Read this before breaking up with your financial adviso

Everyone has a financial counsellor in some capacity, whether it's an insurance agent or a mutual fund distributor. So, when should you end your relationship with your financial advisor? Let us investigate. 

Some partnerships continue forever, while others must come to an end at some point. The same may be stated for a financial advisor. Some life circumstances may indicate that you might consider terminating your relationship with your financial advisor.

Change in advice

Personal finance, like your life, is inherently dynamic. As a result, when a person's living circumstance changes, the financial adviser's previous advice becomes obsolete. Rather, it is time for a review, and a financial adviser is expected to recommend modifications, if any, in response to changes in your current situation. If this isn't the case, you should consider parting ways with your financial advisor and hiring someone else.

Communication

To keep track of what's going on with your personal finances, your financial adviser should speak with you at least once a quarter, if not more frequently. This enables you to understand where you are today and whether any actions are required on your part.

Say your financial advisor had recommended a product, but it was no longer the best choice for you, communication is the most crucial aspect. At that point, it is the financial advisor's responsibility to interact with you and provide appropriate advice. If your advisor does not communicate with you, you should consider ending your relationship with him/her.

Fees 

Fees are important because you need to be certain that the fees imposed by your financial advisor are reasonable. Before onboarding you, your financial advisor must explain the cost structure to you.

There are financial advisors in the market that sell themselves by offering free financial advice. However, there is a catch. There are no freebies in this world. Your financial advisor either has hidden fees or receives commissions or incentives from product companies.

There are some financial advisors that charge upfront fees but cannot explain them. So, if your financial advisor falls under this category, it's time to walk away.