August 11, 2023

Changing your Financial Advisor

Discover the signs that evidences a need for a new financial advisor and understand how to evaluate potential candidates. This guide provides a roadmap for a smooth transition and emphasizes the importance of continually aligning your financial plan with your goals. Get the most out of this article and empower yourself to make informed decisions about your financial future.

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Key Signs It's Time to Change Your Financial Advisor and How to Do It


There could be several reasons why someone might consider changing their financial advisor:

  1. Poor Communication: If your advisor is not informing you about your investments or is unavailable when you need them, it might be time to consider a change.
  2. Lack of Personal Attention: Your financial situation and goals are unique, and your advisor should treat them as such. If you feel you're receiving a one-size-fits-all approach, it could sign that you need a new advisor.
  3. Underperformance: If your portfolio is consistently underperforming and the advisor cannot provide a satisfactory explanation or strategy to improve, it might signal a need for change.
  4. Change in Financial Goals: Your financial goals and needs may change over time. If your current advisor needs to be equipped to handle these changes, you may need to find an advisor who can.
  5. High Fees: If you're paying high fees for your advisor's services, you might want to explore other options. High fees can eat into your returns over time.
  6. Misaligned Investment Philosophy: If your investment philosophy doesn't align with your advisor's, it could lead to conflicts and dissatisfaction.
  7. Trust Issues: Trust is crucial in a relationship with a financial advisor. If there are trust issues, such as a lack of transparency or unethical behavior, it's time to consider changing advisors.

Remember, it's always your right to switch advisors if you're unhappy with the service you're receiving. Finding an advisor who understands your needs, communicates well, and is committed to helping you achieve your financial goals is important.

Understanding when to change financial advisor

Changing financial advisors can be daunting, and it's important to understand the signs that indicate it may be time to look for a new one. There are several factors you should consider when making the decision:

  1. Investment Philosophy: Your advisor should be familiar with the type of investments you prefer and knowledgeable on investment strategies that align with your objectives.
  2. Reputation: Ask around for referrals and research reviews of the advisor online. It's essential to understand how they are viewed in the industry before making a decision.
  3. Fees: Make sure you understand what fees the advisor is charging and if there are any hidden costs. High fees can significantly reduce your returns over time, so make sure you know what you're getting into.

Finding the right financial advisor is essential for achieving your long-term financial goals. It's crucial to weigh all of these factors carefully before making a decision. Once you've done that, it's time to start looking around and interviewing potential advisors who meet your criteria.

Factors to Consider when Hiring a New Financial Advisor

The decision to hire a new financial advisor, particularly for high-net-worth individuals, involves weighing numerous factors. This blog post will explore the top five considerations that can significantly impact the effectiveness of your financial management.

  1. Expertise and Experience: It is essential to find an advisor with a proven background in managing high-net-worth portfolios. The advisor should have a robust understanding of complex investment strategies and the ability to navigate volatile markets.
  2. Fiduciary Responsibility: Your advisor should always act in your best interests. Therefore, choosing an advisor with a fiduciary responsibility can help ensure your wealth is managed with your financial goals in mind.
  3. Transparency: A transparent advisor will provide regular, detailed updates about your investment portfolio. This includes performance, costs, and any potential risks.
  4. Personalized Approach: Every client is unique, and so are their financial goals. An advisor who understands this will develop a tailored strategy that aligns with your specific needs and objectives.
  5. Credentials and Reputation: Trust is crucial in a financial advisor-client relationship. Review the advisor's certifications, reputation, and ask for client references to validate their credibility.
  6. Communication: A highly communicative advisor will keep you informed and updated on the progress of your investments. Establishing a regular schedule for updates can help address any questions or concerns promptly.
  7. Technology: Investing in today's markets requires advisors to leverage technology in order to stay ahead of the curve. Consider an advisor who utilizes advanced technologies as well as

With these considerations in mind, choosing a new investment advisor or money manager becomes a calculated decision, ensuring your wealth is managed with utmost competence and care.

Steps to Changing Your Financial Advisor

Once you've decided to change advisors, there are several steps you should take.

  1. Do Your Research: Look around for potential advisors who specialize in the type of investments and strategies that best align with your goals. Read reviews online and ask other investors for referrals.
  2. Interview Potential Advisors: Once you narrow your search, arrange for interviews with the potential advisors. Ask them questions about their experience, fees, and investment philosophy.
  3. Make Your Decision: After you've done your research and interviewed potential advisors, make a decision on who will be the best fit for you.
  4. Set Up an Account: Once you've chosen your advisor, set up an account with them and transfer your assets.
  5. Track Performance: Remember to track the performance of your new advisor. It's essential to regularly assess how they're managing your investments and if it aligns with your goals and expectations.

By taking the time to carefully research potential advisors and understand their strategies, you can ensure that you will be well taken care of in the future. Good luck.

The Transition Phase

Making the transition from one financial advisor to another should be managed with care to avoid any potential disruptions or mishaps. Here's a step-by-step guide on how to ensure a smooth transition:

  1. Notify Your Current Advisor: Start by having an open conversation with your current advisor about your plans to make a change. This will help pave the way for a smooth transition and ensure that all parties are on the same page.
  2. Initiate The Transfer of Assets: Your new advisor will provide a transfer form that you need to fill out and sign. This form will be sent to your current advisor or directly to the custodian. The process could take a few weeks.
  3. Close Old Accounts: Once the assets have been moved, it's time to close down your old accounts. Ensure all automatic payments and deposits are stopped or redirected to the new account.
  4. Set Up New Account Preferences: With your new advisor, establish preferences for reports, communication methods, and frequency of contact. Make sure they align with your needs and expectations.
  5. Review and Adjust Your Financial Plan: Review your financial plan with your new advisor once the transfer is complete. Make adjustments as necessary to ensure it aligns with your goals. Regularly monitor your new advisor's performance to ensure it meets your expectations.

Remember, transitions can be a complex process, and patience is key. Your new advisor should be willing to guide you through this process and address any questions or concerns you may have.


In conclusion, the process of finding and hiring a new financial advisor, especially for high-net-worth individuals, is a calculated journey. It involves key considerations such as the advisor's expertise and experience, fiduciary responsibility, transparency, personalized approach, and credentials. Your transition from one advisor to another should be thoughtful and well-planned, with open communication, strategic asset transfer, closing of old accounts, and setting up new account preferences. Finally, with your new advisor, you should continually review and adjust your financial plan to ensure it aligns with your goals.

We hope you found this article insightful and useful in your search for a new investment advisor. Please feel free to share this post with others who might benefit from it. We also encourage you to provide your own advice or experiences in the comments below. Your interaction makes our community richer and provides valuable insights for others facing the same journey. Thank you for taking the time to read and engage with us.

Frequently Asked Questions

Can I have more than one financial advisor?

Yes, you can absolutely have multiple financial advisors. However, you should keep in mind that having multiple advisors may increase the complexity of your investments and make it easier to track.

Can I transfer my assets from one advisor to another without closing old accounts?

No, you must close any old accounts before transferring assets to a new advisor. This ensures that any payments or deposits will be correctly sent to the old account. Additionally, transferring assets without closing old accounts can create unnecessary tax repercussions.

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Jim Koetting
Chief Digital & Marketing Officer

An industry leader with 28 years of experience in digital marketing, spearheading the digital transformation at Paragon Capital Management.