[Veronica]

Hello! Need some advice. I have a financial planner and I want to move everything to my own account and manage it myself (basically a set it and forget it mentality with basic investments).

I have a Roth contributory IRA and a contributory IRA.

It’s with Charles Schwab and I have an app to see everything. What’s the best move?

[Adam]

You can easily leave it at Schwab and just let them know to switch it away from the financial advisor. Vanguard and Fidelity are also good options.

The biggest thing would be getting knowledgeable about how to manage things on your own either by doing a lot of research on your own or talking to an advice-only planner to get you set up with a solid foundation to build from.

Places mentioned already are good places to start depending on if you want an hourly service or more of an ongoing service model.

[Lisa]

I just did this, also. With Schwab. Yes, terminated the relationship with the planner.

They separated themselves from my account.

[Cody]

Why and how to break up with your financial advisor:
1. Identify the reasons for breaking up, including:
– A lack of communication

– Overcharging and underserving
– Conflicts of interest

– Not comprehensive beyond investments
– You want to do it yourself

2. Create a game plan for how you will manage your financial and investment planning moving forward.

Where will you keep your investments? Same or different custodian?
If you’re hiring a new advisor, determine how you’re going to set expectations and avoid similar issues.

3. Review your client agreement’s termination clause, with instructions for ending the formal relationship.

This often involves either party giving written notice.
4. Export CSV files and PDFs of your current portfolio positions, transactions, cost basis, and statements.

5. Determine how you will communicate the decision (in writing).
Simply thank them, briefly tell them your termination plan (no details necessary), and thank them again for ensuring a smooth transfer of assets.

Also, include a request to stop all trading.

If you’re one of their “A” clients (sigh), you’ll likely receive a call asking for more details and attempting to convince you (and your assets) to stay.

Keep it short, firm, and kind.
And don’t be hard on yourself. If the advisor is rude or aggressive, another reason to leave!

6. Request a transfer of assets (ACAT – Automated Customer Account Transfer), which is initiated by the NEW provider.

The new custodian or financial advisor can help you coordinate the smooth in-kind transfer of securities to ensure there are no unexpected tax consequences.

They can also identify if any proprietary securities must be liquidated before the transfer.

7. Once transferred, verify the positions against your exported record to ensure the transfer was complete with accurate cost basis information.

8. If your financial advisor charged their fees in advance (typically quarterly), ensure you receive a pro-rata refund.

BONUS: If you want to manage your own investments but pay for personalized financial advice, consider hiring an ‘advice-only’ financial planner for a flat fee.

[Author]

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