18 Jul My financial planner is changing strategies. Should I stick around?

Q. I was using a financial planner from a big firm, and they have an investment committee that creates portfolios of individual stocks, and I liked this approach. Now, they are planning to change entirely to recommend specific mutual funds and ETFs instead of individual stocks. I could probably do that myself — so why should I continue to pay them a percentage of assets under management for this service? I don’t see how it would be worth it. What do you think?
— Investor

A. Great questions.

There are a few questions to ask yourself.

The first thing you need to decide is why you are working with a financial advisor and what sort of help you are looking for, said Michael Cocco, a certified financial planner with Beacon Wealth Partners in Nutley.

Do you want individual security selection? Or asset allocation and aligning your investments with your risk tolerance, goals, and objectives?

A top-notch financial advisor does a lot more than just giving investment advice, Cocco said.

“They provide comprehensive wealth management services, including monitoring your cash flow and making sure you are on track for your financial goals, investing in tax efficient ways, and also having proactive conversations with you especially during times of volatility to make sure you are keeping your emotions in check and so they don’t interfere with your long-term investment plan,” he said.

If your sole reason for using a financial advisor was stock selection and you feel confident in managing a mutual fund or ETF portfolio yourself, you might not need their services for investment selection alone, Cocco said.

“However, if you seek assistance in planning, implementing, analyzing, and monitoring your entire financial situation, a wealth management firm could be beneficial,” he said. “They offer a holistic approach to managing your finances, beyond just investment advice.”

The decision to continue with your financial planner should be based on the value they provide in managing your overall financial health, not just investment selection, he said.

“If you find that their services align with your broader financial needs, they might still be worth the investment,” Cocco said. “You may also want to seek out and interview other financial advisors and wealth management firms, to find a firm whose offerings align with what you may be seeking.”

Email your questions to Ask@NJMoneyHelp.com.

This story was originally published in July 2025.

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.