Top 10 Reasons to Consider Switching Advisors
With the recent volatility observed in the markets, now may indeed be one of the best opportunities to take a thorough review of your investment portfolio. This is a crucial time to update your financial plan as needed, take action to stop postponing your estate planning, and seriously consider hiring a qualified financial advisor to help you expertly navigate and plan for your Retirement Journey.
Sometimes the Grass is Greener on the Other Side!
Alarming Statistics
70% of financial planning recommendations are not implemented. (*Forbes.com)
73% is the average gap between the financial planning services clients expected compared with the services they received. (*Spectrem Group Survey)
36% of Americans have a written financial plan; 96% of those with a plan feel confident they will reach their goals. (*Charles Schwab Survey)
88% of clients surveyed believe passing away without an estate plan is irresponsible; 58% of those same clients do not have an estate plan in place and almost half of those that have a plan need it updated. (*Merrill Lynch Survey)
* R.A. Prince & Associates Advisor Survey from Forbes.com 9/12/2021 ; The research firm, Spectrem Group conducted a study of wealthy investors in 2021 ; 2024 Schwab Modern Wealth Survey conducted by Logica Research ; Merrill Lynch Survey quoted from EncoreEstate Plans Webinar 11/18/2024
Top Ten Reasons to Consider Switching Advisors
Structured Meetings: There is currently no established meeting schedule in place, and agendas are often absent or poorly structured.
Pro-Active Advice: There is a noticeable lack of innovative new ideas; advice is received only when prompted and is not proactively provided by your advisor.
Estate Documents: Your estate documents have not undergone review or been updated in more than five years; even more concerning, there may be no estate plan currently in existence.
Financial Plan: You do not have a comprehensive financial plan established, or if you do, it has not been reviewed on an annual basis to ensure it remains relevant and effective.
Plan Recommendations: Recommendations outlined in your financial plan are not being actively tracked or implemented; after all, a financial plan that remains unimplemented holds no real value.
Coaching: Your advisor is not effectively acting in the capacity of a financial coach, which is essential for your financial growth and success.
Risk Tolerance Alignment: Your investment risk profile is not aligned or connected to your overarching financial planning goals, which can create discrepancies in your strategy.
Retirement Priorities: Significant retirement concerns, including Social Security timing, healthcare costs, withdrawal strategies, tax planning, potential relocations, caring for an aging parent, and overall organization, have not been adequately addressed.
Risk Management: Risk management strategies have not been reviewed periodically for areas such as life insurance, disability coverage, long-term care, property and casualty, business transitions, and healthcare needs.
Fees: It's essential to carefully assess whether the fees you pay your financial advisor adequately match the comprehensive services you receive in return. If you're currently paying over 1% in advisory fees alongside fund charges, it might be an appropriate time to reconsider your options and explore potential alternatives. Recently, I undertook a review of a client's investment portfolio and discovered that they were paying 1.30% in advisory fees in addition to approximately 0.60% for their funds, which led to a total fee that was alarmingly close to 2%, a figure that is considered quite high in the financial advisory landscape.
BONUS: Be careful if your Advisor only offers investments available on their platform. For example, one client bought Fidelity Flex Funds through his Advisor. To move his assets to a new firm, he would need to sell the funds first and then transfer the cash. This could lead to unexpected capital gains and being out of the market longer than wanted.
Ville Wealth Management is a Registered Investment Adviser in the state of Ohio. Advisory services are only offered to clients or prospective clients where Ville Wealth Management and its representatives are properly registered or exempt from registration. “Likes” should not be considered a positive reflection of the investment advisory services offered by Ville Wealth Management. Brian Jaros is an investment adviser representative of Ville Wealth Management. The firm is a registered investment adviser and only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The information presented on this post is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. Comments should not be construed as an offer to buy or sell, or a solicitation of an offer to buy or sell the investments mentioned. A professional adviser should be consulted before implementing any of the strategies discussed. Investments involve varying degrees of risk, and there can be no assurance that any specific investment or strategy will be suitable or profitable for a client's portfolio. All investment strategies can result in profit or loss.
