Why $2M+ Retirees Are Firing Their Advisors (And What To Do Instead)
You saved hard, hit $2 million by your mid-50s, and thought peace of mind would follow. Instead, you get quarterly reports filled with charts and market chatter, yet no clear answers to the questions that matter. If you feel stuck, you are not alone. Many pre-retirees are leaving big, familiar firms because they want more than performance updates. They want a real retirement plan.
The Frustration of Having $2 Million Saved but No Real Plan
Picture this. You are 55 with $2 million saved. You should feel confident, yet you are frustrated. You keep getting a pie chart and a pat on the head. Meanwhile, your biggest questions go unanswered.
Many are walking away from big firms like Charles Schwab, Merrill Lynch, UBS, American Century, and Edward Jones. These firms employ smart, well-meaning people who helped you build wealth over time. But size and kindness do not replace a strategy for retirement. In this phase, what matters goes beyond returns.
What traditional advisors often focus on:
* Quarterly reports, charts, and graphs
* Market outlooks and performance reviews
* Risk tolerance questionnaires and model portfolios
What you actually need:
* A plan for taxes, income timing, healthcare, and withdrawals
* Guidance on Social Security and Medicare
* Clarity on the purpose of your money and how to use it
If questions like When can I retire? How much can I safely spend? Should I claim Social Security early or wait? get vague answers, this post is for you.
Investment Advice Is Not the Same as Retirement Planning
This is the core misconception. Investment advice does not equal retirement planning. An advisor who focuses only on funds is not planning your retirement. They are managing your portfolio.
A real plan addresses the bigger picture: income, taxes, healthcare, and legacy. The truth is the industry often falls short here. Many advisors are only allowed to discuss the portfolio, not the decisions that drive your long-term outcomes.
This guide shows you how to know when it is time to move on, how to find the right kind of advisor, and how to switch without taxes, penalties, or market disruption.
Kyle Hammerschmidt, founder and lead advisor at MOKAN Wealth, uses a five-part planning system that goes past investments and into the questions that matter most. The five focus areas:
1. Income
2. Taxes
3. Investments
4. Healthcare and Medicare
5. Social Security and legacy
Or as the old line goes, you need the full plan, not just returns, to hear the rest of the story.
Why You Have a Portfolio Manager, Not a Retirement Planner
Ask yourself this. When was the last time your advisor talked about anything other than performance or the market outlook? If your answer is never or not often enough, you probably have a portfolio manager, not a retirement planner.
Investments matter. But here is the uncomfortable truth. Whether you earn 7 percent or 8 percent is not what determines whether you retire at 60 or 62, leave a legacy, or spend your last dollar on your last day. Outcomes like that come from decisions outside your portfolio.
Key decisions that move the needle:
* When to take Social Security
* How to structure withdrawals to minimize taxes over your lifetime
* Whether to do Roth conversions in your 50s or your 60s
* How to manage income to avoid Medicare premium surcharges (IRMAA)
* How to bridge healthcare if you retire before 65
So why do many traditional advisors skip this? Many are trained and restricted to portfolio work. They build diversified models, rebalance, and send performance summaries. That is what they know. If that is all they do, that is all you get.
Research from Domain Money points to three core parts of effective retirement planning at a minimum: an investment plan, an income plan, and a tax plan. If your advisor only handles one of the three, you are not getting a complete plan.
Quick test: Are you getting planning or just performance?
* Pull your last meeting notes or quarterly report.
* What percent was performance, allocation, or market commentary?
* What percent was Social Security strategy, tax planning, healthcare costs, or lifetime withdrawal planning?
If it is 90 percent investments and 10 percent jargon, you have a manager, not a planner.
Signs It’s Time to Fire Your Advisor: 5 Clear Warning Signs
If two or more of these feel familiar, it is time to look elsewhere.
1. They cannot answer your biggest questions
* You ask, When can I retire with confidence? and get vague lines like, if you average eight and pull out five.
* You ask, How much can I safely spend? and get 4 or 5 percent rules with no tax lens.
* You ask, When should I claim Social Security? Should I do Roth conversions? How do I avoid IRMAA? and they say, we will get to that later. That is not planning.
2. They only contact you when returns are good or the market drops
* If the only time you hear from them is during an annual review or when the S&P falls 10 percent, they are reacting, not planning.
* You should meet once or twice a year to review your plan, not just your portfolio.
3. They have never mentioned tax planning
* No talk of Roth conversions, tax-efficient withdrawals, how much of your Social Security will be taxable, tax-loss harvesting, managing modified adjusted gross income, or qualified charitable distributions.
* Taxes are one of your biggest retirement expenses. Many retirees overpay by tens or hundreds of thousands because no one addressed it early.
4. They push you into a proprietary model based on a risk quiz
* A quiz that plugs you into a pre-built model ignores your timeline and your taxes.
* True planning reflects your actual retirement sequence, not your feelings about volatility this month.
5. You do not trust them anymore
* Maybe they are hard to reach, talk down to you, or dodge your questions.
* Trust is the foundation. If it is gone, the relationship is over.
What to Look for in a True Retirement Planner: 6 Non-Negotiables
Ready to hire the right kind of help? Here is what separates a retirement specialist from an asset gatherer.
1. Fiduciary 100 percent of the time
* They must put your interests first at all times.
* Ask directly, are you a fiduciary 100 percent of the time? If they hesitate, move on.
* You need advice on investments, income, taxes, healthcare, and legacy, not just funds.
2. Specializes in retirement
* Look for someone who works mainly with people in their 50s and 60s.
* Retirement planning is its own specialty. You would not ask a podiatrist to do heart surgery.
3. Clear, structured planning process
* Real planners have a defined system that covers all key areas.
* At MOKAN Wealth, the five-part framework covers income, taxes, investments, healthcare and Medicare, and Social Security and legacy.
* You want a process that makes sure nothing falls through the cracks.
4. Tax strategy from day one
* You should hear about Roth conversions, tax-aware withdrawal order, IRMAA thresholds, and how the advisor coordinates with your CPA.
* If taxes are not part of the first conversation, keep looking.
5. Transparent billing
* Know exactly what you pay and how it is calculated. Many advisors charge around 1 percent of assets, with typical ranges from 0.5 to 2 percent based on size.
* Ask to see an invoice and the calculation.
* Common pitfalls to watch:
* You do not know what you pay.
* You pay an advisory fee, then also pay hidden fund expense ratios.
* The firm steers you into its own fund family with extra layers of cost.
6. Strong client reviews
* Check Google and the firm’s website for reviews or testimonials from clients like you.
* Silence is a signal. Real trust leaves a trail.
Red Flags to Avoid When Choosing a New Advisor: 7 Warning Signs
Before you sign, scan for these. They can save you from another bad fit.
1. Vague or hidden fees
* If they cannot give you a clear written breakdown, hard pass.
2. Not a fiduciary
* If they mention suitability standards or dodge the question, walk away.
3. High-pressure tactics
* If they urge you to transfer money today, that is a bad sign. Pros give you time to think.
4. Pushes high-commission products
* Be wary of proprietary funds, loaded mutual funds, or complex annuities that are not clearly tied to your goals.
5. Unrealistic promises
* Guarantees like 12% returns every year or promises you will never run out of money are fantasy.
6. No references or public testimonials
* If they have happy clients, they can show it.
7. No discussion of income, healthcare, or taxes
* If they do not ask for your tax return, discuss Roth strategies, show Medicare and IRMAA planning, or address Social Security, you are heading back to a pie chart shop.
How to Fire Your Advisor and Switch Without Drama, Taxes, or Losses
Breaking up can feel awkward, but this is a business decision. You are not ending a friendship. You are changing a service provider.
Use this simple script:
Hi [Name], I wanted to let you know I have decided to make a change with my financial planning. I appreciate the work you have done. I have found an advisor whose approach is a better fit for my retirement goals. I will be moving my accounts, and my new advisor will handle the transfer process. Thank you for your help over the years.
A few tips:
* Sign with your new advisor first. Some advisors try last-minute saves. If they could do this before, they should have.
* Do not feel pressured to explain your reasons. It is your money.
* Expect pushback or a fee cut. Stay firm.
* Your new advisor will handle the transfer paperwork.
Moving accounts safely without tax surprises
1. Pre-tax accounts (IRAs and 401(k)s)
* Use a direct trustee-to-trustee transfer or a direct rollover.
* Money moves from one custodian to another without you touching it.
* No taxes or penalties when it stays in a pre-tax account.
2. Taxable brokerage accounts
* Use an ACAT transfer, in kind. Your holdings move as they are.
* No sale means no taxable event.
3. Roth IRAs
* Same trustee-to-trustee process as traditional IRAs.
* No taxes or penalties.
4. Market risk during transfer
* Transfers usually take 5 to 10 business days.
* You cannot trade during that time, but your holdings stay invested.
* They do not auto-convert to cash.
Transfers like these happen every day. When handled by a competent team, the process is smooth and low stress.
You Deserve a Real Retirement Strategy, Take the Next Step
You did not save $2 million by chance. You worked hard, stayed disciplined, and made smart choices. Now you deserve an advisor who gives you a full plan, not just a performance update.
You earned this. Choose a partner who helps you pay less in taxes and spend with confidence.
