Should I fire my financial advisor?
Whether to fire your financial advisor comes down to four checks: are they a fiduciary, are they fee-only, are they actually serving your goals, and do their results — net of fees — justify what you are paying. Failing any one of these is a reason to look. Failing two is a clear yes. Most people stay too long with a non-fiduciary advisor out of inertia or guilt. Switching is much simpler than people fear. Your assets stay in your name. The new advisor handles the transfer paperwork. There are no exit fees on a fee-only advisor's service, and a properly structured custodian relationship can be moved to another fee-only RIA without selling anything in a taxable account. The main pain is a couple of weeks of forms. The main reward, in many cases, is years of better-aligned advice, lower all-in cost, and a planning relationship that actually fits your life.
Reasons to fire your advisor
- They are not a fiduciary at all times. If their answer hedges, you should leave.
- They take commissions or 12b-1 fees. Either as a fee-based hybrid or a broker. The conflict is real even when they are nice.
- They sold you a product without explaining all-in cost. Variable annuity, indexed UL, A-share funds — these usually signal commission income.
- They never built a written financial plan. If everything is "we'll talk at your next review," there is no plan.
- Performance has lagged a low-cost benchmark for 3+ years on a risk-adjusted basis. Fee drag plus poor security selection is a clear loss.
- They do not know your goals. If they cannot describe what you are trying to do in your own words, they are not advising you.
How to switch
- Hire the new fee-only fiduciary first. Sign their paperwork.
- The new firm sends an ACATS transfer request to your old custodian.
- Your assets move in 5–10 business days. Most positions transfer in kind, so taxable accounts do not realize gains.
- You send a short, written termination notice to the old advisor.
What to look for in the replacement
A fee-only RIA. Fiduciary at all times. Written financial plan in year one. Clear all-in cost on a $500K account. Verify the firm on adviserinfo.sec.gov before you sign. If you can, ask two existing clients about the planning process and the response time on emails.
What to expect to feel afterward
The first month after a switch usually feels strange. The new firm will ask for documents. You will second-guess yourself. After about ninety days, the new relationship is in motion and the old one is gone. Most people who switch wish they had done it sooner.