As an investor, a good relationship with your financial advisor is fundamental to getting the results you dream of. However, there may come a time when this partnership no longer aligns with your financial objectives or fails to meet your expectations. Recognising the telltale signs that it’s time to find a new investment advisor is crucial to protect your financial future.
Inconsistencies in Portfolio Performance and Reporting
One of the most glaring red flags is a lack of transparency and clarity in your portfolio’s performance reporting. If your investment advisor fails to provide comprehensive statements outlining your portfolio’s rate of return over time, it may be an indication of underlying issues. Relying solely on performance reports generated by the advisors themselves can raise concerns about accuracy and objectivity.
Additionally, when you ask questions about the construction and performance of your portfolio, you should be given clear, substantive answers that address your concerns. Your investment advisor should be able to explain their investment decisions and strategies in a way that you understand and feel comfortable with.
Stagnant Growth and Unfulfilled Potential
Despite the ebbs and flows of market cycles, if your portfolio consistently underperforms or fails to generate sustainable growth over time, it’s a cause for concern. If your wealth remains stagnant or even declines, it may be time to find a new investment advisor.
Infrequent Communication and Reactive Approach
Effective investment management requires proactive communication and regular portfolio reviews. If your advisor only reaches out when they have a product or service to sell, it could show that they are more sales-focused rather than committed to your long-term financial well-being. A trusted financial advisor should keep in touch regularly to assess your evolving needs and make necessary adjustments to your investment strategy.
Unclear Fee Structure
When it comes to the fees and compensation associated with your investment management services, transparency is key. A reputable advisor should provide a comprehensive breakdown of their fee structure, so you can clearly see the value you’re receiving.
Personal or Professional Changes
If your personal or professional circumstances change you may also need to reassess your investment advisor. For example, if you experience a significant increase in wealth, a change in marital status, or the launch of a new business venture, you might need a different level of expertise and guidance.
Similarly, if your advisor experiences a major career change, such as joining a new firm or retiring, you’ll need to consider whether their new situation aligns with your needs.
Parting ways with an investment advisor can be a difficult decision, but it’s crucial to prioritise your financial well-being. If you recognise any of these signs in your current relationship, it may be time to start exploring other options.
Take the time to research and speak to potential advisors, ensuring that they align with your goals, values, and expectations. By making an informed decision, you can set yourself on a path towards a more successful and fulfilling financial future.
Investment Services from The Bateman Group
At the Bateman Group, we’ve been providing investment and financial advice to businesses and individuals since 1967. We’re totally independent experts who review the whole market and we currently control client assets in excess of £120 million.
As one of the largest insurance broker & financial advisory firms in Warwickshire, we are also regulated by the Financial Conduct Authority. Please get in touch to speak to our experienced support team.
