Like any relationship, it can be quite uncomfortable when you want to leave. Should you text, email, call, meet in person, or just ghost them? No matter who you're breaking up with, emotions are usually involved, and this is especially true when it involves the person managing your money. Money is an emotionally charged subject, and severing ties with someone who knows your financial life inside and out can feel daunting. But fear not: it's not as hard as you think.
Put things in perspective
Before taking action, remind yourself that this is merely a business decision. You're paying for a service, and if the quality of advice isn't up to par, it makes sense to seek other options. If you're feeling guilty, try comparing your relationship with your financial advisor to the person who cuts your hair.
Would you keep going back if your barber or stylist repeatedly shaved a mohawk into your head instead of giving you the trim you asked for? Of course not. You would find someone else who listens to your needs. It's no different in an advisor-client relationship.
Notify them on your terms
While you don't technically have to inform your advisor of your intention to leave, it's a courteous gesture. Reach out in any way you feel comfortable. Whether you send an email, place a call, or set up an in-person meeting, make sure to communicate your desire to end the relationship clearly.
It's always a good idea to document everything so you have something in writing to reference should your request get delayed or ignored. If you make a phone call or schedule an in-person meeting, make sure you walk away with something signed by you and your advisor via email or physical paper.
Here's a simple example email you can send to your financial advisor to notify them you want to end the relationship:
Hi (Advisor's Name),
I am reaching out to you for two reasons. Firstly, I want to express my gratitude for your valuable advice and guidance throughout the years. Secondly, I wanted to discuss the next steps in my financial journey. After careful consideration, I have decided to take a different direction. I will be transferring my account(s) to another institution that aligns better with my present and future needs. I wanted to inform you in advance as you will be receiving the transfer requests shortly. Thank you for your understanding and support during this transition.
Best regards,
(Your name)
Review the paperwork
Depending on your advisor's contract, there may be fees and other requirements that need to be taken care of before you part ways. For example, if they hold your assets in their own accounts instead of with a third-party custodian, you'll have to close those accounts and move the money elsewhere. Make sure you double-check all the paperwork, as your agreement may not explicitly state these fees and requirements clearly without a close read.
Reassess your financial situation
After you've left the advisor, take time to reevaluate your finances and determine if any changes need to be made. This would be an opportune time to bring in a new financial professional to analyze your financial roadmap and make appropriate recommendations. Moreover, your new financial representative can help with the transfer of your accounts.
Look forward to a better roadmap
Work closely with a CFP® professional who is held to the highest standards, putting your best interest above all else. In doing so, you will benefit from having a holistic approach to your finances. A CFP® professional will help you build and manage a comprehensive financial roadmap that is tailored to your unique needs, goals, and timeline.
This can give you the peace of mind knowing that you're working with someone who has your best interests in mind. As an added benefit, you'll also receive guidance on non-financial matters such as insurance and tax planning, as well as access to estate planning solutions through our third-party partners.
The Facet difference
Breaking up with an advisor often happens because the relationship feels transactional rather than personal. At Facet, we believe financial planning is essential to living well, not just managing a portfolio. We operate on a membership-based model, which means our CFP® professionals provide objective, fiduciary advice without the conflict of interest that comes from charging based on how much money you have. We help you manage your full financial life, from retirement and investing to taxes and equity compensation, ensuring your money reflects your values.
