A good working relationship with your financial advisor is important to ensure that you are able to get everything you want from your investments.
However, sometimes you have to walk away and find a new advisor. Let’s take a look at the easiest and most professional way you can sever ties with your current financial advisor.
Read the Fine Print First
When you took on the first advisor, you may have had to sign a contract of sorts. Go over this contract with a fine-toothed comb to try to see if there are any severance clauses that might put a hiccup in your attempts to leave. You also need to do this to check up on any fees which you may have to pay. If the firm requires you to pay an annual service fee, is this fee cancelled when you leave or will you have to continue paying for the rest of the year?
If you are clear that you can walk away from your advisor without repercussion, all it will take to cut ties with them is a formal letter explaining the situation.
Collect the Records
One of the first things you should do when preparing to leave the firm is to obtain a complete history of your investment records. You need to do this to ensure that you have complete control over the transfer of any funds when they are moved. With the records on hand, you will be able to see if any of the funds go missing and how best to recover them.
Hand Over the Reins
When you choose to leave one financial advisor, it is usually because you have another already in mind. If you do, you should prepare to hand over the reins to them as soon as possible. The sooner they have permission to act on your behalf, the sooner you can sit back and let them take control.
They should be the one engaging with your former financial advisor over the new funds. Make sure that you are kept fully informed at every turn; it is your money they are dealing with after all.
Open Legal Proceedings
If you left the previous financial advisor due to a negative incident, you may want to open legal proceedings against them. This might be especially true if you wish to claim compensation for mis-sold investments.
It is better to first completely sever ties with them before you involve the courts. You do not want to give them the opportunity to hold any sort of power over you just in case they decide to do something malicious at the last moment.
The best way to say goodbye to your financial advisor will always be calmly and professionally. If you are leaving on good terms, you might even decide to get them a small gift to thank them for the aid they have given you over the years. If you feel like you are ready to move, don’t be held back. Follow the tips in this article and before long you will be ready to pursue your new financial endeavours.