Shady Business
Whenever something seemingly shady is requested of you, it is time to move on right now. It may not even seem exactly shady at the time, but more out of the norm. This can include requesting you to wire money, send the money manager a blank check, request power of attorney or really anything else that just doesn’t seem right to you. Everyone has gut feelings. You need to listen to yours.
Not Registered
This is something you should do ahead of time, but if you didn’t, make sure to see if your money manager is registered with the necessary government authorities. You can check with the United States Securities and Exchange Commission and within your particular state to see if they are registered anywhere. If not, the money manager likely is just some person who is trying to pass themselves off without having the experience, education or credentials. It means it is time to move on.
Not Forthcoming
It is your money, which means you should be able to receive all the necessary insights you want. Some people don’t really care all that much about what is going on, while others want updates on every trade performed. If your advisor is secretive and doesn’t want to go into certain details, it is time to fire them. They need to answer any question you have until you are satisfied, no matter how many questions you have. That is what you are paying them to do.
Sales Pitch
When talking with your money manager, does it seem like he or she is trying to sell you on something? If it is, it really isn’t a good look and you need to consider going somewhere else. Money managers are often paid to invest into certain fields, so they are not promoting something in your best interest, but in their own best interest. If a money manager’s interest in your money is only to net him/herself more money, you need to find a new manager.
Lack of Experience
There are some industries where people can learn on the job and a few mistakes here or there isn’t that big of a deal. However, when dealing with your money and your investments, that is not something you want a person with a lack of experience dealing with. You need them to know what they are doing and primed in the kind of financial investing you are seeking. Whether investing for a child’s college fund or for your retirement, they need to know what they are doing. If they don’t have the experience, it is time to move elsewhere.
Goals are Not Aligning
Your money manager likely has goals for your money, as do you. The two of you need to see eye to eye. If you don’t, there is just creative differences and you need to move along. It’s not that the person is necessarily a bad money manager, but you need to be able to sit there and work with the individual. If you don’t see eye to eye, it just isn’t going to work.
Risk Explanation
With every kind of investment there is always going to be some kind of risk. Your financial adviser knows it, but you probably don’t. They need to explain to you the risks of moving forward with a particular form of investment. If they don’t, it puts your own money at risk without you giving the go ahead. They should never do that and if they do, it is time to take your money and go elsewhere.
Poor Compensation
When working out the fine details with your money manager, you need to learn how they are paid. Some are commission based and will receive a bonus from their company based on the amount of money it brings in. Always ask how they are paid when signing up. If you haven’t yet, you need to ask them now. You might be surprised as to how much money you’re missing out on or how much money they are taking away from you.
Hard to Get in Touch With
Your money manager should be easy to contact. Sure, they are busy individuals which means they won’t always be able to talk for hours on end, but they should at least return your calls or emails. If they are hard to get in touch with it means they don’t have the time for you. This also means you need to find a different manager who does.
You Don’t Understand What They Say
Every industry has a bunch of terms outsiders simply will never understand. If you walked on a film set you’d have no clue what someone was telling the grip and lighting crew without term knowledge. The same is true with financials. If you can’t understand what they are saying and they won’t speak in clear terms, it is time to fire them and move on.
Off Track
A big reason why you need to fire your money manager is if you are off track financially. If these issues progress it is time to find someone who can deliver.
You Don’t Trust Them
You need to trust them. Sometimes there’s just a feeling you don’t like. It might be nothing but a gut feeling, but often times there is a reason behind it. Always go with your gut and go with someone you trust.
Change
Change happens in life. Maybe you’re getting a divorce or moving away. You don’t need to stay with your current money manager. Change all the way around might be the best option for you.