Receiving a large inheritance can be both a blessing and a burden, especially when it comes with the loss of a loved one. I remember vividly when I lost my father at 27, the flood of emotions and decisions that followed were overwhelming. One of the biggest questions you might face is: Should I keep my parent’s financial advisor, or is it time for a change?
This decision can be complex, and you’re not alone in facing it. Research suggests that 70-90% of individuals who inherit significant wealth choose to change their financial advisors. Here are some key considerations to help you decide whether to stay with your parent’s advisor or find a new one:
Does My Parent’s Advisor Understand Me and My Needs?
Even though we often see similarities with our parents as we age, our financial goals and dreams can differ significantly. Your parent’s advisor may have been a perfect fit for them, but do they truly understand your unique goals and values?
- Alignment with Your Values: Ensure your advisor knows and aligns with your personal values and objectives. If they primarily work with retirees, they may not be the best fit for your needs like college planning, buying a home, or managing newfound wealth.
- Tax Planning Expertise: Many advisors lack the specialized tax planning knowledge needed to minimize taxes on your inheritance. Ensuring your advisor has this expertise is crucial for maximizing your inheritance.
Do I Enjoy Working with My Parent’s Advisor?
A strong, trusting relationship with your financial advisor is essential. They will guide you through life’s ups and downs, helping you make critical financial decisions.
- Generational Differences: Your parent’s advisor might have different perspectives on finances and life. It’s important to have an advisor who understands your generation’s values and financial landscape.
Will My Parent’s Advisor Still Be Working When I Need Them the Most?
Consider the advisor’s career stage. According to J.D. Power, over 20% of financial advisors are older than 65. If your advisor is nearing retirement, will they be there for you in the long term?
- Long-term Relationship: Your financial planning horizon could be several decades. Ensure your advisor can commit to a long-term relationship, or you may find yourself transitioned to someone new without an established relationship.
Does My Parent’s Advisor Understand What I Am Going Through?
Losing a loved one is emotionally challenging. Your advisor should empathize with your situation and provide support beyond just financial advice.
- Emotional Connection: An advisor who has experienced a similar loss can offer valuable empathy and understanding during this difficult time. They can help guide you through both the emotional and financial aspects of your inheritance.
Don’t feel obligated to stay with your parent’s advisor if they don’t meet your needs. This is a pivotal moment for your financial future, and having the right advisor can make all the difference. If you’re feeling overwhelmed with your inheritance and unsure about your current advisor, reach out to us—we’re here to help you navigate this challenging time.