If you're feeling like your financial advisor doesn't have your best interest at heart lately, it's time to move on. When they're more focused on selling you products than ensuring your portfolio is earning at its optimum level, it's safe to say that you have a salesperson and not an advisor.

I went through a similar situation at the beginning of my marriage. My wife and I were ready to focus more intently on investing for our retirement.

We met with a broker who spent a lot of time upfront with us. He discussed our situation and how he could help us save for retirement and plan for our daughter's college needs.

As our relationship continued, the meetings became less frequent. When we did ask for advice, he would steer us toward products his company had strategic relationships with as opposed to mutual funds that would give us the best return.

How We Lost $5,000 Fast

In one specific instance, we had saved up around $100,000 to put a big down payment on our next home. We asked for his advice on a safe place to put our money while we were waiting to buy our home in the next couple of years. Our advisor suggested placing the money in a bond fund as it would be much less volatile than the stock market.

A few months later after taking his advice, our $100,000 was down to $95,000. Yes, I should have educated myself about front-load fees before investing such a large chunk of our savings, but that was what we were paying this guy for!

We would have been much better off simply putting that money in a high-yield savings account and keeping it liquid.

After that tough money loss and after educating ourselves further, we decided it was time to leave our financial advisor. We didn't feel like we had a partner in our retirement success anymore. He was not performing his fiduciary duty.

We transferred all of our money and invested in low-cost index funds with Vanguard at a fraction of the fees we were paying our advisor's firm.

How to Leave Your Financial Advisor in 5 Simple Steps

Let's say you're in a similar situation as we were and you're ready to make a change. Check out these 5 simple steps to leave your financial advisor.

Find Your Next Investing Partner

Before you say goodbye to your current advisor or move any assets, research how and where you'll be investing your money when you leave. You may fall into one of these three categories:

I'm Clueless

If you have no clue what to do about investing, I'd recommend speaking with an Advice-Only Financial Advisor. They don't make commission for selling you products, and they don't even manage your money. All you do is pay these folks a flat hourly fee for their advice. When you want to get more advice later on, you set up another meeting and pay them another hourly fee.

They can help you set up a portfolio that works for your situation without taking a percentage of your assets year over year. I recommend Nectarine as they are a good resource for finding an Advice-Only Financial Advisor that best fits your situation.

Check out our Nectarine Review to learn more about their platform.

I'd Like an Easy “Do it Yourself Option”

I'd recommend simply buying a broad market index fund like VTSAX from Vanguard.

The fees are low, you're investing in small slices of every company in the United States, and over the last 50 years, this has returned around 12% according to research done by Author JL Collins, who wrote The Simple Path to Wealth.

It is an excellent “set it and forget it” option for investors younger than 50.

I feel confident enough to DIY Invest

If you want more control and have grown your investing brain power lately, go with a low-cost partner like Vanguard, Fidelity or Schwab and create your own portfolio.

Wherever you choose to go, I'd recommend avoiding commission-based financial advisors. Based on their business model, they may be more interested in selling you specific products than advising you toward a successful retirement.

Understand The Fees

Once you've chosen your new partner, speak with them about the fees associated with the transfer of assets as well as any other fees. Here are some good questions to ask:

• If I transfer my assets over to you, will there be any fees when I open my account?
• What other fees should I be aware of?
• How much do your advisory services cost?

Also, research the fees associated with closing out your current investment account. For example, when we closed an account with Fidelity to move over to Vanguard, we were charged $50.

Have Your New Firm Help With The Transfer

Given that your new investment partner is getting your business, they are very keen on making your transition process as smooth as possible. Take advantage of their uber-kindness and ask them what the easiest process is to transfer your assets over.

Usually, they will have an online transfer system through their website, or there may be some manual paperwork involved. Depending on who you choose, the full transfer process can take up to 5-10 business days.

Do Not Send Yourself The Money (For 401k / IRA)

If you have a 401k, Traditional IRA, Roth IRA or any other tax-advantaged account, do not send yourself the money as you're making the transfer over to your new investing partner. You could be slapped with a 10% early withdrawal penalty and have to pay a boatload of taxes on your assets, depending on your type of account.

Instead, transfer the assets directly from one firm to the other. This process is known as a Trustee-to-Trustee Transfer or Direct Transfer.

Remove Emotion From The Equation

If you're dreading the phone call to your current broker, I completely understand. Who knows? Your investment advisor may be your brother-in-law. Yikes! I pray for you.

Try your best to remove emotion from the equation. You may hurt some feelings but this is your retirement we're talking about here!

Do as much of the leg work in transferring the assets over with your new investing partner. Once the money has been transferred out, if you feel compelled you can call your old partner and let them know the account can be closed.

If you call them beforehand, they will try to get you to stay and tell you all sorts of reasons you are making a mistake. Avoid that call if you can.

If it really is a family member or a close friend who is currently managing your money, then I'd discuss the reasons you're leaving in person. Show them the money you'd be saving and why you're not pleased with the overall partnership. If it were me, I'd want to know so I could improve and adjust my approach toward advising.

Who knows? Your frank advice may drastically improve their business.

Final Thoughts on How to Leave Your Financial Advisor

If you know it's time to leave your financial advisor, don't wait. This is one of those things in life that can drag on if you let it. Think of it like a bad romantic relationship that has gone on far too long. Rip the band-aid and move on.

If you'd prefer another financial advisor who has your best interest at heart, check out Nectarine.

They are a service that pairs you up with a financial advisor who has signed a fiduciary oath to work in your best interest. They don't sell products or insurance products disguised as investments … you just pay for their time and that's it.

I know the owner of the company, Jeremy Schneider. I trust him as a good person who is genuinely interested in helping everyday people win with money.

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Are you going to leave your financial advisor? What is the reason?

Please let me know in the comments below.

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