Financial advisers can help get nest eggs in order and keep people on course for a healthy retirement.Households that use financial advisers are three times as likely as non-advised households to have $250,000 or more in retirement savings, according to a 2014 survey by LIMRA LOMA Secure Retirement Institute.But that doesn't mean that every adviser is a perfect fit with everyone's preferences, communication needs, and lifestyle. In fact, here are a few indications that it may be time to find another adviser.Your adviser asks you to do something shadyIf your adviser asks you to wire money, sign a blank form or check, seeks full power of attorney or asks for a check made out to someone other than the account's custodian, it's time to move your money to another financial adviser."An adviser should never take custody of your investments if they have the ability to make investment decisions for you," said Susan Fulton, founder of FBB Capital Partners, an independent wealth management firm in Bethesda, Maryland.If you see signs of corruption, transfer your money immediately.The firm isn't registered with governing authoritiesAsk if your adviser is a registered investment adviserand the official name of his or her registered firm. Then check either through the US Securities and Exchange Commission, the state (if the adviser is small), or, if the adviser is commission-based, through the Financial Industry Regulatory Authority's free tool for checking brokers. Also, check if your adviser has a series of disciplinary actions.Your adviser doesn't return calls or emails"If you're waiting days or weeks to hear back from your adviser, you deserve better," says Paul Jacobs, chief investment officer of Palisades Hudson Financial Group in Atlanta. "A lack of responsiveness can be a symptom of bigger problems, including a lack of organization skills or a lack of empathy for clients."This doesn't mean that you hound your adviser after every quarterly earnings report. But if you feel your adviser is only reactive to your calls and isn't thinking proactively, you may also want to look elsewhere, says Jennifer Acuff, a principal adviser at TrueWealthin Atlanta.You aren't happy with the compensation structureAsk if your adviser is commission-based, gets bonuses from the firm, and if the firm owns any proprietary products. In short, you need to know if the adviser makes money from what he or she sells to you. Some advisers, called fiduciaries, are mostly fee-based, compared with brokers, who slice a commission from your assets and may charge other fees. Determine your comfort zone."Asking the simple question of 'How do you get paid'' can shed light on where your adviser's loyalties are," says Mike Jurs, director of Financial Engines in Sunnyvale, California. "Don't worryyou're not being rude. It's almost expected. After all, it's your money, and you should be sure that your adviser has your best interests at heart."Your adviser doesn't explain riskThis is not a one-size-fits-all business. There should be a sit-down session before money changes hands to discuss your financial goals, what risks come with different investments, and what fees you'll be paying. If don't feel you can disclose your full financial picture, it's not a fit. After the initial discussion, the lines of communication should remain open."If your adviser continually gives you vague responses to your questions on risk in your portfolio and the fees you are paying, it may be time to look for an adviser that is more transparent," says John H. Foard III, senior wealth adviser for Hobart Financial Group in Charlotte, North Carolina.There is a mismatch of opinions and goals"If there is a difference of opinion on investment philosophy, time horizons or outlooks on risk, those may be common red flags that you should understand. If any of these situations rub you the wrong way, you must move on to a new adviser relationship," says Jerry Lombard, president of the private client group at Janney Montgomery Scott in Philadelphia.Keep in mind, however, that if you have lofty and unrealistic expectations for returns, risk and fees, it can make the adviser-client relationship choppy, Lombard says.Your adviser doesn't have experience in the area you needIf you're planning for retirement while also saving for your child's education, working with an adviser who has experience in both of these areas is important, Lombard says.You aren't being treated the way you want to be treatedTreating you like you just wouldn't understand things, or talking above your head and not listening to your goals is not OK."We recently had a consumer [who transferred to us after she] felt that her adviser was not listening to her or her investment suggestions," says Raghav Sharma at GuideVine, and investor matching service in Manhattan. "Even though she had worked with this adviser for several years, she was increasingly feeling that he had placed her in the 'little old lady' bucket and was condescending when it came to answering her questions. She did not feel heard or understood by her adviser, who treated her like a pile of assets and not an actual client."Your adviser is acting like a salesmanPromising lofty returns that can't maintain expectations usually gets an adviser firedor worse, Jacobs says. Some advisers get paid when your money shifts between investments, so the more churn they make by you shifting assets, the more money they make. The problem is that each shift usually costs you a fee.You should be skeptical if there is constant turnover in the portfolio generating massive fees, if your adviser is always pushing high-fee solutions, or always selling insurance products as solutions, says Rocky Lalvani, who represents clients as an enrolled agent with the IRS and financial coach in Harrisburg, Pennsylvania.And some advisers offer long contracts that tie you up for years and guarantee them an income stream, he says.Your adviser is secretiveNo topic should be off limits for discussion. Financial planner Tim Plachta of Reliant Wealth Management in Austin, Texas, recalls a client who left her previous adviser because he refused to explain what she was invested in."When she would ask him for an explanation, the only response she would get was, 'Don't worryit's invested in good stuff. It's all taken care of.'" Always ask yourself whether you can trust your adviser with your financial future.SEE ALSO:Buying my first home only took 35 days ' here's what I did to speed up the notoriously long processDON'T MISS:7 secrets the wealthy know that many people don'tJoin the conversation about this storyNOW WATCH: There is a secret US government airline that flies out of commercial airports
Click here to read full news..
