Your Advisor Retired Right Before You Did. Now What?

Your advisor retired and someone you have never met is now managing your retirement. Here are the eight questions to ask before you sign anything. Roughly thirty-seven percent of financial advisors are expected to retire within the next decade. When one does, a younger advisor typically buys the book of business for one to three times annual revenue. Your account gets transferred with it. The person now managing your money may not share the philosophy, the fee structure, or the planning approach of the advisor you trusted for twenty years, and nobody is required to point that out to you. If you are 62 with a few million saved and a letter just showed up announcing your advisor's retirement, this is the conversation to have before you sign a new agreement. Staying with the wrong advisor for the next twenty years can cost hundreds of thousands in unnecessary fees, tens of thousands in avoidable taxes, and a plan that quietly leaks money the whole time while everything looks fine on the statement. Brian Colvert, CFP, walks through all eight questions and why each one matters. 1. Are you a fiduciary at all times? Not on some accounts. Every account. A fiduciary is legally required to put your interest ahead of what a product pays them. 2. What is my actual all in cost in year one? Advisory fee, fund expenses, trading costs, and anything the advisor receives from a third party. One number, in writing. 3. Can I see a redacted financial plan? This tells you whether you hired a planner who addresses Social Security timing, healthcare, taxes, Roth conversions, and sequence of returns risk, or an investment allocator who hands you a pie chart. 4. How do you handle the gap years between retirement and required minimum distributions? Ask what specifically triggers a Roth conversion recommendation during that window, because that window is where a lot of tax planning either happens or does not. 5. Do you have a set meeting schedule? Annual, semi annual, quarterly, and whose job it is to make the meeting happen. If the answer is "call me anytime," that is not a schedule. 6. How did you handle the last major downturn? Not the performance. What were you telling clients while it was happening. 7. Are you the quarterback of my financial life? Meaning coordination with your CPA and your estate attorney on trusts, wills, and beneficiary designations. Or are you one player who does not talk to the others. 8. What is my exit if this does not work out? Some products, annuities in particular, carry surrender periods running seven to fifteen years. Know that before you sign, not after. A few practical notes for the meeting itself. Bring your last two statements and your most recent tax return. Ask for the fee answer in writing rather than out loud. And pay attention to how the advisor reacts to being questioned, because the reaction is often more useful than the answer. These eight questions take about thirty minutes to ask. The answers tell you whether the person across the table actually has your interests at heart, or whether they simply bought the rights to manage your money. Worth saying plainly: plenty of advisors who acquire a retiring advisor's book are excellent. The point is not to assume the worst. The point is that an inherited relationship is still a relationship you never chose, and you are allowed to interview the person who inherited you. Want to know what investing and planning for retirement actually looks like for YOU? Let's figure it out together. Schedule a free meeting with me: https://go.bonfirefinancial.com/youtube Brian Colvert, CFP® | Bonfire Financial Disclosure: https://www.bonfirefinancial.com/disc... #retirementplanning #financialadvisor #fiduciary This content is for educational purposes only and is not personalized investment, tax, or legal advice. We believe it's accurate but don't guarantee it, and it isn't a complete analysis of any topic. Viewing it creates no advisory relationship, so always consult a qualified professional about your own situation before acting. Advisory services are offered through Bonfire Financial, an SEC-registered investment adviser, only under a written agreement. Any strategies or examples are hypothetical and for illustration only. They don't reflect actual client results and don't guarantee future performance. All investing involves risk, including possible loss of principal. Comments are the views of individual users. They are unverified, possibly inaccurate, and not testimonials or endorsements.