Why Investors Fire Advisors

Every year millions of investors fire their advisors and hire new ones. When the securities markets are producing positive returns, three to four million advisors are fired every year. However, when the securities are producing negative returns, that number doubles or triples.

There are lots of reasons why investors fire so many advisors, but one stands out above all of the rest. The advisors were hired for the wrong reasons. And, when investors realize their mistake, they fire them.

Most investors also set themselves up for firing another advisor in the future. That's because they use the same process to hire the new advisors that they used to select the advisors they just fired. There is a high probability they will fire the new advisor in a few years for the same reasons.

There are additional reasons why so many investors fire their advisors so frequently:

• Whatever they were promised when they selected the advisors didn't happen. What they were told was part of a sales pitch.
• They determined they were not achieving their financial goals.
• Their assets were under-achieving common benchmarks
• They did not receive the services they were promised. The advisor sold them products, collected his or her commissions, and ignored them.
• The investors found out other people were getting better results.
• Their assets were exposed to too much risk.
• They paid excessive taxes on investment income and gains.

There is only way for you to avoid these problems. You have to select the right advisor for the right reasons. Personalities and sales pitches have nothing to do with competency and integrity.