By Michelle D. Bennett, AIF®, CFP®, Executive Vice President, Newport Capital Group
Financial advisors can play a crucial role in preserving and growing generational wealth. But it’s also true that some are better than others.
Many high-net-worth families reach a point where they feel the financial advisor is no longer meeting their needs. The reasons for the misalignment can vary. According to Morningstar research, 32% of people cited “quality of financial advice and service” as the reason for firing their financial advisor. Clients can also grow dissatisfied with the quality of the relationship, fees, and investment performance. (1)
However, the issues are not always about performance or communication. Oftentimes, the problem is that many financial advisors are solely focused on managing investments when families actually need comprehensive financial strategies.
That’s where a planning-focused financial advisor can make a meaningful difference, especially for families looking for a more detailed approach.
Unlike advisors who typically focus on investments alone, a planning-focused financial advisor takes a holistic approach. They build a long-term strategy to help you achieve your goals across every dimension of your financial life – including tax planning, insurance, estate planning, education funding and charitable giving. Most planners also have a Certified Financial Planner® designation, meaning they are trained to partner with other professionals (accountants, attorneys, etc.) to ensure all areas of your plan are aligned and optimized.
If something feels off in your current financial relationship, it may not be about the returns; it may be about whether you have a clear, coordinated plan.
Finding the Right Financial Advisor and Making the Transition
Whatever a family’s reasons for moving on, it’s important to take a methodical, unrushed approach when transitioning to a new financial relationship. The first step is to re-establish financial goals and expectations for a financial advisor while also detailing how your current advisor has fallen short. This will give you a list of qualities to look for in your next advisor.
I would also advise families to communicate their concerns directly to their current advisor before taking their business elsewhere. Sometimes, misunderstandings or temporary challenges can be addressed through an honest conversation and a plan to resolve the issues. Oftentimes, the issues are deep-seated and have existed for a long time, so there may not be a path forward. But it is at least worthwhile to be candid in sharing your concerns.
Once you decide to make a change, the first step is to review your existing advisor’s contract. Look for any clauses related to termination, including potential penalties or restrictions, to help you avoid unexpected costs or administrative delays.
The next step is to assemble a list of new candidates. A good place to start is by seeking referrals from trusted contacts, such as attorneys, tax professionals and close family friends. A referral is a strong lead, but it should not be treated as an automatic hire – you still need to re- search each candidate thoroughly, including their credentials, certifications and regulatory disclosures. Platforms like the Financial Industry Regulatory Authority’s (FINRA) BrokerCheck can help you verify an advisor’s background, including any disciplinary history.
Next, examining what your family needs from a financial partner is important. Are you looking for someone to help manage just your portfolio or someone who can guide you through all the complexities of your financial life? If it’s the latter, a CFP® professional with experience in holistic planning may be the right fit.
When interviewing advisors, ask about their approach to integrating all areas of financial life: investments, taxes, estate planning, insurance and more. Do they coordinate with your other professionals? Are they proactive about updating your plan as life changes? A true planning-focused advisor should offer clarity on how they will help you pursue your goals, not just manage your accounts.
Once you’ve narrowed down your options, schedule interviews with prospective advisors. Prepare questions that address their approach to wealth management, investment philosophy and experience with clients who have similar needs to your own. Understanding the depth and breadth of their advisory team is also important to give you a clear sense of how your financial plan- ning needs will be addressed.
Once you’ve chosen, your new advisor should guide you through the account setup and asset transfer process. Typically, this involves transferring investments and account documentation from your current custodian to a new one. While some transfers happen electronically, others – particularly those involving complex assets like private equity – may take longer. Maintain open communication with your former and current advisors to prevent errors or delays.
Your new financial advisor should also provide you with a reworked – or at least updated – financial plan detailing how your investment objectives are being addressed and your goals will be reached. Families deserve to have their expectations exceeded, not just met.
Making a change in your financial relationship can feel daunting. But if your current advisor only offers partial advice – focused solely on your investments without addressing taxes, legacy planning or other key aspects of wealth management – it may be time to look for an advisor who sees the whole picture.
Your long-term wealth is at stake, and a well-executed transition can ensure your family’s financial security for future generations.
The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. In addition, information presented in this presentation is believed to be factual and up to date, but Newport Capital Group, LLC does not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed.
This presentation includes forward-looking statements and opinions, including descriptions of anticipated market changes and expectations of future activity. Forward-looking statements and opinions are inherently uncertain, and actual events or results may differ materially from those reflected in the forward-looking statements. In addition, all expressions of opinion are subject to change without notice in reaction to shifting market conditions. Therefore, undue reliance should not be placed on such forward-looking statements and opinions.
The tax and estate planning information offered by Newport Capital Group is general in nature. It is provided for informational purposes only and should not be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.
Past performance is no guarantee of future performance.
Source:
1: https://www.visualcapitalist.com/sp/top-reasons-clients-fire-a-financial-advisor/
The article originally appeared in the April 24 – 30, 2025 print edition of The Two River Times.
