What Should You Do When Your Financial Advisor Leaves?
You can be happy for someone and frustrated by their decision at the same time. That came up on our show when our co-host Kristen shared that her financial advisor was leaving the business to spend more time with his growing children.
She respected his decision. She also liked working with him. After roughly a decade together, she faced a question many investors eventually ask: Should I stay with the firm or find someone else?
When your financial advisor leaves, clarify who will handle your accounts, meet the proposed replacement, and compare their services, communication, and costs with your current needs. Staying or moving should be an informed decision.
Do you have to leave when your advisor does?
An advisor’s departure is a reason to review the relationship. It does not automatically tell you which choice is right.
I would start by asking the firm what happens next. Who becomes your main contact? Are there decisions or deadlines that need attention? What changes, if any, about your service?
Then meet the person who would be working with you. Familiarity with the firm can be useful, but I want you to understand the individual responsible for helping you move forward.
What should your next advisor understand about retirement?
As retirement approaches, your questions often change. You may still care about investment growth, while also wondering how your savings will support everyday life after your paycheck stops.
I want you to ask whether the advisor can help you evaluate retirement income, Social Security decisions, healthcare coverage, and the role of taxes in your plan. Ask what they handle directly and where they coordinate with other professionals.
One question I particularly like is: “What would a written retirement plan look like for someone in my situation?”
The answer should help you understand the work you would receive. Your age alone will not tell you whether an advisor is a good fit. Look at their relevant experience, process, and ability to explain recommendations clearly.
Should every professional work in the same office?
People sometimes ask why Legacy Retirement Group doesn't have an attorney or accounting firm in our practice. As we’ve explained on the show, we have chosen to work with outside professionals who operate their own practices.
I value the separate perspectives those relationships can bring. We can focus on our responsibilities while attorneys and tax professionals bring their expertise to theirs.
That is our approach. When evaluating any firm, ask how coordination actually works. Who communicates with whom? What requires your permission? Who is responsible for following through? Sharing an address doesn't answer those questions on its own.
How should you compare advisor fees?
I look for value, and I want the cost to be clear. Ask what you will pay, what services are included, and what may cost extra. If a fee is quoted as a percentage, ask what it means in dollars for your account.
Then compare that cost with the service you need and expect to receive. A price tells you much more when you understand the work behind it.
Ask about communication, too. How often will you meet? Who answers questions between reviews? How will recommendations and changes be explained?
What if you are unsure when you want to retire?
I recently spoke with a gentleman who was 63 and thought he might retire at 65. He wasn't sure he would want to stop working then.
I told him our planning goal could be to prepare for that possibility. We would need to evaluate whether his resources and circumstances could support it, then revisit the plan as things changed.
That distinction matters. Choosing an advisor is also about finding someone who can help you evaluate your choices. You do not need every answer on the first day, but you should understand how the advisor will help you work toward them.
If an advisor change has you reconsidering what you need for retirement, you can reach our team atLegacyRetirementGroup.com to talk through your questions.