It’s not uncommon for a young professional’s first interaction with a financial advisor to be through their parent’s advisor. However, just because that advisor was a good fit for your parents, does not necessarily mean they are a good fit for you.
So, when should you break up with your parent’s financial advisor?
- You’re not receiving personalized advice
- The relationship is investment centric
- You feel like an afterthought
- They don’t understand the challenges you face
- They’re not easily accessible
Since most advisors are compensated based on the size of a person’s investment assets, a young professional who is early in a career most likely won’t have the assets to incentivize that advisor to spend the time needed to help them make smart decisions with their money. The reality, however, is that an advisor can add a tremendous amount of value to the future financial health of a young professional before they’ve accumulated an investment portfolio large enough to be “profitable” for a traditional financial advisor.
Luckily, hundreds of advisors specialize in working with young professionals. A great place to start your search is the XY Planning Network. The XY Planning Network is a network of independent advisors who are required to put your interests before their own and strictly operate on a fee-only basis, meaning they never sell products with commissions.
Also, many advisors in the network (including myself) utilize a subscription fee for their services — meaning regardless of your age or asset size, you can work with someone who is going to provide you the attention you deserve.