02 Mar Should I end my relationship with my financial advisor?

Q. For two years, I’ve used a financial advisor from a big firm who doesn’t get back to me when I ask a question. We do an annual review also. Months ago I asked him a two-part question about wanting to start a Roth IRA for my 10-year old nephew and also about my own Roth. Do I need to complain to the corporate office and ask for a new advisor? I think I signed a four- or five-year contract with them when I signed up.
— Still working

A. Sorry to hear about your experience with your advisor.

Lack of communication is one of the most common reasons why clients change financial advisors.

If you are unhappy with this, you may want to discuss it with him and if you are unsatisfied with his response, you may want to consider changing advisors, said Deva Panambur, a fee-only planner with Sarsi, LLC in West New York and an adjunct professor of personal finance at Montclair State University.

“Financial advisors’ response time varies depending upon several factors including the time of the year or events happening in the financial markets,” Panambur said. “In any case, taking several months to get back to you seems extreme.”

He called your multi-year contract surprising.

“Some advisors charge a termination fee to end a relationship, however, it is a violation of the advisor’s fiduciary duty to impose restrictions or charge fees that make the client reluctant to terminate the relationship,” he said. “It could also run foul of industry regulations.”

You should check the advisory contract you signed and the advisor’s regulatory documents, such as Form ADV, to confirm the termination policy of the advisor, he said, noting that many advisors do not charge any additional fee for termination.

Hiring the right financial advisor is a very important factor that can contribute to the success of your financial life.

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This story was originally published on March 3, 2021.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.