In November, I wrote about what to expect from a financial planner. Now that I have drawn to seek a complete ? Certified Financial Planner, you probably are wondering "How do I hire a financial planner and focus my current Advisor?"
Set your expectations
Before your consultant and planner of your next rental, do a little homework. Write everything you like and don't like your current consultant. Then, write everything you expect from a new Planner. From this list, should be able to come up with some great interview questions. For example, you are dissatisfied with the lack of contact from your current Advisor; you expect a call/email/meeting each quarter; the question is "how often do you typically call/email and meet with customers?"
Interview with potential new designers
Now that you know what you want, ask around for referrals and interview with 2-3 + planners. You want someone who meets your expectations, you can communicate with ease, and who you can trust. Be leery of intrusive consultants/designers who tout the performance and the "big customer" to impress and talk over your head trying to sound smart and professional – if they sound like a car salesman, move! It's easy being influenced by great speeches, but try to imagine how the potential planner might manage questions and calls. You will be comfortable asking the person questions? He or she spend time addressing your concerns? Your planner should listen to you, to address questions and concerns so that you understand and of course, demonstrate competence. It's your money, be picky and find a person of that trust.
Yikes, as you fire your current consultant?
Relax, you don't have to actually fire your advisor! The new Planner will set up your new account, you sign documents of transfer and get a recent statement from you. He or she will initiate and manage the transfer, which takes approximately 2 weeks. You cannot call or notify your advisor prior; Although, your Advisor may notice that your account has been moved. If you call your advisor prior, you don't have to answer the call; the signature for the work of the Office shall authorize the transfer. If you engage in a conversation, you may be asked why you are moving your account. You don't have to offer an explanation. Were dissatisfied and now they're taking control of hiring someone that best meets your expectations.
You will incur taxes or penalties by transferring your account?
Typically, companies move is, so you don't have to sell everything and realize gains or losses. Some owners of funds must be cleared for transfer. If it is a tax deferred account (for example, an IRA), to avoid penalties and tax transfer to such an account. You may have decided to convert the rollover your IRA or a ROTH 401 (k); and, in this case, you will have to pay taxes, but no penalty. Make sure you're clear before the transfer, so you have no surprises.
You should never stay with an Advisor/planner who are unsatisfied. Take charge. Is your money and your financial future!
Gelasia Steed, CFP ?
FT. Worth, TX