AKAMAI MONEY

By Deborah Adamson
Advertiser Staff Writer

Q: We have been a client of a major brokerage firm for over 10 years, working with the same financial adviser. For the first few years, he was really communicative and would call us a lot. But over the years he has stopped calling and barely even acknowledges us. He is even sometimes angry on the phone when we call him. It is time to make a change. How would you recommend we do this in a nice way? — Rob Holt, Honolulu

A: Firing your financial adviser, even with as much aloha as you can muster, can be uncomfortable. No matter how gently you phrase it, you're ending a long-term relationship. But keep in mind that it's your money and you're entitled to make a switch for any reason.

"It's important for the clients to understand that they're the boss," said Scott Makuakane, a director of the Financial Planning Association of Hawaii. "They're perhaps being overly gracious and overly sensitive to the person's feelings. Not that you should be callous, but you're the boss."

Actually, you can avoid even talking to your adviser. Just ask your new financial planner to take care of transferring your accounts, said Danny Alvarez, an investment representative with Edward Jones in 'Aiea.

But it would be courteous to inform your old adviser of your decision. Send him a letter if you wish to avoid a direct confrontation.

"Say 'We really appreciate your help over the years, but we would like to go in another direction. Thank you for your services,' " Makuakane said.

If you're staying with the same brokerage firm, inform the branch manager by letter and ask him or her to recommend three experienced advisers for you to interview, said Robert Saracco, first vice president and a senior financial adviser at Merrill Lynch in Honolulu.

If you plan to move to another firm, one way to find a list of planners is through the Web site of the Financial Planning Association of Hawaii at www.fpahawaii.org. You also could go to www.fee-only.org, the Web site of the National Association of Personal Financial Advisors.

Take your time in searching for a new adviser because you're going to be working closely together.

"It's an intimate relationship," Alvarez said. "You need to work with someone you trust, someone who can give you good service."

What's good service? Your adviser should review your portfolio with you, preferably every quarter, Saracco said. He or she should contact you when a good idea hits or when interest rates move to a favorable level, if that's what you wish, Alvarez said.

Good advisers should have a clear investment process, Saracco said.

They know your financial goals and how much money and time you'll need to meet them. They're aware of your risk tolerance and will properly allocate and invest your money. They also should have a strategy on when to sell your investments.

Finally, be aware that you could incur some costs when you switch to another investment firm or choose to handle your own accounts.

When you transfer your retirement assets, your former investment firm may charge a fee to close the account. The fee varies by company; it could be $50, 1 percent of assets or another amount, Saracco said.

If your money is held in a proprietary account that cannot be transferred, you can either cash out — sell your investments and incur capital gains or losses — or leave the money with the former investment firm, Saracco said. Your new adviser can help determine whether the account can be moved.

However, most investments today can be transferred among brokerages, he said.

If you want to invest your money by yourself, you'll need to contact each company at which you have investments — whether they are mutual fund firms, banks or brokerages — and arrange to move your assets. Ask your investment firm about any fees they'll charge to close your accounts.

Got a personal finance question? Contact Deborah Adamson at dadamson@honoluluadvertiser.com or 525-8088.