See how it works when you decide to change your financial advisor. You may be working with somebody who served you well over the years, but things have changed (for whatever reason). If you’re exploring other options, you need to know what’s involved.
This video covers:
☑️ Some potential costs you may face as you switch advisors.
☑️ Tips for making it smooth (and less expensive).
☑️ Examples of when you should change advisors.
Taxes are one of the biggest potential pitfalls, but there are ways to manage taxes (capital gains, in particular). By transferring “in kind,” you can potentially reduce or slow down any tax consequences.
Annuity surrender charges could also be an issue, but there are several approaches to minimizing the amount you pay. Whether you wait it out or use a “free” 10%, you might be able to dodge some fees.
Ultimately, the goal is to find a new advisor that has the skills and expertise you need. That person should also be a good fit personally—you need to trust them, and you need to understand each other well, as your financial goals are critically important.
When should you switch financial advisors? There are plenty of good reasons, and one of the biggest ones is trust. If you’re no longer comfortable with the person handling your finances, it’s smart to shop around and explore alternatives. We’ll cover several other good reasons, as well, which may provide validation if you’re thinking of making a change.
You don’t owe anybody an explanation for why you’re changing. If you want to notify your old advisor or send a letter to share your thoughts, you’re welcome to do so. But sending letters or forms to the old advisor is not always required.
Learn about working with me at https://approachfp.com/
✔️ Flat-fee and hourly advice options
✔️ One-time projects available
✔️ Investment advice (optional)
Justin Pritchard, CFP® is a fee-only fiduciary advisor who can work with clients in Colorado and most other states.
Want to learn more about working with me? I’d be happy to chat.
0:00 Why You Need the Right Advisor: Intro
0:30 Costs to Change Your Advisor
0:30 Taxes When Making a Switch
1:39 Annuity Surrender Charges?
2:40 Commissions to Liquidate Holdings?
3:26 Your Time Commitment & Tips
4:05 Other Costs and “Dings”
4:35 In-Kind Transfers
5:35 Steps to Change Your Financial Advisor
7:12 When Should You Change Advisors?
Learn more about this topic at https://approachfp.com/change-financial-advisor/
It’s impossible to cover everything you need to know in a video like this. The only thing that’s certain is that you need more information than this. Always consult with a CPA before making decisions or filing a tax return. This is general information and entertainment, and is not created with any knowledge of your circumstances. As a result, you need to speak with your own tax, legal, and financial professional who is familiar with your details. This video is not a substitute for individualized, personal advice. Please verify with your plan administrator when employer plans are involved. This information may have errors or omissions, may be outdated, or may not be applicable to your situation. Investments are not bank guaranteed and may lose money. Opinions expressed are as of the date of the recording and are subject to change. ““Likes” should not be considered a positive reflection of the investment advisory services offered by Approach Financial, Inc. The Comments section contains opinions that are not the opinions of Approach Financial, Inc., and you should view all comments with skepticism. Approach Financial, Inc. is registered as an investment adviser in the state of Colorado and is licensed to do business in any state where registered or otherwise exempt from registration.