Eight Warning Signs You Need to Fire Your Financial Advisor

[Nords]

I don't use a financial advisor and I don't think I ever will, but if I wanted one then I'd hire Jeff Rose. He's an independent CFP and one of the top personal-finance bloggers. Nice guy, too.

Here's the headers of the list:
8 Warning Signs You Need to Fire Your Financial Advisor
1. They Still Don’t Know Your Needs
2. They Don’t Tell You How They’re Paid
3. Don’t Be Rushed Into Anything
4. They Want to Put Everything in One Investment
5. They Don’t Inform You of Changes
6. Legitimate Monthly Statements
7. Advisor Wants a Check Directly Made out to Him/Her
8. They Don’t Return Your Phone Call or Emails

... but it's worth reading the whole post for the horror stories... including the counterfeit version of #6.

[flyfishnevada]

What if you are your own financial advisory and most of those apply?

Those sound like good reasons to fire just about anyone you've hired, if not have them arrested for fraud for #2, 5, 6 or 7.

[frayne]

Good article and pretty much common sense for those around here but still amazed at how many people fail to do their due diligence when it come to a FA.

[obgyn65]

I have always managed my money on my own, no need for FA. I have only one contact at Edward Jones whose role is only to buy CDs for me.

[jerome len]

Here is my question: I'm my own financial advisor and have done well. I only count what I make after fees and taxes...........but, what happens when I get older and I'm not capable of managing my money? Who do I trust as a financial advisor then? And, who do I trust to handle my wife's trust after I'm gone? Those are my worries and I would love to hear what others are doing or plan to do.

[gerntz]

Quote:

Originally Posted by jerome len Here is my question: I'm my own financial advisor and have done well. I only count what I make after fees and taxes...........but, what happens when I get older and I'm not capable of managing my money? Who do I trust as a financial advisor then? And, who do I trust to handle my wife's trust after I'm gone? Those are my worries and I would love to hear what others are doing or plan to do.

I have a financial that I trust for those very reasons - among others.

[Nords]

Quote:

Originally Posted by jerome len Here is my question: I'm my own financial advisor and have done well. I only count what I make after fees and taxes...........but, what happens when I get older and I'm not capable of managing my money? Who do I trust as a financial advisor then? And, who do I trust to handle my wife's trust after I'm gone? Those are my worries and I would love to hear what others are doing or plan to do.

I'd say that the only choices are your kids (whom you trust) or a professional trust company... which will still charge 1% but which will at least be legally obligated to do a mediocre job.

Otherwise, a better answer might be the autopilot afforded by an annuity and a dividend-producing portfolio that never really needs to be rebalanced, let alone traded managed. One advantage of the annuity is that you can only "lose" the money you have in your checking account, and there'll be another deposit into it next month.