When (and How) to Switch Financial Advisors

Poor performance, high fees, strained communication and stagnant advice are among the reasons to look for a new advisor. Here's how to switch advisors if you need to.

A relationship with an advisor should not be something you set and forget. It's always OK (and even encouraged) to routinely assess how you feel about the service you're receiving. If you feel frustrated by bad communication, ignored questions or opaque fees, it could mean the relationship has run its course.

We know the fear of breaking up with your advisor — or the effort required to find someone new — can make you second-guess your decision or avoid taking action. But the process doesn’t have to be painful. Here are some signals to look out for — and a guide for making the switch if you decide to do so.

Signs it might be time to change financial advisors

1. You’re afraid to call them

If you’re having trouble picking up the phone to ask a financial question, that’s a bad sign. “If you’re not calling because you don’t think your concerns are important, or you feel like, ‘they’re too busy — I don’t want to bother them,’ those are big red flags,” says Patricia Jennerjohn, a certified financial planner with Focused Finances in Oakland, California.

Ask yourself, why are you afraid to call? If past calls weren’t promptly returned or the conversation felt rushed once you connected, then it may be time to examine whether this is working out. “Some may feel like they are small potatoes compared to their advisor’s other [wealthier] clients … but you shouldn’t feel that’s a problem,” Jennerjohn adds. “This is all the money you have in the world, and that deserves full attention.”

2. Your financial advisor doesn’t listen to you

Jennerjohn described a client who was two-timing with her because she couldn't work up the courage to break with her other financial advisor. “My client says, ‘I make requests and suggestions, but he just brushes me off,’” she says.

Often, clients can be awed by a fancy suit and office and a barrage of smart-sounding advice that goes right over their heads. “It’s kind of like, ‘don’t question the doctor, just take the prescription,’” Jennerjohn says. “They feel intimidated to stay with this person.”

» What should you expect? Learn about what financial advisors do

3. Your financial situation is changing, but the advice isn't

Similar to not hearing you is not changing financial tack when a major life event is on the horizon, such as retirement. Some advisors get stuck in the “accumulation phase,” rather than preparing for the time when your investment savings replace a steady paycheck, says Celia Brugge, a certified financial planner with Dogwood Financial Planning in Memphis, Tennessee.

“You’ve been saving all this money, but it’s in different pots of money — some may be in taxable accounts, maybe you’re remarried and you’ve got his-and-her money,” Brugge says. “How do you decide what to take out, when, and in what order should the accounts be used? Those become the big questions now.”

4. Your financial advisor only calls to trade

Another red flag: You only hear from your advisor when they want to execute a buy or sell order on your portfolio. That may be a sign your advisor is only interested in the fees they may pocket by trading on your account, Jennerjohn says.

It’s important to understand how your current or future advisor makes money. Some make money by receiving a commission on products they sell; others charge clients a percentage of the assets they manage. Many clients prefer a fee-only advisor who charges an hourly rate or a flat fee for services and isn’t inclined to steer you toward an investment for which they'll earn a commission.

If you feel your advisor is only looking to make a quick buck off you, it may be time to say goodbye.

5. You’re overpaying for services

High fees can seriously impact your returns, and so no matter how much you like your advisor, you should periodically review their fees alongside the services you expect to use in the near future.

Nerdy Perspective

How to know if you're overpaying

"Typically, financial advisors charge around 1% of your assets under management (AUM). For example, a 1% AUM fee on a $500,000 portfolio means you're paying roughly $5,000 per year in advisory fees. From my experience reviewing advisors, it’s reasonable to expect that fee should cover investment management and comprehensive financial planning with an advisor you meet with at least once a year. You could expect to pay more if you have advanced planning needs or want integrated financial services (like tax filing) or highly customized investment management. But if you’re a low-maintenance client, and you’re paying 1% or more, you may be overpaying."

Taryn Phaneuf

Lead Writer, Investing

How to switch financial advisors

Find a new advisor

Don’t jump ship without a plan. Choosing a new advisor starts with getting specific about what type of relationship or set of services you need. You know what irks you about your current advisor, so let that inform your search for someone better.

If you want someone with a more hands-on approach, look for a firm that proactively schedules several meetings throughout the year or assigns you a dedicated advisor (instead of a rotating team).
If you want someone who offers deeper guidance and talks about more than just how your investments are performing, look for an advisor with demonstrable planning expertise, such as a certified financial planner (CFP).
If you want lower fees, look for an advisor with a smaller set of services you’ll actually use. Firms with in-house teams that do advanced planning, estate planning and/or tax filing might be overkill.

Understanding whether your advisor is a fiduciary — meaning they are legally required to act in your best interest — can help you evaluate the advice you receive. A fee-only advisor gets paid by clients, and not through commissions for selling or recommending particular financial products. We also recommend working with an advisor holding verifiable credentials. (The term “financial advisor” isn’t regulated, and professional credentials can help you understand an advisor’s training and ethical standards.)

» Ready to find someone new? Compare the best financial advisors

Check your old advisor’s contract for fees

Before you cut ties, make sure you understand the financial ramifications of the breakup. A great place to start is checking your old advisor’s contract to see if there is a termination or transfer fee so you know if and how much you’ll need to pay. There also may be additional costs or tax considerations if you are moving assets from funds managed directly by your old advisor’s company. Your new advisor can be a great resource in walking you through the fine print.

Additionally, both your old firm and the new firm must be involved in the actual transfer of your assets. The U.S. Securities and Exchange Commission suggests that you keep on top of communications between both parties to ensure that the process — which includes the submission of a Transfer Instruction Form (TIF) — is promptly and accurately completed.

Inform your current advisor

Before you transfer your assets, write an email or letter telling your current firm that you’re moving on. Whether you feel worried about what to say or excited about the chance to let ‘em have it, the advice is the same: Keep your email brief, clear and courteous — this really isn’t the time to air your grievances, and you don’t need to justify your decision.

Jennerjohn suggests focusing instead on your own growth as a general reason for making the change, rather than blaming your advisor (even if it’s warranted). If you end up needing assistance with transfers or paperwork, you’ll feel better asking if you know you kept things professional. It could be as simple as copying the example below.

Need help drafting your farewell? Try this email script »

Hi [advisor’s name],

I’m writing to inform you that I’ve decided to move on to another financial advisor. My financial needs have changed, and I believe it’s time to find a better fit for where I am now.

Thank you for your attention and guidance over the years. With your help, I was able to [insert a tangible benefit you received from your advisor]. I wish you the best. I’d appreciate anything you can do to make the transition smooth. To that end, please let me know if there’s anything you need from me.

Best,

[Your name]

It’s possible your advisor will try to convince you to stay, says Jennerjohn. It’s also possible you won’t even hear a response. “Ninety-nine percent of the time you’ll get, ‘It was wonderful working with you,’” she says. It could help to practice what you’d say if they do offer incentives to keep your business. But remember: If they could’ve offered better service all along, don’t you wonder why they didn’t? Don’t get stuck twice.

Download your records and paperwork

Make sure you've downloaded and requested any transactions, paperwork or contracts that you may need to reference in the future. You may be able to access these via a portal if your firm has one, or you may need to request them directly via email or phone. Make sure to review these records for accuracy. This is critical because you'll need to have correct statements to reference for tax-filing purposes and in case you are ever audited by the IRS.

Article sources

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1. U.S. Securities and Exchange Commission. Transferring Your Brokerage Account. Accessed Jun 18, 2026.

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