When Should You Fire Your Advisor (Or Yourself)?

It’s time to have that awkward conversation.

Your retirement might depend on it.

2022 has been a rough year.  2023 might not be much better.

You cannot control what the market gives. But there is one important decision you have control over.

Can you still trust the professionals who are managing your money?  Ask them these tough questions:

    1. What did you do to cushion my gains from a market pullback?

      It seemed easy to “fall in love” with the bull market.

      Yet 2022 has been a bit different.  Not only were stocks expensive, but bonds also were overvalued.  Neither did a good job of protecting your nest egg from falling markets.

      Most advisors were scripted to tout “buy and hold” and not “think outside the box”, be it traditional stocks and bonds or being wed to too many mutual funds.

      If your nest egg fell like the stock market (regardless of how many investments you had), then your investments are not diversified.  Having “too many eggs in one basket” can damage your family’s future.

    2. Why am I paying so much tax even though my nest egg has declined?

      Too many mutual funds in a down market might be a double whammy. Mutual funds can decline in price, yet pay out capital gains that make you pay more in taxes. (Remember 2008.)

      It is not about how much money you make; it’s about how much money you keep.

    3.  Does the person managing my money know who I am (and do they really care)?

      Do they know you don’t have forever to wait for your money to bounce back? Do they call to give you ideas before problems arise in your family?

      Or is your advisor simply a “stock jockey” who ignores the big picture of your family’s needs?

      Does your advisor give you ideas on how to lower your taxes and care for yourself and your heirs? Does your advisor care enough about you to be honest about the challenges ahead?

Don’t be afraid.  Open your statements, review them, and ask your advisor (or yourself) the tough questions.  Hold them accountable.  Accountability can help you have a successful retirement.

If they are not giving you answers that satisfy, it might be time to consider a change. Don’t fall in love with certain investments or advisors. Do what is best for your family.

Give us a call if you want some straight answers and ideas to help.

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