Major Milestones, New Priorities

“Almost every major life event has an impact on finances,” says Raphael Martorello, Managing Partner and Founder at LotusGroup Advisors. “Transitions can trigger anxiety about money, and people want to be reassured they’ll be okay.”

A handful of events account for most financial plan resets, including shifts in investment strategy. “Transitions can fundamentally challenge plans and goals,” says Nick Pirnack, Partner and Senior Advisor at LotusGroup. “You may need more than an update to your current plan, requiring bigger thinking.”

That often means seeking fresh perspective from a new advisor who broadly considers your emotions, financial situation, and investment strategy. Should you make the leap? Here are four scenarios that often cause people to switch financial advisors, and why a change might make sense.

RETIREMENT

Saving for retirement is different from entering retirement it A lot of questions come up,” Martorello says. “Will I run out of money? When should I take Social Security? Should I draw retirement funds now or later? People worry because they shift from putting money in to pulling money out  .” Being older also means there’s less time to recoup money due to downturns or mistakes.

Why Switch Advisors

Some advisors are more geared toward making investments than considering major factors such as Social Security or tax planning. Others may not square your lifestyle with resources or a realistic timeline in which you could live longer than you think. “You need someone who walks you through realities and builds a plan tailored to you,” Pirnack says.

What to Look For

Seek an empathetic advisor who understands both your situation and you. “Look for a firm with a comprehensive understanding of retirement and registered advisors like ours who are fiduciaries, so they’re not trying to sell you specific investment vehicles,” Martorello says. “You want strategies designed to pursue steady growth while managing downside risk.”

DIVORCE

“Splitting with a spouse can be a wealth destroyer,” Pirnack says. “It’s important that both parties have someone to help them understand the financial implications and what life looks like on the other side in order to build a plan that smooths the transition economically.”

Why Switch Advisors

It’s common for one person to handle most of a couple’s finances. That person may want to keep their current advisor. The other spouse—who typically feels less confident about financial matters—could benefit from a new advisor who isn’t closely tied to the ex and hasn’t been guided by the ex’s preferences.

What to Look For

“Divorce is done through the state, so it’s good to tap local expertise,” Martorello says. A good advisor will explain investment strategies simply and be both knowledgeable and empathetic. “An ideal firm provides attention and care to clients and is able to help create budgets, make lifestyle plans, figure out housing finances, and connect you with divorce coaches, mediators, and lawyers—all of which LotusGroup does,” Pirnack says.

RELOCATION

Financial advice may not be your first priority when moving to a new city. “But once you settle in, having a local advisor can offer advantages,” Martorello says.

Why Switch Advisors

Some people are fine doing video calls with their advisor back home. “Our feeling is that being closer to clients helps us better align planning and execution.” Pirnack says. A local advisor also can help you make community connections. Another aspect: “It can be hard to leave an advisor you’re unhappy with,” Martorello says. “A different location provides an understandable reason to go in a new direction.”

What to Look For

A firm that prides itself on community connections can be especially helpful. “Many of us at LotusGroup live in the firm’s neighborhood,” Martorello says. Clients are encouraged to drop by for coffee or a drink. “We limit the number of clients each advisor has so we have time for each person,” Pirnack says.

ADVANCEMENT

Getting a better job presents challenges such as optimizing transfer of funds from an old 401(k) and setting up a new one; potentially moving to a higher tax bracket; negotiating new benefits; and guarding against what Pirnack calls lifestyle creep. “People who make more tend to spend more,” he says. “The goal is also to save more, which takes discipline.”

Why Switch Advisors 

Higher income can bring higher-level opportunities and pitfalls. “You should take a strong look at your advisor and decide if they have the competence and capabilities to execute on the level you deserve,” Pirnack says.

What to Look For 

“You want an advisor who works with thriving professionals and understands the aspirational element of success,” Martorello says. “We understand this cohort and can tap multiple strategies to bring professionalism, care, and commitment that ensures clients optimize any transition and make life count going forward.”

Richard Laliberte is an award-winning journalist who writes on topics including healthcare, interior design and financial services.