5 Good Reasons to Break Up with Your Financial Advisor

Are you stuck with a bad financial advisor? Maybe it is time to part ways!

Nobody enjoys breaking up with someone. Unless it’s your financial advisor who’s no longer being helpful.

In that case, you should immediately break up with your financial advisor. You are working hard to earn money and build wealth. And if the advisor is not on the same page as you are, then it’s time to call quits.

Below are a few reasons you may want to fire your financial advisor.

Top Reasons to Break Up With Your Financial Advisor

1. Lack Of Communication 

Communication is the base of any relationship. Without it, misunderstandings will only grow. 

Financial advisors should maintain frequent communication with you. It’s their job to understand your financial goals and lay wealth management options in front of you.

It’s a red flag if your advisor won’t answer your calls or emails, or simply doesn’t keep you informed.

You need someone who keeps you posted about your investments and market trends. If you don’t get that from your advisor, get a new one. 

2. The Advisor is Making Unrealistic Promises

We said it before and we’ll say it again- Nobody can guarantee market performance. Sure, sometimes predictions do come true with analysis. 

But you cannot rely on promises that seem too good to be true. The stock market is uncertain. Advisors can enlighten you with some insights. However, they cannot guarantee how much returns you’ll earn. That depends on so many external factors affecting the market. 

Don’t fall for fake promises. Instead, look for an advisor who can show you a realistic scenario. 

3. The Advisor is Not Aware of Market Trends 

Understanding the market and aligning your investment is literally the whole job of an advisor. 

The market study is a crucial part of a financial advisor’s job. If your advisor is not passionate about the market and finances, they can’t help you.

You are trusting them with your money. And you, essentially, want to save the hassle of keeping up with the market trends. 

If your advisor is not able to answer your questions or doesn’t know where to plan your next investment, there’s no point in keeping them.

4. The Advisor is Not Paying Attention to Your Financial Goals 

Every individual is different and so are their financial goals. Financial advisors must understand your financial goals before sharing any insights. 

The advisor should make your financial goals their priority. Even better if they can help you get beyond your goals, which is possible with the right advice. 

There shouldn’t be even the slightest conflict of interest. At the end of the day, it’s your money and your wealth goals. And if you don’t see that happening with your advisor, you have all the right to break up with them.

5. The Advisor Doesn’t have the proper licenses

This is a major red flag. Immediately break up with your financial advisor if they don't have a proper license. 

Taking financial advice from a non-licensed individual is as good as asking your friend where to invest. Your friend doesn’t understand your financial situation and neither would an advisor without a proper license.

God forbid, if something goes wrong, these advisors won’t be able to help you. 

A simple way to find out if an advisor is smart enough is, ask them what trends are going on in the market. If there’s no glint of shine in their eyes as they talk about the market, they aren’t made for it. 

Now that we’ve discussed enough reasons to break up with your financial advisor, let’s look at it from a different angle.

How to know if the Financial Advisor is Good for you?

You probably know the answer to the question from the above points. 

The right financial advisor:

  1. Has a thorough knowledge of industry trends and market performance. 
  2. Will only make realistic promises that include a long-term investment plan rather than quick money-making schemes.
  3. Prioritize your wealth goals and knows where to invest your money.
  4. Keeps you informed about the cash flow in your portfolio. 
  5. Has the proper licenses for the financial instruments they are selling.

Read more about how to find a good financial advisor.

Conclusion: Do You Even Need a Financial Advisor?

Yes. Absolutely!

You might be aware of mutual funds and the stock market, crypto even. But you cannot optimize your investment portfolio with a simple Google search or reading Twitter threads. 

Finance is more complex than it seems. You will get tired of keeping up with all your investments.

Instead, a financial advisor can take over your portfolio and make smart decisions for you. Of course, your say in it is above the advisor’s say. 

Having a dedicated financial advisor will save you a lot of time. And, it’ll also improve your chances of achieving your financial goals.