leaving an advisory firm - suggestions?

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Finance101
Posts: 1
Joined: Tue Mar 28, 2023 7:40 pm

leaving an advisory firm - suggestions?

Post by Finance101 »

Long time listener, first time caller ....

We have been working with a wealth advisory firm for almost a decade.  NAPFA, fee-only (AUM), fiduciary, CFP, etc.  Overall the experience has been good.  They have helped us develop a strong strategy, optimized our asset allocation and fund management to reduce tax burden, recommended a few specific investments that helped protect our portfolio over the past few years, etc.  These benefits have more than covered the fees we have paid.

But ... over the past 16 months or so our relationship and the quality of their services have eroded.  I believe this has been driven by org and personnel changes on their end. We have experienced communications breakdowns, logistical problems, and troubling (sloppy?) errors in some of their recent projections and models.

I hope this will resolve soon, but I feel the need to prepare for an alternate solution if it does not.

Has anyone navigated a departure from advisors before?  Are there threads or resources to review?

Any advice on how to prepare for this would be greatly appreciated!
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cheese_breath
Posts: 11786
Joined: Wed Sep 14, 2011 7:08 pm

Re: leaving an advisory firm - suggestions?

Post by cheese_breath »

Do you plan on going to another advisor or DIY?

If you're going to another they can handle it for you. If going DYI with Vanguard, Fidelity, or another they can handle it for you.

And don't feel bad about leaving. It's business. You have no obligation to your current advisor if you're dissatisfied with their service.
The surest way to know the future is when it becomes the past.
kojima
Posts: 267
Joined: Fri Feb 10, 2023 2:06 pm

Re: leaving an advisory firm - suggestions?

Post by kojima »

I've recently consolidated my investment portfolios with multiple firms and brokerages and it was much more simple than I expected. Just put in a transfer request from the firm you want to transfer your assets to and that's it, they will take care of the rest.

I would just set up a call with your current advisory firm and let them know that you appreciate their service but now intend to take care of it on your own / transfer to a new firm. Don't feel obligated or guilty.
Parkinglotracer
Posts: 3944
Joined: Fri Dec 20, 2019 2:49 am
Location: Upstate NY

Re: leaving an advisory firm - suggestions?

Post by Parkinglotracer »

Welcome to the forum. You have come to the right place for help. Where is your money being held? If it is at schwab, fidelity, or vanguard you can call them to remove the third party relationship with your advisor. One call does it all. You don’t owe your advisor anything … leave With saying or without saying goodbye. A short note saying I have decided to go in another direction may be best for you.


Some advisors may have you in an overly complicated portfolio of investments that you may want to restructure. I’d read up on the boglehead wiki three fund portfolio. Of course as you go thru this you will want to understand the tax consequences of your actions. Post where you are in your journey and folks will help. There will be salesmen and women at other places to talk you out of doing it yourself. You will have to decide if you are suited to structure a simple low cost portfolio and stick with it. It has worked for many a boglehead here.
Last edited by Parkinglotracer on Wed Mar 29, 2023 5:57 am, edited 1 time in total.
livesoft
Posts: 86075
Joined: Thu Mar 01, 2007 7:00 pm

Re: leaving an advisory firm - suggestions?

Post by livesoft »

Has anyone navigated a departure from advisors before? Are there threads or resources to review?
from 6 days ago:
viewtopic.php?p=7183853
where this from 3 weeks ago was linked:
viewtopic.php?t=400421
Wiki This signature message sponsored by sscritic: Learn to fish.
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Sandtrap
Posts: 19590
Joined: Sat Nov 26, 2016 5:32 pm
Location: Hawaii No Ka Oi - white sandy beaches, N. Arizona 1 mile high.

Re: leaving an advisory firm - suggestions?

Post by Sandtrap »

Finance101 wrote: Tue Mar 28, 2023 8:21 pm Long time listener, first time caller ....

We have been working with a wealth advisory firm for almost a decade.  NAPFA, fee-only (AUM), fiduciary, CFP, etc.  Overall the experience has been good.  They have helped us develop a strong strategy, optimized our asset allocation and fund management to reduce tax burden, recommended a few specific investments that helped protect our portfolio over the past few years, etc.  These benefits have more than covered the fees we have paid.

But ... over the past 16 months or so our relationship and the quality of their services have eroded.  I believe this has been driven by org and personnel changes on their end. We have experienced communications breakdowns, logistical problems, and troubling (sloppy?) errors in some of their recent projections and models.

I hope this will resolve soon, but I feel the need to prepare for an alternate solution if it does not.

Has anyone navigated a departure from advisors before?  Are there threads or resources to review?

Any advice on how to prepare for this would be greatly appreciated!
To OP:
Meet with legal counsel for estate planning, you may need/want to establish trust accounts, etc.
Meet with your CPA to strategize long term financial strategies independent of "Financial Advisor salesman" perspectives.

Contact Vanguard VPAS services. Consult. then. . concurrently. . .
Open accounts at either Vanguard or Fidelity, etc.

Have your Vanguard or Fidelity transfer your funds, etc, to Vanguard/Fidelity, etc. (not your Financial Advisor Salesperson).
Done.

To OP:
This is one pathway to do "now" rather than wait for. . what are you waiting for. . . ?

j :D
dis laimer: zillions of ways to do things and perspectives based on nil to zero to extensive actual experience. . this is only one.
Wiki Bogleheads Wiki: Everything You Need to Know
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