You Might Need a New Financial Advisor if …

With a nod toward Mr. Foxworthy, and full recognition that this list lacks any humor whatsoever: You might need a new Financial Advisor if:

  1. Individual stocks comprise a large percentage of your portfolio.
  2. The fees on the mutual funds you own average more than 30 basis points (3/10 of 1%).
  3. All of your mutual funds are run by the same company (e.g., American Funds or Vanguard).
  4. Each of your accounts – taxable and/or qualified – has essentially the same stock/bond allocation.
  5. The annual fee charged by your Advisor is more than the fee(s) charged by your fund manager(s).
  6. Your Advisor isn’t a full-time fiduciary.
  7. There is frequent trading in your account.
  8. Your portfolio “tilts” toward growth stocks, rather than value stocks.
  9. You don’t have an Investment Policy Statement.
  10. There isn’t a clear link between your financial plan and your investment strategy.
  11. Your Advisor sold you a whole-life insurance policy or a variable annuity.
  12. You are invested in things you don’t understand (like hedge funds).
  13. You don’t know how your portfolio’s performance compares to its benchmark.
  14. You have no idea what a “Target Allocation” is.
  15. Your Advisor hasn’t explained to you the benefits of “Evidence-Based” Investing.