5 Questions to Ask Yourself Before Changing Financial Advisors

Choosing a financial advisor is one of the most important financial decisions you can make,

and sometimes, deciding to make a change is just as critical. Whether you're feeling uncertain about your current relationship or simply wondering if another advisor might be a better fit for your evolving needs, it’s smart to pause and reflect before making a move.

Here are five essential questions to ask yourself before switching financial advisors, so you can help ensure you’re making a suitable decision for your long-term goals.

1. Why Am I Considering a Change?

Start by getting crystal clear on your motivations. Common reasons include:

• Poor communication or responsiveness

• Lack of personalized advice

• High fees without clear value

• Changes in your financial complexity (e.g., retirement approaching, business sale, inheritance)

• Shifts in your goals that no longer align with the current advisor’s strengths

If the issue is something that could be improved with a candid conversation, it might be worth addressing first before making a move. If it's a deeper misalignment, that’s a strong signal it may be time to transition.

2. What Services Do I Actually Need?

Not all advisors offer the same scope of services. Depending on your situation, you might need:

• Investment management

• Tax-efficient strategies

• Retirement income planning

• Estate preservation planning coordination

• Business succession planning

• Wealth transfer strategies

• Personal Money Management

Before making a switch, clearly outline the services and experience you truly need now — and potentially in the next 5–10 years. This helps ensures you’re selecting a new advisor who can grow with you, not just meet today’s needs.

3. How Will the Transition Affect My Investments?

Switching advisors can sometimes trigger:

• Transaction costs (such as fees for selling certain investments)

• Tax consequences (capital gains taxes if assets are liquidated)

• Time out of the market if accounts aren’t transferred efficiently

Ask both your current advisor and any potential new advisor how they would handle the transition process. In some cases, it’s possible to do an in-kind transfer, meaning your investments move without needing to be sold first — minimizing taxes and market disruption.

4. How Do Fees and Compensation Compare?

Understanding how your advisor is paid is essential. Key structures include:

• Fee-only (percentage of assets under management, flat fees, hourly)

• Commission-based (earnings from product sales)

• Fee-based (a combination of both)

Ask for a clear breakdown of all costs, including hidden fees like mutual fund expense ratios or custodial fees. A higher fee isn't necessarily a dealbreaker if it comes with more comprehensive service — but you should feel confident that you're receiving appropriate value for what you’re paying.

5. What Is the New Advisor’s Process for Understanding My Goals?

Financial planning isn’t about pushing products — it’s about understanding your entire financial life. Before switching, ask potential advisors how they approach:

• Getting to know your goals, values, and concerns

• Building a customized financial plan

• Communicating progress and updates

• Adjusting strategies over time as your life changes

• If they have experience working with someone in your situation and did that person achieve their goals on their desired timeline. If they did not - ask why.

An advisor who leads with questions (rather than ready-made solutions) is more likely to build a strategy tailored specifically to you.

Bonus Tip: Don't Rush the Process

Making a change is a major decision. It’s okay — and even encouraged — to interview multiple advisors, ask detailed questions, and request a sample financial plan or example recommendations before committing.

Switching should feel empowering, not pressured. After all, you’re entrusting someone with your financial future — it’s worth taking the time to get it right.

Final Thoughts

If you have $500,000 to $2.5 million in investable assets, you’re at a stage where proactive, tailored advice becomes even more critical. By thoughtfully considering your reasons, needs, and expectations before changing advisors, you can make a confident transition that better supports your long-term financial goals.

Remember: You deserve an advisory relationship that feels aligned, transparent, and genuinely invested in your success.