Submitted by nsscadmin on
If your financial adviser decides to move to a different firm, the next move is yours. You have three choices on what you can do.
1. Stay with your current firm
2. Move your investments to the firm of your new adviser
3. Move your investments to a completely different firm and different adviser.
Which of these three actions is best for you will be up to you to determine. The easiest is staying with your current firm. Under this choice, your firm will assign you and your accounts to a new adviser. You must decide if this new relationship is right for you, your money and your goals.
If you choose to stay with your current adviser and follow them to their new firm, there are several questions that need to be answered. Do you need to liquidate any of your current holdings to go through with the move? Are there any transaction costs? Will any sales trigger capital gains and taxes? Are there fees you will need to pay or penalties? Will the move open you to any new tax concerns? Make sure you know the answers to all these questions and how much the move could potentially cost you before going through with anything.
The third choice is to break away from both your current firm and your current adviser by taking your business to a new firm and a new adviser. This choice can also come with fees, possible penalties, and tax concerns. It also allows you to closely examine the service you’re currently getting and the fees you’re paying and compare them with what other firms have to offer.
Whichever of the three options you choose, make sure you do your homework, ask and have answered all questions you have, and make sure you make the right choice for you, your money and your financial goals.