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Here are five signs it might be time to part ways with your financial advisor—and how to find one who truly works for you.
By definition, a fiduciary is a person who is ethically bound to act in another’s person’s best interest. This obligation helps limit conflict of interest concerns and can help make an advisor’s advice more trustworthy.If you’re working with an advisor who is not a fiduciary and constantly pushes investment products on you, they could be receiving a commission for selling those products.
If you’re experiencing this, it could be time to find a fiduciary advisor who has your best interest in mind.
What to do: Use our recommended free, no-obligation matching tool by Datalign Advisory to find a trusted financial advisor. All of the financial advisors on Datalign Advisory’s matching platform are registered investment advisors and fiduciaries.
Your financial situation is unique, and your advisor should treat it that way. If their advice feels one-size-fits-all, or you notice they’re pushing the same investments or strategies to every client, you could be missing out on tailored solutions that meet your specific needs.
What to do: Look for an advisor who takes the time to understand your goals and creates a personalized financial plan.
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Paying for financial advice is expected, but are you getting your money’s worth? If your advisor’s fees are high and you’re not seeing value in return, such as thoughtful financial planning or strong portfolio performance, it might be time to re-evaluate. Make sure you’re not overpaying for mediocre advice.
What to do: Ask for a breakdown of all fees and compare it to the services you’re receiving. If they’re charging high fees without delivering value, it’s time to move on.
Trust is the cornerstone of any advisor-client relationship. If your advisor has made unethical decisions, such as steering you toward investments that benefit them more than you, it’s a major red flag. Fiduciary advisors are legally obligated to act in your best interest—if your advisor isn’t a fiduciary, it could cost you more than just trust.
What to do: If you feel your advisor is prioritizing their commission over your financial well-being, it’s time to fire them and seek out a fiduciary advisor who is legally bound to act in your best interest.
Financial planning can be complex, but a good advisor should make sure you understand your plan and investments. If you’re left feeling confused or frustrated after meetings, or they use financial jargon to dodge your questions, it’s a sign that they might not have your best interests in mind—or worse, they don’t fully understand your plan themselves.
What to do: You deserve an advisor who explains things clearly and takes the time to ensure you’re comfortable with every decision.
If any of these signs sound familiar, it could be time to part ways with your advisor and find someone who truly works for you. But how do you find a trusted advisor who will act in your best interest?
We’ve made it easy for you. Datalign Advisory is a free tool that matches you with vetted fiduciary advisors who serve your area. These advisors are legally required to prioritize your financial goals and offer personalized advice. In just a few minutes, you can find an advisor who’s ready to help you take control of your financial future.
Don’t settle for an advisor who isn’t delivering the support and expertise you deserve. Click here to take the Datalign Advisory free quiz and get matched with a fiduciary advisor tailored to your unique needs today.
A 2019 Vanguard study found that a hypothetical advisor-directed $500K investment would grow to over $3.4 million over 25 years, while a self-managed portfolio would total $1.69 million – 50% less – over the same period. The study's advisor-managed portfolio averaged 8% annual growth over a 25-year period, compared to just 5% growth for a self-managed portfolio.
(1) Hypothetical earnings assuming 5% annualized growth of $500k portfolio versus an 8% annualized growth via a financial advisor-directed portfolio over 25 years. Hypothetical assumes a 5% net self-managed return verses a 3% added net annual value following professional financial advice.