Is It Time to Fire Your Financial Advisor? By Investment Specialist Alan Mercurio In Louisville, KY

www.mercurioadvisors.com

About a year ago I read a Wall Street Journal online article that wrote, "81 percent of investors with $1 million or more in investible assets plan to take money away from their current advisor. An even larger number – 86% – plans to tell other investors to avoid their advisor." * The survey was conducted by Prince & Associates. The article pointed out that the greatest dissatisfaction surrounded large "brand" firms. Smaller, local financial advisory firms faired much better. Taking into consideration the turbulent economic times we have experienced for over a year, I still found it alarming that so many people were dissatisfied with their Financial Advisors. Being one of the smaller, local firms, I also saw it as an opportunity to identify these disgruntled investors and compel them to become my clients. At the same time, I had to consider the fact that some of my clients might also be looking for a new Financial Advisor, and there were always going to be other Advisors trying to lure my clients away from me.

I am writing this article to those of you who are dissatisfied with your Financial Advisor or investment firm. When is it time to fire your current Financial Advisor or firm and start looking for new financial planner? Below are some indicators to look for to evaluate the performance of an advisor.

Did you lose more than 15% last year?

If your Financial Advisor was metaphorically sleeping at the wheel during the recent volatile market conditions, you have every right to be looking for a new Advisor. Let us compare the latest economic down turn to the one earlier this decade. During the 2000–2002 down turn, we had enjoyed a twenty year bull market. Some of the brightest economic minds in the country missed the market drop. I think it is understandable, if not excusable, that they suggested investors hold their course. In this recent down turn; however, the warning signs were everywhere. If your Advisor did not take any precautions to help protect you from a 15%-30% loss in the market value of your accounts, it is maybe time you cut them loose.

Are you on your Advisor´s radar screen?

When is the last time you heard from your Advisor? If he or she is not keeping in contact with you periodically, you should find someone who will. My best client is my competitor´s best prospect. If I am not providing them Top Rated Service, then I deserve to lose them. Your Advisor should always keep the lines of communication open and full. This can be done through regular in-person meetings, phone calls, emails, letters, etc. Every method of contact does not have to be personally addressed to you, but the Advisor should be communicating events, market conditions, product news, financial opportunities, and other related information to his or her clients. There are enough good Financial Advisors who care about their clients that you should never have to accept poor or less than expected service. Pack your bags (accounts) and take them across the street. Someone over there will love you.

Does your Advisor truly care about you?

A few years ago, I heard it said, "No one really cares how much you know, until they know how much you care." Does your Financial Advisor demonstrate his or her appreciation for your business? This follows closely the expectation that your Financial Advisor stay in touch with you. Since you do have choices concerning your Advisor, he or she should take every opportunity to say "Thank You." This can be done through appreciation events, or even educational seminars. The fact that your Advisor would invite you to his or her financial seminars demonstrates that he or she cares about your continued financial well-being.

In closing, please look at your relationship with your Financial Advisor. Are you getting the service you feel is appropriate and acceptable? If not, maybe it is time to "Fire Your Advisor." It is your money and your future. Donald Trump is not the only person who can say "You´re Fired!"

For more information about this or other topics related to financial planning and investments, visit our website at www.mercurioadvisors.com and click on contact us for your free plan review.

Alan Mercurio

Mercurio and Associates Inc.

330 N. Evergreen Rd., Suite #3

Louisville KY 40243

502-253-9366 or 866-672-5456

Registered Representative offering securities through First Allied Securities Inc. A registered Broker/Dealer Member FINRA/SIPC. Investment Advisor Representative offering services through First Allied Advisory Services Inc.

* URL to article: http://blogs.wsj.com/wealth/2008/09/30/wealthy-investors-stage-revolt-against-advisors/