Is It Time to Dump Your Financial Adviser?Your investment adviser is an important partner in your life -- after all, who knows your intimate financial details better? It's an intensely personal, yet professional, relationship. But what happens when you discover that it's not an ideal marriage? When is it time to ask for a divorce?

It may be sooner than you think. In a recent survey by PNC Wealth Management of affluent individuals -- those with at least $500,000 in investible assets -- only 15% said their advisers, "really made a huge positive difference," or gave them an "A." Some 43% said they were looking for more attention from their financial advisers. If so many high-end clients are dissatisfied with the service they are getting, how well could advisers be treating their average Joe or Jane Investors?

Just as there are in matters of the heart, there are tell-tell signs that your adviser is "just not that into you" -- and vice versa.

• Annoyance.
"You hate when they call and feel like they are always trying to sell you something. You get annoyed every time you get something in the mail. They sound annoyed whenever you call, and are frustrated by your questions," explains Susan Hirshman, author of Does This Make My Assets Look Fat?

• We Never Talk Anymore. Maybe there was a time when you enjoyed chatting with your adviser, but now the conversation is all but dead. "Your phone calls or emails are not returned within 12 to 24 hours. You haven't had a detailed conversation about your goals and financial situation in more than a year. You haven't reviewed or discussed your tax return over the last 12 months," says certified financial planner Thomas Casey of Casey, Thomas & Associates.

If you find this happening, review your investment policy statement: What did you and your adviser agree to in terms of frequency of contact? Maybe your expectations have changed. "Make this clear to your adviser, and if necessary, update your policy statement. Communicate your concerns without being confrontational or overly emotional," advises Stephen Horan, head of professional education content and private wealth management at the CFA Institute, an association of investment professionals.

• A Sense of Selfishness. Who's getting best served in this relationship: you or your adviser? Take a good look at your account activity. "If you're paying your adviser via commissions and you are seeing a lot of activity, this may be a sign your adviser is more interested in improving their financial picture than yours," says Bonnie Kirchner, author of Who Can You Trust With Your Money? Get the Help You Need and Avoid Dishonest Advisers. On the flip side, if you're paying fees to have your assets managed and no adjustments are being made over time, you may not be getting what you are paying for.

John Graves, a financial planner with Renaissance Group, offers this simple test for when it's time to change advisers: "When he speaks more often than he listens. We often get caught up in our own importance, to our clients' disadvantage," says Graves.

• Confusion Is Rampant. Be leery if there's a lot of turnover at your adviser's office, if your adviser keeps changing firms or repeatedly makes careless mistakes like misspelling your name. This could be an indication of instability, points out Brian Patrick Kuhn, a certified financial planner with Retirement Planning Services. All this distraction could be costing you.

Confusion on the other side of the relationship is also a bad sign. If you've been with one adviser for a while, and you still don't understand your accounts or the overall plan, you should be concerned. "Sometimes people go with a planner's recommendations because it sounds good and they trust them, but they don't fully understand the recommendations," says Kuhn. "If a long period goes by and you're still unclear, the planner hasn't done their job, and the relationship can't go on forever without that clarity."

In the end, sometimes it just comes down to a personality mismatch. But while that might be tolerable, poor performance may be a deal-breaker. You should have a basic understanding of the types of investments you own, how they are tracking against the overall market and why they are under- or outperforming appropriate benchmarks, says Kirchner. If your portfolio is consistently and significantly under-performing, you may need to find someone with a better track record," she adds.

Analyze What Happened, and Move On

Much as you would try to figure out what went wrong with a marriage heading for a divorce, make sure you assess what happened in your financial relationship. "Most times it can be summed up in two words: communication and expectations," says Hirshman. "Advisers fail to communicate their process, client service model, fees and performance, clearly or accurately, for example. They don't do what they say, or they do what they say, but the client never understood it," she adds.

Or they sell performance. "If an adviser does this, they live and die by the results of the market, and as we know, they are unpredictable, and what happened in the past does not guarantee short-term future results," says Hirshman.

Says Kelly Campbell, author of Fire Your Broker: "Many advisers simply don't have the experience. Many don't have the knowledge, and some are understaffed. Often times, they don't look at your whole financial picture."

Once you're sure the relationship is beyond repair, you can exit verbally, in writing or simply by transferring your account.

"Expressing your wishes in writing in a clear manner ensures there is no question of your intent to the end of the relationship," says Kirchner.

"Hire slow and fire fast," advises Campbell. "Find their replacement, do a lot of due diligence on them and then fire the old one."

Getting It Right the Next Time

Ask for references, and pay attention to designations. "CFP [certified financial planner], for example, is an important one," Campbell adds. Check them out via the Financial Industry Regulatory Authority or the Securities and Exchange Commission.

Narrow your list down to three advisers, and put them through a thorough interview process. "Avoid advisers who are vague about how they are compensated, are unclear about how your money will be invested or cannot provide you with adequate information on where your money will be kept and whether it will be covered by the Securities Investor Protections Corporation," says Kirchner.

Finally, says Campbell, "Think of your investments like you would a newborn baby. They need the best care you can possibly get, and you must have a complete trust in the adviser. If not, it's time for a new adviser."

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Easystguy@gmail.com

An expensive financial adviser is NOT needed by the bulk of "average americans". If you are an average American, you may find the below video helpful. It's about the basics of investing. It's fairly short, and it's free! Please take a look!

http://www.youtube.com/watch?v=QwTgOJgRJX8

July 25 2011 at 4:33 PM Report abuse rate up rate down Reply
Dereck

Major Fraud Alert


The entire Federal Banking System under FirstGov has been "Consumed" and "Levied" by way of a Maryland State Circuit/District Court Ruled “Appropriation and Garnishment” of all Future Earnings prior to and after 2004 against Bank Of America by way of the F.D.I.C. Regulations Prohibiting failing Banks from Merging with other failing Banks between the Dates of 08/04/08 and 10/09/09.

Bank of America violated the 21st Century Act: Final Amendments to Regulation CC Section: http://www.federalreserve.gov/boarddocs/press/bcreg/2004/20040726/attachment.pdf

seeking reimbursement of Credit, Loan, and Finance Balances as a "Bank Entity" and not a "Nonbank Consumer" as specified on Pages 85 and 86.

The person they sued through a LLC. Debt Collection Company and Law Firm was the "World Fortune Owner" who "Counterclaimed" and won.

Now all Contracts of any Corporations (Including Employment) under the "Controlling Interest" of any Investment Bank Worldwide are "Null and Void", and are also under the stipulated Rules and Regulations of an "Closely-held S Corporation rendering all Employed under Legal Actions against “Domination”, and also means that "No Corporation can hold Shares" officially making every Stock Exchange on the Planet a "Ponzi Scheme" by default.

Businesses owned by the States (Public Corporations) are being sold Stock Shares by Corporations also under the Federal Banking System in this Worldwide "Ponzi Scheme". The World Fortune Company Merrick Inc. Sweden is dissolving Millions and Billions of Dollars from "All Levels of Government"in the U.S. of Financing based upon Years of "negligent inaction" involving this case.

The Federal Government has already been forced to discontinue supplying the Financing States use to pay their debts, Persons in Government Offices may want to begin to take their jobs more seriously, these are different times from 10 Years ago and you will not be accepted civil servants here just because you say you are here to do the right thing.

May 29 2011 at 1:31 AM Report abuse rate up rate down Reply
Barb

I went to Edward Jones after receiving a rather large 401K. After 30 days, the gal left to go to another place, she kept calling trying to get me to follow her. EJ sent me to a guy that had his own office, 30 days later, HE left for another place. I get a call from his replacement, she wanted to "nurture me" I got fed up and will leave my money right where it is. The first thing they wanted to do was start moving things around as that is how they make their money.

February 07 2011 at 5:54 PM Report abuse +1 rate up rate down Reply
D P

I'm fairly new at the investing game. To me it has been a game because I would always practice with portfolios on AOL. Now that it"s for real I went to a well known investment group and gave them a chance to turn a small profit with $25,000 and let her make the choices. After one week it dropped about a $1000.00. After 3 months the dang thing was still down the same amount. Obviously she never paid me any mind as I never heard a word from her until I transferred to another investment company. Now, did I jump the gun, should I have made a call, or what should I have done?

February 07 2011 at 3:12 PM Report abuse +1 rate up rate down Reply
madoffcoalition

Do you feel your investments are safe? Do you think your account statement reflects the balance in your account?
Do you know that while Irving Picard is questioning and accusing JPMC and the Wilpons, that he’s also pursing innocent investors?
Do you know that there’s no guarantee that your broker is not a crook?
Read how Congress is helping and how you can support the safety of your own investments. Please sign our petition to help all investors.
http://t.co/MbmIGy7

February 07 2011 at 12:31 AM Report abuse rate up rate down Reply
ascha79846

Was with Merrill Lynch back in 2000 and they never called my once during the crash. They just kept billing me quarterly fees. I pulled out after losing 50% of my IRA and will never use an advisor again.

February 06 2011 at 11:18 PM Report abuse +1 rate up rate down Reply
1 reply to ascha79846's comment
Easystguy@gmail.com

you should do it yourself! The video below can help! Short-ish and free! Investing doesn't have to be hard (or expensive!)

http://www.youtube.com/watch?v=QwTgOJgRJX8

July 25 2011 at 4:35 PM Report abuse rate up rate down Reply
ascha79846

The fact that "Advisors" base their fees on the size of your portfolio and not a percentage of the return tells you alot about the business. The average computer savvy investor today has as much info as any so called professional.

February 06 2011 at 11:06 PM Report abuse +3 rate up rate down Reply
2 replies to ascha79846's comment
zebra365

There is a company that charges according to your return. I know nothing about them and am not recommending them, I just read their free essays. But, just to say they are out there. http://www.deltaga.com/

February 07 2011 at 1:31 AM Report abuse rate up rate down Reply
Jeff Leonard

The SEC doesn't allow firms to bill on a percentage of return.

February 07 2011 at 6:27 PM Report abuse rate up rate down Reply
pjclaire

THANK YOU PBIHOMES. Another 17 months till 59.5 and my expectations are to do the same (new CORVETTE). Just started being conservative and like steay (but not high) returns. Enough to spend and live on. That's all I ask.

February 06 2011 at 7:09 PM Report abuse +1 rate up rate down Reply
pbihomes

I am at the age to be conservative and my advisor has me just where I want to be. My return was over 8% last few years and thats fine with me. Now is the time I'm going to start spending it. The kids can make their own retirement. I just bought myself a corvette.

February 06 2011 at 4:16 PM Report abuse +1 rate up rate down Reply
1 reply to pbihomes's comment
ascha79846

The average return for the market has always been about 8-10 percent. That should tell you alot about how hard your advsior is working.

February 06 2011 at 11:08 PM Report abuse +2 rate up rate down Reply
Ed Perkins

Best way to solve this communicatin problem is to shift all financial assets over to Fidelity. I have been a loyal customer for over three decades. Go to their offices and talk person to person.

February 06 2011 at 3:00 PM Report abuse rate up rate down Reply
1 reply to Ed Perkins's comment
ascha79846

I have been a customer at Fidelity since 1990 and have found them to be useless for anything but operating a great website for trading. They offer no real advice and if you pay them to manage your money they put it in a portfolio containing hundreds of funds and thousands of stocks. Basically they are putting you in an index fund and charging you for it. I still use Fidelity but am totally self directed.

February 06 2011 at 11:13 PM Report abuse +1 rate up rate down Reply