Wealth managers are there to seek counsel and guidance with your investment funds. Like a critical friend, they are there to help with strategy and suggest solutions to any financial queries. But what if your wealth manager is not helping you meet your financial goals? What are your options?

Changing your wealth manager can seem like an overwhelming process. It definitely can be. But if you know what you should look out for – you won’t have a single problem. If you’re reading this article, you’re in the right place because we will share some of the best tips from Alex MacEwan, founder of The Wealth Consultant.

Why Should You Change Your Wealth Manager?

Do you know that feeling when you think that nothing can improve the relationship for better and that it’s the right time to move on?

Many people have been feeling this about their wealth managers – yet not many take action to actually change them.

Why?

Because everyone is afraid of the “overwhelming” process that can occur as a result.

Perhaps your wealth manager isn’t listening to you, brushes off your requests, and only calls you when they should take action on your portfolio?  Or maybe they are the friendliest person out there – and yet your financial situation is not be getting better. If their advice isn’t changing and you aren’t seeing progress – it’s another good time to think about looking elsewhere.

When is the Best Time to Change a Wealth Manager?

No matter how badly you want to make change wealth managers,  you should play it smart. There could be timing issues if you switch mid-year. Also, you might end up occurring prorated fees if your wealth manager is charging you annually and you leave before the end of the year. 

Therefore, think long-term and always think ahead. In most cases, this will even mean that you will have to go and read the fine print of your contract with your wealth manager to gain the best understanding. Since every contract and its terms will be slightly different – this is the best way to determine the best time for you to get a new financial advisor.

How to Efficiently Change Wealth Manager to Meet Your Financial Goals

  1. Read the Fine Print

Reading the fine print of your management contract isn’t fun, but it’s the only way to gain the best understanding of your own situation.

If you aren’t sure how to find the correct time to leave your advisor – it’s highly recommended to focus on the termination part of the fine print. Are you charged annually? Is there a termination fee if you leave before the end of the year?

These details can tell you what the best time is to change your wealth manager without experiencing any financial losses.

  1. Think of the Service You Want

By now, you probably know why you want to leave your wealth manager. These reasons are helpful because when you think about them, you can know what to look out for in a new professional.

It is recommended to figure out and write down all flaws you’ve experienced, but also what type of services you require. You shouldn’t forget about the good things your current wealth manager did for you, and list them as well, since you want your new wealth manager to match these services too.

  1. Collect Your Investment Records

If you are leaving your current wealth manager, he or she is obliged by law to transfer the historical records of your portfolio to your new wealth manager. Before you even ask for the transfer, you should ask for a copy of the transaction history so you are ready to make the transfer.

Funds can also be transferred quickly and simply through automated systems like ACATS (automated customer account transfer service). In some cases, these automated transfer services may mean you do not have to let your existing provider know that you are leaving.

  1. Get Professional Help

Other than knowing what you want from your new wealth manager and collecting your previous investment records – you won’t have to do any “dirty” work yourself.

How come?

Wealth Consultants can provide you with professional help and a free digital introduction to introduce you to three different wealth managers, that match your requirements.

Professionals will handle the transfer for you and ensure that you aren’t missing out on anything. They will also deal with organising technicalities such as fund requests, initializing investment transfers, and more.

  1. Be Ready for New Relationship

Once you have found a new wealth manager, you should go over the information you’ve received and the terms you’ve set with your new wealth manager. But what should you be looking out for?

Check to see if there are any expected services missing in your contract, as this is the right time to make additional changes if needed. Also, ask your new wealth manager about any sales charges you might be expecting so there are no hidden costs.

 

At this point, you’re pretty much set with your new wealth manager. However, double checking things and learning how they work is highly recommended to ensure you are always getting the best financial advice and service.  

Posted by Kathryn Hall