Is it time to find a new financial planner?

When it comes to managing finances, most Canadians want a financial planner they can trust—someone who not only understands their goals but also acts in their best interest.

Like any professional relationship, that client-planner dynamic should be regularly evaluated.

Unfortunately, there are some financial planners out there who promise far more than they deliver. With that in mind, here are five red flags to watch for in your relationship with your planner. If any resonate with you, it might be time to explore other options to ensure you’re getting the support you need.

1. Lack of personalization in advice—A professional financial planner should tailor their recommendations to fit your unique situation. Financial plans are never a “one-size-fits-all” solution, so if your planner seems to be using a generic approach without understanding your specific goals, it’s a red flag. For example, if they’re suggesting high-risk investments to a conservative saver or if they overlook essential financial goals like education savings or retirement specifics, this could indicate a lack of genuine interest in your situation. A competent planner will take the time to know you, discuss your financial goals and risk tolerance, and adapt strategies as your life evolves.

2. Limited communication or availability—Effective communication is essential in any planner-client relationship. If you have difficulty reaching your planner, or if they consistently fail to follow up on your requests or concerns, this might be a sign your relationship is not a priority. A planner should be available for periodic reviews and updates on your financial plan and portoflio and be quick to respond to questions, especially in times of market volatility or financial uncertainty. Limited availability can also indicate an overloaded planner or one who may lack a commitment to proactive service.

3. Unclear or hgh fees—Financial planners can charge in several ways—through a percentage of assets, hourly fees, or commission. Regardless of the model, fees should be transparent and well-explained. Unfortunately, some planners are vague or evasive about their compensation structure, which can erode trust and leave clients feeling they’re not getting value. High fees that seem out of alignment with industry standards, especially if your portfolio hasn’t shown meaningful growth, may be a sign you’re overpaying. Don’t hesitate to ask for a breakdown of what you’re paying and how it aligns with your goals. Clear, transparent fees are a hallmark of a trustworthy planner-client relationship.

4. Poor performance with no explanation—No planner can guarantee a high-performing portfolio every year. Market fluctuations are normal and every portfolio experiences ups and downs. However, if your investments are consistently underperforming or if there’s a lack of clarity regarding performance, that is a problem. Competent planners should be able to explain how your investments align with your goals and offer insight into market performance. If you’re not seeing growth that reflects your risk tolerance and goals, and your planner can’t adequately explain why it may be time to seek someone who can provide more informed guidance.

5. You’re not feeling respected or heard--Your financial planner should foster a relationship built on trust, empathy, and mutual respect. If they talk down to you, consistently only talk to one spouse or the other, dismiss your questions or pressure you into decisions that make you uncomfortable, it could signal an unhealthy relationship dynamic. A financial planner should be someone who listens, values your input and takes time to educate you on your options, empowering you to make informed choices. A planner’s role is to be an advocate, not to create a power imbalance. If you feel intimidated, it might be time to find someone who treats you as a valued partner in your financial journey.

Taking action: Seeking a new financial planner

If one or more of these red flags resonate, it could be worthwhile to explore other professionals. Start by identifying what qualities you’re seeking—such as enhanced communication, transparency or personalized service. Many Canadians find success by asking for referrals from family, friends or colleagues, or by researching certified financial planners through tools such as the FP Canada “Find a Planner” tool.

Above all, remember, the financial planner-client relationship should evolve with your financial life. The right planner will help you confidently navigate financial decisions and provide the guidance and support you deserve.

By staying aware of these red flags and prioritizing a relationship that respects your needs, you can secure a financial partnership that better serves your future.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.