Feeling the Advisor Shuffle?

An article by Alex Padalka in the December 21st Financial Advisor IQ newsletter talked about how Wells Fargo is incenting its more experienced advisors to move clients with under $65,000 to trainees.  The idea is for advisers to have a better ratio of larger accounts.


According to the article, the $65,000 account minimum is pretty low in the industry.  Merrill Lynch requires advisors to hold to a $250,000 account minimum.


If you have ever felt like your advisor was here for you one day and gone the next, here are some ideas.


  1. Consolidate accounts. If you have several small accounts at various institutions, consider transferring all of them to the one you like the best.  If you have more assets at one place, you will likely get better service and pricing.
  2. Speak up. It may not be all about the money.  If the advisor really likes you personally, he or she may bend the rules on the firm’s account minimums.  If, however, you are a high maintenance, low dollar customer (and who of us will really admit that to ourselves?) expect account minimums to be held firm for you!
  3. Be a referral source. We can’t all be high dollar clients, but if you are a strong referral source for your advisor, chances are he will hang on to you with both hands, even if his firm is encouraging the small-account shuffle.


Most financial advisors have bosses and firm rules they must adhere to.  Even independent financial planners have to keep their profit margins in mind when taking on new accounts and servicing old ones.  If you are feeling shuffled around, ask your advisor directly what can be done so you can receive the service you deserve.



If these topics sound like they would be of interest to your employees, sales conference, or professional organization, contact me at 303-324-0014 or kristi@sullivanfinancialplanning.com for more information.

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