Dear Broker...

Breaking up is hard. It's one of the biggest reasons clients continue relationships with financial advisors, even after learning that the advice provided may not have been in their best interests. In many cases, we have a personal connection with our brokers or advisors and don't want to hurt that relationship.

Unless you enjoy providing a form of charity to your friend or relative through high fees, commissions, and/or lost opportunities, you may find yourself in a situation that requires severing a business relationship in the nicest way possible.

To that end, if you have decided to break up with your broker and hire a fee-only fiduciary investment advisor (like our firm, Vestory), here's a sample letter that you can modify in any way you deem appropriate. Just copy the text below and customize the bracketed text in any word processing program. Stay strong. You're doing the right thing for your future!

Dear [Former Advisor’s Name]: 

[I, We] are in touch with you today with some bittersweet news. [I, We] have appreciated our professional relationship with you through the years, and have enjoyed your friendship [as well/for even longer]. Nevertheless, the time has come for us to move forward with a new advisor to oversee [my, our] wealth. 

As [my life has, our lives have] evolved, so too has [my, our] need for a different form of wealth management. To that end, [I, we] have signed an agreement and account paperwork with [Our New Advisor, Vestory]. While [I, we] know this can’t come as pleasant news, please know that [I, we] will be in good hands. Thanks in advance for helping with a smooth transition during the account transfer process. 

[Former advisor name], [I, we] look forward to continuing our friendship, and wish you nothing but future success in your practice. 

All the best, 

[Your Name(s)] 

PS: Several qualities contributed to this new advisor selection. [Our New Advisor, Vestory] is a Registered Investment Advisor, with a primary focus on providing fee-only fiduciary investment advice and management. It receives all of its compensation in the form of a direct fee. 

Don McDonaldComment