considering getting more investment advice from him.

When Should You Consider Changing Your Financial Advisor?

As your financial situation evolves, it's essential to ensure that your financial advisor is keeping pace with your changing needs. While a long-term relationship with a trusted advisor can be beneficial, there are times when it may be necessary to consider making a change. Here are some key signs that it might be time to find a new financial advisor:

• Lack of Communication and Responsiveness - If your advisor is unresponsive, fails to keep you informed, or doesn't provide the level of service you expect, it may be time to look for a new partner who can better address your needs. We recommend establishing an agreed meeting cadence at the onset of your relationship.

• Consistent Underperformance - If your investments have consistently underperformed relevant benchmarks or your own expectations over an extended period, and your advisor can't provide a clear explanation, it may be time for a change.

• Concerns about Fees and Costs - Transparency about cost and fees are essential when it comes to managing your finances. If you feel your advisor's fees are too high or not adequately justified, it's worth considering alternatives.

• This Morningstar article also has ideas about when you should change advisors.

Remember, your financial advisor should be a trusted partner who helps you navigate the complexities of wealth management and achieve your long-term goals. Don't hesitate to make a change if your current advisor is no longer the right fit.