Briefly Noted
Follow Your Advisor to a New Firm?
If your financial advisor decides to move to another firm or start his own company, should you follow? It is a scenario worth contemplating given that 12% to 13% of financial advisors change firms every year.
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The Wall Street Journal addressed this issue recently. Their suggestion was to ask several questions before making a decision on whether to follow the advisor or not. These questions included:
- Is the advisor’s business model changing?
- What’s in it for me?
- Are there other downsides to a move?
- What’s in it for the advisor?
- Are there other red flags?
It is important to remember that the decision to change firms is a business one for the advisor. The change may be made for better pay, a different working environment, more independence, better office support or a combination of factors. Though the decision impacts clients, the advisor makes the decision based on what he perceives as being best for his career and goals.
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