4 Reasons To Fire Your Parents’ Advisor When Receiving An Inheritance

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Advice that helped your parents build wealth will not necessarily be financial guidance to help you maximize your inheritance in the future. Many people who inherit a large inheritance find a new financial advisor that better meets their current financial planning needs.

Perhaps there were times when your parents’ financial advisor was great for them but terrible for you. i have one gay financial planning Clients whose parents’ counselor fears homosexuality. That relationship would not be apt to move forward (to say the least). I’ve also spoken to several women who reported being mansplained by their parents’ male counselors. That, and many other reasons, inspired a successful businessman to find a new financial advisor when he inherited it.

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Research shows that 70 to 90 percent of people who own significant assets immediately fire a financial advisor who works for their parents. I have been fortunate enough to be able to work with many people who have had a large inheritance and were not comfortable with the financial guidance they were receiving from their parents’ financial advisors.

While I know that not all inheritance comes from parents, I will refer to them as an example for this conversation. Many points will be the same when inheriting money from an aunt or uncle. They can be increased even more if they are inherited from grandparents or great-grandparents.

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Does your parent’s advisor understand you and your financial needs?

The right financial planner doesn’t need to be in your place in life, but they do need to work with people like you. If a financial planner only works with people who are already retired, will that person be able to give you the best guidance to pay for college or buy a new home?

There are many scenarios where your parent’s advisor wants you to find another advisor. This can happen when a great legacy is divided in some ways. Each beneficiary can still inherit a substantial amount, but still falls below the financial advisor’s minimum client size. You never want to be an advisor’s youngest client.

Or worse, you don’t want to plow on a junior advisor who doesn’t know what they’re doing. I recently spoke to someone who just found out that they had been talking with an unlicensed subsidiary for several years, even though their financial firm had several million dollars. To say that they were angry would be an understatement.

Many financial advisors do not have the tax planning expertise to help you reduce taxes on your inheritance.

Do you like your parents’ counselor?

There are generational differences in our country, and those differences can extend into what you are looking for in the financial planner that best suits you. I am a gay financial advisor working primarily in Los Angeles and Palm Springs. I meet many people who didn’t feel comfortable coming to their parents’ financial advisor. Some were turned away because of their homosexuality or homosexuality. Yes, it still happens in 2022.

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Will your parent’s counselor still be there when you need them?

If you are starting a new relationship with a financial planner, you want this person to be around to help you reach your financial goals and beyond. It could be a relationship of twenty, thirty or even forty years. If your parent’s advisor is 65 or 89, for that matter, do you expect that if you’re in your fifties (or younger) by the time you retire, you’ll still be working for them? would have been?

You might think I’m kidding; Lots of financial advisors are still operating well into their eighties. According to J.D. Power & Associates, more than 20% of financial advisors are over the age of 65. I’m decades away from turning 65, but I could see myself working forever. i would have achieved Financial Freedom Long since then, but I love what I do, so why stop?

Have they been helpful in this difficult time?

You are a potential new client of your parent’s advisor. Hopefully, they have helped guide you through the minefield of choices you need to make about your legacy. They should try to get to know you (if they haven’t already worked with you), which can make it much easier to have them as your new advisor. It should be their duty to help you make wise choices with your legacy. It is your responsibility to take the time to find the best source of financial guidance for you so that you can make the most of your legacy.

Credit: www.forbes.com /

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