Know When To Can Your Financial Planner

Former financial planner Nora Dunn knows that lots of folks are itching to do something after seeing their latest investment statements—maybe to the point of axing their advisor. Not a great idea, she writes, unless he or she is unresponsive, pushy, or, even worse, trying to sell you a fortune-telling service:

If they call you wanting to make drastic changes based on what they think the market is going to do, run. What they should really be focused on is you, your goals, and a plan (and portfolio) that will weather the good times and the bad. Sure – small adjustments here and there may be prudent, but moving everything in and out of different asset classes is a losing game. They may get it right a few times, but all it takes is one bad calculation to lose everything you have gained.

Dunn’s got eight other no-nos to watch for with any advisor. Any of them ring call up a familiar story? Warn your fellow readers (or praise the good advisors) in the comments.