When is it time to change a financial advisor?

If your financial advisor turns up at your door, with a fancy new product pitch each time then he is no longer a financial advisor.

Apr 25, 2015 07:04 IST India Infoline News Service

Trust is the first investment you make, with your financial advisor. But, what if your trust is taken for granted and your investment goes bad. It's time to switch your financial advisor. One can ensure through the following warnings signs that it is not too early on their part to call the relationship off.

Lack of stability - If your financial advisor is job-hopping then one can assume that he is completely engaged in his own financial plan and has little interest in anybody else's plan. Moreover, if the advisor pushes you to transfer all your investments under his new company, be sure that he is not taking care of your benefits but his.

Product is doing fantastic - If your financial advisor turns up at your door, with a fancy new product pitch each time then he is no longer a financial advisor. It means that your financial planner has opted to become a sales person, who is more focused on selling products.

Busy at the moment - Will you call a person financial advisor if he is too busy to help you with financial advice? A bad financial advisor will return your calls or emails very late as if your inquiry about financial plan is his secondary work.

Clueless - A financial planner, who is clueless about the returns or performance attained on your portfolio or does not know the exact expenses charged against your portfolio is not an appropriate person. These are not the traits of hard-core financial planners, and you should get one at the earliest.

Concealing fees - A fake financial advisor will do anything to keep you from knowing his actual fees or commission earned from your investments. Just like you won't buy anything without knowing the cost then why buy a financial advice without knowledge? The point should be kept in mind that you are the one, who is ultimately paying the fee or commission. Therefore, it is your right to know about it. 

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