Switching financial professionals can feel awkward, but it’s often the right move. If your advisor isn’t meeting your needs and, most importantly, they are not providing the value for what you are paying, it might be time to explore other options. Below is a roadmap plus tips to help go through the switch with minimal friction.
1. Decide why you want to switch
Before starting the process, be clear on what’s missing. Common red flags include:
- Poor communication (you rarely hear from them)
- Lack of transparency about fees or hidden costs
- The advisor no longer fits your needs (e.g. your finances are more complex or they do not specialize in your situation of life)
- Loss of trust or ethical concerns
Having a solid rationale also helps you explain the move when speaking to your current advisor or new one.
2. Pick a new financial professional
You can’t really switch until you know where you’re going. When evaluating candidates:
- Confirm they act as a fiduciary (legally obligated to put your interests first)
- Ask about credentials, experience, and track record
- Understand their fee structure and how they’re compensated
- Talk about your goals, risk tolerance, and communication preferences
Once you feel confident, you’ll proceed to the transition.
Related: Questions to ask a potential Financial Advisor & my responses
4. Notify the old advisor (politely, but firmly)
You don’t owe a long explanation, and it is actually not required to contact anyone at the previous firm, but it’s good to be clear and professional. A simple written notice stating your intention to terminate services by a certain date is enough.
If it’s feasible, mention you’re working with a new advisor who will coordinate the transition. The new advisor handles almost all of the logistics and transition.
5. Transfer the accounts & assets
This is where the bulk of the work happens. Key points:
- Use the ACATS (Automated Customer Account Transfer Service) or equivalent system. Transfers generally take 1–3 weeks for most investment accounts. All that is required from you is a signature.
- Some investments (illiquid, private, proprietary) may take longer or not be transferable; check case by case
- Collaborate (via your new advisor) to fill in all necessary transfer and authorization forms
- Monitor the process: make sure assets move correctly, that no items are left behind
6. Confirm and clean up
After transfers complete:
- Verify all holdings are correct
- Double-check cost bases, tax lots, and transaction history
7. Start the new relationship right
To get the most from the change:
- Have a detailed onboarding discussion: lay out your goals, preferences, and expectations
- Ask your new advisor to walk you through their plan or strategy
- Agree on meeting frequency, reporting cadence, and communication standards
- Set short-term review points to catch any misalignments early
Final Thoughts
At the end of the day, changing financial professionals isn’t complicated. It can feel uncomfortable, but staying with the wrong one costs more than the hassle of moving on.
You deserve advice that’s aligned with your values and future plans. If you’ve been thinking about making a change, start with a conversation. The right fit can make a real difference in how you manage and grow your wealth.
