What should you do if your financial advisor sells their business?

It is not uncommon for financial advisors to sell their businesses to other firms. As a client this can present a confusing situation. Should you stay with the firm your financial advisor sold to or switch to a different firm? The answer varies and depends on the situation and the firm in question.

These are a few things to consider if your financial advisor sells their business to another financial firm:

• Read all disclosures from the new firm carefully, particularly their Form CRS. The Form CRS is the Client Relationship Summary that each investment firm publishes. This is where you should find the firm’s fee structure and details as to whether they act as fiduciaries on all accounts, or if they are registered as a broker-dealer. We recommend avoiding firms that don’t list their fees clearly, and firms that don’t act as fiduciaries on all accounts.
• Look into the types of investments and financial products the new firm uses in client portfolios. If they are pushing high fee mutual funds, annuities, and other products that can come with high up-front costs, we recommend steering clear.
• Be aware of the effect inertia has on these situations. Switching financial advisors can be very easy, even though many firms can make it seem difficult; this can be a tactic to keep you from making the change.

If you have questions, or want a second opinion, give us a call. As fiduciaries on all accounts, we only provide advice that is in your best interest.

Working with One Day In July can mean lowering your investment fees, improving your portfolio performance and building a relationship based on trust and transparency with a financial advisor that understands your specific situation and goals.

We work with clients across the United States from our offices in Vermont, New Hampshire, and Pennsylvania.