question: After I retired in 2009, I transferred everything to a large financial services company. Fast forward to 2023 and I get a yearly call from my advisor about my account. I was never happy with my income, but after asking for his $35,000 to buy his brand new 2014 Jaguar, he wasn’t so nice anymore. I asked my advisor to provide documentation showing my earnings and fees charged for services since account opening. I have never written anything about the fees. He offered to give it to me but it’s been a few months and I still haven’t gotten anything from him. This doesn’t feel good anymore. What should I do?
answer: Yes, you have a right to know how much you are paying for financial advice. It’s probably okay to give your current advisor one last chance in case your request is ignored, but it may be time to consider another advisor. (You can use this free tool from SmartAsset to match you with a fiduciary financial advisor.)
“I don’t support staying with an advisor who doesn’t take questions or doesn’t want to answer them. Advisors are there to help you through good times and bad. If he If they don’t answer my questions, I’ll look elsewhere,” says Joe Favorito, a certified financial planner with Landmark Wealth Management.
Having a problem with your financial advisor or looking for a new one? Email picks@marketwatch.com.
Certainly, communication with your advisor is important. “It sounds like your current advisor believes your money is their own and should never be withdrawn. Asking for details about the fees you pay and the performance of your portfolio after fees is completely inappropriate. is correct and within their rights. You should also be sure to ask them to show you comparable performance benchmarks that they adhere to,” says Bruce Primeau, a certified financial planner with Summit Wealth Advocates.
When it comes to pricing, you can often tell just by looking at your statement. “If your advisor uses asset-based fees, the fees are typically assessed quarterly or monthly and appear as a line item on your statement. If your advisor is fee-based, the fees will appear on your transaction confirmation. “You can always bypass your advisor and call directly the broker-dealer who acts as the custodian of your assets, and they can give you an overview of the costs you’ve paid in fees and commissions,” says Favorito.
However, not providing pricing information can be a serious ethical violation. “If your advisor is a CFP, they are specifically obligated to a duty of loyalty, a duty of care, and a duty to follow the instructions of their clients. By not providing this information, a firm is in breach of clear ethical responsibilities and may have its designation revoked.” ” says Jim Hemphill, Certified Financial Planner at TGS Financial.
In fact, not providing information about performance and pricing is a regulatory violation. “After all this delay, I might as well file a complaint with the company. They need to follow up on the complaint and escalate it to their compliance team, and for a dollar they can fix this right away.” I’m convinced,” says Robert Perschitte, a certified financial planner at Delagify.
Also, consider contacting your advisor’s manager. If your advisor is a broker for a large company, it’s probably a branch manager. “Explain what you asked for and when, and ask when you will get the information you requested. Remember, you have a right to this information,” says Hemphill.
“Another way to find out how much you will be charged is when you visit FINRA BrokerCheck, you can view the ADV-2A brochure and see the amount you will be charged in the fees section,” says the accredited financial institution. Alonso Rodriguez Segarra, planner at Advise Financial.
get a second opinion
At the end of the day, transparency is key when it comes to financial investments and relationships with advisors. “If you’re uncomfortable with your current situation, find a new financial option that meets your needs and provides the level of service you expect,” says Ryan Heiss, a certified financial planner with Flynn Zito Capital Management. It might be worth considering an advisor.” (Advisers may be from the CFP Board, National Association of Personal Financial Advisors, or You can match with a fiduciary financial advisor using this free tool from SmartAsset.)
Pros say you might want to consider working with a paid advisor. This is in contrast to paid advisors, who are professionals who receive compensation only from clients and no other income from third parties, and who may receive commissions for promoting a particular product. It’s also worth considering his CFP in particular, since obtaining the CFP designation requires completing courses, gaining thousands of hours of work-related experience, and passing an exam. CFPs must also comply with fiduciary standards. This means that CFPs must put their clients’ best interests ahead of their own and minimize potential conflicts of interest.
That said, it’s probably a good idea to get a second opinion on your portfolio’s performance and the fees you pay. Many advisors offer free initial consultations. MarketWatch Picks has compiled a list of helpful questions to help you get to know your potential advisor.
Having a problem with your financial advisor or looking for a new one? Email picks@marketwatch.com.
