Don’t Call Saul – Three Reasons Not To Use Your Parents’ Financial Advisor

You might think that hiring the same financial advisor that your parents have worked with for years would make sense. After all, the advisor knows your family and has been trusted by your parents (not to mention cousins, aunts, and family friends) for years. However, there are multiple reasons why this may be a bad idea. Granted, these are sweeping generalizations that don’t apply to every advisor, but in my 20 years of experience in the industry, I’ve found they apply far more often than not.

1. They simply aren’t engaged anymore: As advisors progress in their career, they often delegate some (or all) of the responsibilities to their juniors or associates. The advisor becomes more of a relationship manager than a financial advisor, spending an increasing amount of time on the golf course and less time in the office. This means that the person your parents hired and worked with isn’t doing the research and advising anymore.

2. They don’t keep up with new trends, technologies and opportunities: Most advisors have done things a certain way forever, and they believe that’s what works. While it may have been the best path at one time, the world and markets are always changing. Advisors need to be constantly educating themselves as to what’s happening now—not just relying on what worked 30 years ago. It’s hard to teach an old dog new tricks; sometimes, a new approach is required.