How to Break Up with Your (Current) Financial Advisor
Feeling stuck with a mediocre financial advisor? Learn how to identify red flags, break up gracefully, and find an advisor who truly values your financial goals.
Breaking up is hard to do – even with your financial advisor. We get it. It's awkward, and who wants to deal with that? But here's the thing, if your advisor only cares about clients with a million bucks or more (most do), chances are you’re not getting the attention you deserve.
If you’re a high-earner with low(ish) net worth, you’ve got nothing but upside, and you deserve someone who sees that. We'll walk you through a smooth breakup so you can find an advisor who understands what you need most at this life stage and who is truly invested in your financial future.
Signs your financial advisor may not be right for you
They are not a fiduciary
Shockingly, many traditional financial advisors operate under the Suitability Standard. This means they aren't legally required to put your interests first, unlike a fiduciary who is bound to act in your best interest.
Their advice is laden with generational trauma
Your advisor may be stuck in outdated financial paradigms, pushing strategies that worked for their parents' generation but don't make sense in today's world.
They don’t give you the time of day
You feel like just another number on their client list, struggling to get a meeting or even an email response. And worse, you feel like you’re bothering them when you reach out.
When you do hear from them, it’s condescending
What’s redder than a red flag? If they talk down to you, or make you feel inadequate or uninformed about your own finances, your breakup is long overdue.
They don’t understand your life stage
Whether it's student loans, a down payment on a house, or starting a family, your advisor isn't providing relevant advice tailored to your current life challenges.
They don’t lead with a plan
Without a financial plan that defines your objectives and goals, how could they possibly create an investment strategy that allows you to maximize your lifestyle today while remaining on track for retirement? That plan should also include things like analyzing your cash flow (aka budgeting), tax planning, and retirement planning. You know, besides the obligatory “max your employer match for free money” (yeah we’re on that, buddy).
What Most Financial Advisors Don’t Want You To Know
It’s Business, Man.
Don't feel guilty about prioritizing your financial needs. Advisors are used to clients leaving, so don't overthink it. It's a business decision, not a personal rejection.
While you're not required to, letting your advisor know you're leaving is a classy move. A quick call or email does the trick. Your new advisor will handle the account transfer, so just keep it simple, professional, and as always, kind.
Use this email template to break up with your financial advisor
“Hi <Advisor’s Name>,
I am writing to you for two reasons: first, to thank you for your advice and guidance over the years and second, to address the next steps in my financial journey. At this time, I’ve decided to move in a different direction and will be moving my account(s) to another institution that I believe is a better fit for me going forward. As a courtesy, I wanted to reach out and notify you as you will be receiving the transfer requests shortly.
Thank you again,
<Your name>”
The Bottom Line
The transfer out process
Once you've told your advisor you're moving on, let your new advisor or firm take over. They'll handle the account transfer process which usually takes about 7-10 business days (fyi: the industry term for an account transfer is ACAT, so you’ll likely see that term in the paperwork process). From there, it's smooth sailing with your new financial partner. Remember, it's your money and you call the shots. Don't stay in a bad financial relationship just to avoid an awkward breakup.
Good luck. It’ll be like ripping off a band-aid (less painful than you think).
Key Takeaways
If your financial advisor doesn't prioritize your goals, act as a fiduciary, or provide personalized service, it might be time to consider a change.
Breaking up with your advisor doesn't have to be complicated: communicate clearly and let your new advisor handle the transition.
Remember, it's your money and your future - don't hesitate to find an advisor who truly understands and values your financial aspirations.
The F. Word
Ready for some real talk on how to master your money? Pull up a chair and pour yourself a glass.
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