The High-Net-Worth Playbook: Changing Financial Advisors With Confidence

Do you feel like your financial advisor isn’t as engaged or transparent as you’d like? Whether it’s a lack of communication, poor performance, or high fees that don’t seem justified, maybe you’ve reached a point where you realize it’s time for a change.

Switching financial advisors can feel like a disruption, especially if you’ve worked with the same person for years. You might even worry that changing your advisor feels disloyal.

But your financial future—and your family’s—comes first. It’s important to remember that making a change doesn’t have to be complicated or stressful. With the proper planning, transitioning to an advisor who truly understands your needs as a high-net-worth individual can be a smooth and worthwhile process.

At Heritage Capital LLC, we have decades of experience in Connecticut financial planning and operate as an independent, fee-only firm with no commissions or sales pressure. Led by Chief Investment Officer Paul Schatz, who has been featured on CNBC and Fox Business for market analysis, Paul is often called on for commentary on investment topics. He’s also been quoted in respected publications like The Wall Street Journal and USA Today.

This article will walk you through the process of finding and transitioning to the right advisor who understands your needs and the complexities of high-net-worth investing.

The High Net Worth Investor’s Dilemma

Your time is valuable and often spread thin across various responsibilities, such as running businesses, advancing your career, managing family relationships, and participating in charitable activities. The last thing you want is to be consumed by the stock market’s daily fluctuations. That’s why having a trustworthy, experienced financial professional is vital.

The choice can be overwhelming with most advisors offering the same services. At many firms, you may hire an advisor, but your investments are often handed off to a third-party manager you’ve never met. While this may benefit the firm’s bottom line, it doesn’t always serve you or provide the investment protection you need. Without a direct connection, the firm may mismanage your risk—taking on too much or too little—which could jeopardize your financial security.

Finding a firm that understands your unique needs and manages your assets in-house through active management can help keep your portfolio balanced, mitigating risks while protecting and growing your wealth.

Why Consider Changing Financial Advisors?

Concerns about switching advisors, disrupting long-standing relationships, or simply not knowing where to begin are common. However, staying with an advisor you’re dissatisfied with can be a costly mistake.

Here are some key reasons to reconsider your advisor:

• Lack of communication: If you’re not hearing from them regularly, it can leave you feeling disconnected.
• Poor performance: Consistently underperforming investments can erode confidence.
• High fees: Unexplained or excessive fees can make you question whether investment recommendations are truly in your best interest or simply driven by commission incentives.
• Misalignment with financial goals: As your life changes, your advisor should adjust strategies accordingly. If they don’t, trust can break down.
• Lack of transparency: Clear insight into your investments is essential. Being left in the dark can easily make one feel confused and uncertain about the future.
• Life changes: Major events like retirement, divorce, or an inheritance require specialized advice that may prompt a switch.

Addressing these concerns and knowing what to look for can make changing advisors a simple process and the best way to protect your financial future.

The High Net Worth Playbook: Transitioning With Confidence

Here’s your step-by-step playbook for making the change.

Step 1: Evaluate Your Current Situation

Before making a decision, take a closer look at your current financial advisor’s approach and results. Ask yourself:

• Is my portfolio managed with active management or passive strategies?
• Does my advisor understand my current risk tolerance?
• Am I confident that my wealth is being protected during volatile times?
• Are they addressing my tax, retirement, and estate planning needs?
• Is my advisor fee-only or commission-based, and do I fully understand how they are compensated?

If your current advisor’s strategy isn’t aligning with your goals or risk appetite, it’s time to consider a change.

Step 2: Identify the Right AIF® for You

Use the following checklist when researching potential candidates:

• Experience with high-net-worth clients
• Proven success with active investment management
• Access to comprehensive financial planning services
• A full array of investment options
• Fiduciary commitment through an AIF® designation

The Accredited Investment Fiduciary® (AIF®) Designation is a professional certification showing that an advisor acting as an investment fiduciary has met specific requirements to earn and maintain this credential. This is crucial for high-net-worth individuals seeking tailored strategies and want the benefits of active management in a volatile market.

Many people find meeting with a few advisors helpful to discuss their needs, evaluate methods, and see if strategies match your expectations.

Step 3: Making the Switch

Once you’ve found an advisor who fits your criteria, the next step is to transition your assets:

• Understand the transfer process: Ask your new advisor to explain how your assets will move, typically done through the simple ACATS system, which usually takes a few business days.
• Communicate clearly: It would be wise and considerate to notify your current advisor of your decision, but that’s a personal decision.
• Set up a communication plan: Work with your new advisor to establish regular check-ins to stay updated on your portfolio.

At Heritage, your money is managed directly by Paul Schatz, an experienced portfolio manager with the AIF® designation, rather than being handed over to a third-party money manager. Our team of fee-only financial advisors in Connecticut is dedicated to your financial success, making sure your investments are managed with care and transparency.

Heritage Capital Can Help

You’ve worked very hard to build your wealth, and while there’s no shortage of advisors eager to offer their services, not all are truly committed to your success.

If you’re ready to make the move, Heritage is here to help. We’re an award-winning personal investment management firm passionate about helping you thrive financially. 

Our team specializes in working with affluent investors to develop customized strategies aimed at protecting and growing your wealth, even in the most volatile markets.

If you have questions about active investment management—whether it’s how to protect your investments during market volatility, navigating retirement planning, or Social Security in Connecticut—schedule a complimentary, no-obligation conversation today.