What to Do When Your Financial Advisor Retires. 8 Questions to Ask Your New Advisor

Posted on August 19, 2026August 10, 2026 by Brian Colvert

New Financial Advisor? What to Ask Before You Stay

If your financial advisor is retiring, you may assume the person taking over your accounts is the natural choice to continue managing your money. That may be true, but it is worth taking the time to find out.

A new financial advisor can have a very different investment philosophy, fee structure, planning process, or approach to retirement than the advisor you have worked with for years.

That matters even more when you are approaching or already in retirement.

Before agreeing to continue the relationship, ask these eight questions to understand exactly who will be managing your money and whether they are the right fit for the years ahead.

Even if your advisor isn’t retireing now this may still be worht a read as according to J.D. Power’s 2025 Financial Advisor Satisfaction Study, 46% of financial advisors surveyed plan to retire within the next 10 years, highlighting how many investors could soon find themselves working with a new financial advisor.

Keep reading, or if you prefer to listen or watch… check out the Podcast or full YouTube video.

Why You Should Evaluate a New Financial Advisor

Advisor succession is becoming an increasingly important issue for investors. When an established advisor retires, clients may be transitioned to someone younger or to another advisor within the firm.

That transition does not necessarily mean the new advisor was selected specifically because they are the best match for you.

Financial advisory practices also have economic value. In some situations, another advisor may purchase all or part of a retiring advisor’s business. As a result, the person who takes over your accounts could have different investment strategies, services, fees, or planning philosophies.

Your retirement savings are too important to simply assume everything will remain the same.

Treat the transition as an opportunity to interview your new financial advisor and decide whether you would choose that person yourself.

1. Are You a Fiduciary at All Times?

Start with one of the most important questions you can ask a financial advisor:

Are you a fiduciary at all times?

A fiduciary is required to provide advice that is in your best interest. Understanding when and how that obligation applies can help you identify potential conflicts of interest. Some financial professionals operate under different standards depending on the account or service they are providing. That distinction may not be obvious to the client.

Ask your new financial advisor to explain their fiduciary responsibility clearly, including whether it applies to every account they manage for you.

You should understand how they are compensated as well.

Commissions, product incentives, and other forms of compensation can affect the economics of certain recommendations. Knowing how your advisor gets paid gives you additional context when evaluating their advice.

2. What Is My Total Cost in Year One?

An advisory fee is only one piece of the cost of managing an investment portfolio.

For example, an advisor may charge a percentage of the assets they manage. Additional expenses could potentially include investment costs, transaction expenses, product fees, or other charges.

Ask your new financial advisor for the total estimated cost of the relationship, not simply the headline advisory fee.

Questions may include:

What percentage am I paying for investment management?
Are there additional account or trading costs?
Do any of my investments carry separate fees?
Are commissions involved?
Have any fees changed since my previous advisor managed the account?

No advisor should be expected to work for free. The goal is simply to understand what you are paying and what you are receiving in return.

Fees that appear small on an annual basis can become meaningful over a long retirement.

3. Can I See an Example Financial Plan?

Investment management and financial planning are not the same thing.

A portfolio of stocks and bonds may be an important part of retirement planning, but retirees often face decisions that extend well beyond asset allocation.

Ask your new financial advisor if you can see a redacted example of a financial plan. The example can help you determine how deeply the advisor approaches retirement planning.

A comprehensive process may consider areas such as:

Social Security
Healthcare expenses
Tax planning
Roth conversions
Required minimum distributions
Withdrawal strategies
HSA planning
Estate planning
Investment management

Seeing the actual planning process can tell you much more than hearing someone say they provide “holistic financial planning.”

You want to know whether your advisor is building a retirement strategy or primarily managing investments.

4. How Do You Plan for the Years Between Retirement and RMDs?

The years immediately after retirement can present valuable planning opportunities.

For many retirees, there is a period between leaving the workforce and beginning required minimum distributions. Income may temporarily be lower during those years.

That window can create opportunities to evaluate strategies such as Roth conversions and other tax-planning decisions.

Ask your new financial advisor how they specifically approach those years. More importantly, find out what causes them to recommend action.

Do they have specific triggers they monitor? Will they review the opportunity every year? How do taxes factor into the decision?

A strong retirement planning process should not rely on making these decisions at the last minute.

Your advisor should have a system for evaluating opportunities as your retirement evolves.

5. How Often Will We Meet?

Communication expectations should be established before you commit to a new advisory relationship. Ask how often the advisor typically meets with retirement clients.

Some advisors schedule annual meetings. Others may meet semiannually or quarterly depending on the client’s needs and the services being provided.

The frequency itself is not necessarily the most important issue.

What matters is knowing what to expect.

Find out whether meetings are proactively scheduled by the advisor or whether clients are expected to initiate them. Ask how the advisor communicates when an issue comes up between scheduled reviews.

Retirement can involve decisions about taxes, investments, Social Security, healthcare, estate planning, and withdrawals.

You want a new financial advisor who will be available when those decisions need to be made.

6. How Did You Handle the Last Major Market Downturn?

Markets are relatively easy to discuss when they are rising.

A downturn can tell you much more about an advisor’s philosophy. Ask your prospective advisor what they told clients during the last major market decline.

Were they making significant portfolio changes? Did they encourage clients to stay disciplined? Were they attempting to predict short-term market movements?

Listen closely to the reasoning behind their decisions.

Their answer can help you determine whether their investment philosophy aligns with yours.

It may also reveal how they communicate when markets become stressful.

You are not simply evaluating performance. You are trying to understand the process behind the decisions.

7. Will You Coordinate With My Other Professionals?

Retirement planning rarely happens in isolation.

Your financial decisions may involve your CPA, estate planning attorney, insurance professionals, and other specialists.

Ask whether your new financial advisor helps coordinate those relationships.

An advisor does not need to be an expert in every area. However, someone overseeing your financial plan should understand how the different pieces work together.

For example, an estate plan may establish certain intentions for your assets. Beneficiary designations on retirement or investment accounts also need to align with those intentions.

Tax strategies can involve similar coordination.

A financial advisor who communicates with your CPA can help ensure investment and retirement decisions are considered alongside their potential tax consequences.

Think of your advisor as the quarterback of your financial life rather than simply another player on the field.

8. What Is My Exit Strategy?

It may seem strange to discuss leaving a financial advisor before you have even decided to work with them.

That is exactly why you should ask.

Find out what happens if you decide six months, two years, or even ten years from now that the relationship is no longer right for you.

Can your investments transfer easily?
Are there surrender charges?
Do any products have holding periods or penalties?

Certain financial products, including some annuities, can include surrender schedules that make exiting expensive for a period of time.

Understanding those restrictions before investing is considerably easier than discovering them after you decide you want to leave.

A good relationship should begin with a clear understanding of how it can end.

Don’t Automatically Stay With a New Financial Advisor

A longtime advisor retiring can feel disruptive, especially when that person has guided your finances for years. Still, the transition gives you an opportunity.

Instead of automatically remaining with whoever takes over the practice, evaluate the new financial advisor the same way you would evaluate someone you were hiring from scratch.

Ask about fiduciary responsibility, fees, retirement planning, tax strategy, communication, investment philosophy, professional coordination, and your ability to leave.

These conversations do not need to take hours. In roughly 30 minutes, you can learn a great deal about how an advisor operates and whether their approach fits what you want for your retirement.

The decision matters because small differences in fees, taxes, investment decisions, and retirement planning can compound over many years.

Your financial advisor may have retired, your responsibility for choosing who manages the next stage of your financial life has not.

Considering a New Financial Advisor?

If your financial advisor has retired, your accounts have been transferred to someone new, or you are questioning whether your current advisor is still the right fit, a second opinion can help.

At Bonfire Financial, we look beyond investment allocation to understand how your investments, retirement income, taxes, Social Security, estate planning, and long-term goals work together.

Before signing anything with a new financial advisor, take the time to understand your options.

Schedule a conversation with us to get a second set of eyes on your retirement plan.

How I Invest: A look inside a CFPs Portfolio

Posted on August 21, 2024January 19, 2025 by Brian Colvert

Today we are diving into a question that doesn’t come up as often as it should: How do I personally invest? This is a crucial question that any prospective client should ask. Are you curious what is inside your CFPs portfolio?

Listen now on the Podcast:

iTunes | Spotify | iHeartRadio | Amazon Music

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Transparency in Investment

I firmly believe that transparency is the foundation of a trustworthy advisor-client relationship. The investments I recommend to my clients are the same ones I would consider for my own portfolio. This principle stems from a straightforward idea: if I am advising on an investment, it should be a good enough investment for my money.

However, investing one’s own money in the same assets recommended to clients requires careful navigation of compliance and regulatory frameworks. These measures exist to protect investors from unethical practices like “front-running,” where unscrupulous advisors manipulate stock prices to their advantage at the expense of their clients. While these regulations add a layer of complexity, they are essential for maintaining trust and integrity in the financial industry. Regardless, a CFPs portfolio should be transparent.

The Core of My Investment Philosophy

At the heart of my investment philosophy is the belief in asset allocation and diversification. It’s a strategy that aligns with the needs and goals of my clients, and it’s the same approach I apply to my own portfolio. Here’s how I break it down:

Asset Allocation and Diversification

I advocate for a well-diversified portfolio as a cornerstone of a sound investment strategy. This involves spreading investments across various asset classes to mitigate risk and capture opportunities in different market environments. For my clients, I develop customized models—equity and fixed-income models—that consider their risk tolerance, time horizon, and specific goals.

For instance, some clients may prefer a heavier weighting in equities for higher growth potential, while others might opt for a more conservative approach with a focus on fixed income. My own portfolio is similarly tailored, reflecting my unique preferences and risk profile. The underlying investments might be consistent across portfolios, but the allocation percentages vary according to individual needs.

The Role of Cash

Cash is an integral component of any investment strategy. I aim to ensure my money is always working for me, and I advise my clients to do the same. With interest rates currently favorable, options like money market accounts, treasury bills, and CDs offer attractive returns with minimal risk. While these conditions may change as the Federal Reserve adjusts its policies, having cash reserves that generate returns is a prudent approach, as should be part of any CFPs portfolio. .

The Fun Side of Investing: Asymmetric Risk

Beyond the traditional asset allocation model, I incorporate a “fun” element into my portfolio—investments characterized by asymmetric risk. This strategy involves committing a small portion of capital to opportunities with significant upside potential but manageable downside risk. It’s a calculated risk that can lead to substantial rewards without jeopardizing financial stability.

Real Estate Investments

Real estate is a key area where I apply this principle. Whether through direct ownership, private placements, or limited partnerships, real estate investments offer a tangible and potentially lucrative investment avenue. However, the critical factor is ensuring the investment generates positive cash flow from the start. It’s essential to avoid properties that drain resources monthly, banking solely on long-term appreciation. Cash flow is vital for managing unforeseen expenses and mitigating risks.

Cryptocurrencies

Cryptocurrencies, particularly Bitcoin, also feature in my investment portfolio. I believe in the underlying technology and the potential future of digital currencies. Despite the volatility and skepticism surrounding crypto, I see it as a valuable addition to a diversified investment strategy. Engaging in this space requires an open mind and a willingness to understand the intricacies of blockchain technology.

Art and Collectibles

Art and collectibles offer another avenue for asymmetric risk investments. The art market can be lucrative, with opportunities to own fractional shares in masterpieces by renowned artists like Jackson Pollock, Van Gogh, or Banksy. While not everyone can afford a multi-million-dollar painting, platforms exist that democratize art ownership. Whether it’s art, collectible cars, or fine wines, these investments provide a fun investment for a passionate investor and the potential for financial gain.

Maintaining a Balanced CFP Portfolio

Despite the allure of high-risk, high-reward investments, the bulk of my portfolio as a CFP remains in more traditional, “vanilla” investments. This conservative approach ensures a stable financial foundation while allowing room for growth. Here are some core principles I follow:

Diversification: Spread investments across different asset classes to minimize risk.
Risk Management: Ensure risky investments are limited to a small portion of the portfolio.
Regular Review: Continuously assess and adjust the portfolio as circumstances and markets change.
Financial Goals Alignment: Keep investments aligned with long-term financial objectives.

Adapting to Change

As an investor, it’s crucial to stay informed and adaptable when it comes to an investment portfolio. Markets evolve, new investment opportunities arise, and personal circumstances change. Regularly reviewing and adjusting the portfolio ensures it remains aligned with current goals and market conditions.

My approach emphasizes flexibility and resilience, allowing for strategic adjustments without losing sight of the core investment principles. This adaptability is crucial, particularly in a rapidly changing financial landscape.

Conclusion

There you have it, a backstage look into a CFPs portfolio. My investment strategy combines traditional asset allocation with innovative, risk-managed opportunities. By aligning my investments with those of my clients, I ensure transparency and shared interests. Whether exploring the potential of cryptocurrencies, the tangible value of real estate, or the fun of art and collectibles, my approach remains grounded in diversification and risk management.

For those interested in exploring these strategies further, I invite you to connect with us!

10 ACTIONABLE WAYS TO CUT TAXES NOW AND IN THE FUTURE

Posted on April 28, 2022September 12, 2025 by Brian Colvert

HOW TO CUT TAXES NOW AND IN THE FUTURE

If you just wrote a big check to the IRS, you may be wondering how you can prepare now to cut your taxes next April. We’ve got you covered. Luckily, there are several legal ways to reduce the amount of tax you pay each year that don’t just include adjusting your withholding. Here are 10, practical and actionable, ways to help you cut your next tax bill and those in the future.

1. UTILIZE YOUR RMD FOR YOUR CHARITABLE GIVING

If you are 73 or older, donating your Required Minim Distribution (RMD) to a qualified charity is a great way to reduce your tax burden. These donations are considered a qualified charitable distribution (QCD) and will not be taxed up to $100,000 per account owner.

A qualified charitable distribution can satisfy all or part of the amount of your RMD from your IRA. For example, if your required minimum distribution was $10,000, and you made a $5,000 qualified charitable distribution, you would only have to withdraw another $5,000 to satisfy your required minimum distribution.

The more you donate in this way, the more you can exclude and cut from your taxable income This is extremely helpful since RMDs are ordinary taxable income that will often push retirees into a higher tax bracket.

Qualified charitable donations are a great way to use up your RMD if you are planning to give to charity. However, keep in mind that it must be a check sent directly from an IRA to the charity.

Schwab allows you to have a checkbook on your IRA that allows you to write such checks directly from your IRA. Be aware, that all donations need to be sent/cashed by 12/31 of the tax filing year.

QCDs can offer big tax savings, as tax rates on regular income are usually the highest. Regardless of the tax benefits, designating this income for charity is a great way to begin or expand your giving and support the causes you care most about.

2. TAKE ADVANTAGE OF TAX LOST HARVESTING

There is always a silver lining, right? For market downturns, that silver lining is tax-loss harvesting. With tax-loss harvesting, you can use your loss to cut your tax liability and better position your portfolio going forward.

Here is how it works, in its simplest form:

First, sell an investment that is losing money and underperforming.
Next, use that loss to reduce your taxable capital gains. This can potentially offset up to $3,000 of your ordinary income for the tax year. (Any amount over $3,000 can be carried forward to future tax years to offset income down the road).
Last, reinvest the money from the sale into a different investment that better meets your investment needs and asset-allocation strategy.

This allows you to free up cash for new investments and mitigate a tax consequence.

As with anything tax-related, there are limitations. Please note that tax loss harvesting isn’t useful in retirement accounts because you can’t deduct the losses in a tax-deferred account. Additionally, there are restrictions on using specific types of losses to offset certain gains. A long-term loss would first be applied to a long-term gain. Then, a short-term loss would be applied to a short-term gain. You also must be careful not to violate the IRS rule against buying a “substantially identical” investment within 30 days.

The best way to maximize the value of tax-loss harvesting is to incorporate it into your year-round tax planning and investing strategy. We always recommend talking to a professional about your specific situation.

3. FUND HSA OR FSA

Health Savings Accounts (HSA) and Flexible Spending Accounts (FSA) allow pre-tax dollars to be set aside for medical, vision, and dental expenses, thus reducing your overall taxable income. Each has its own benefits.

An HSA is triple tax-advantaged, which means:

Contributions are made with pre-tax dollars
It grows tax-free (you can invest your contributions and earn interest)
Can be used tax-free for eligible expenses (

Another great thing about an HSA is that you can keep it forever. Funds roll over and never expire. On the other hand, an FSA is a “use or lose it” type of account. However, an FSA is still a good option because it is funded before tax and comes out tax-free. FSA are employer-sponsored so there is often less involved with enrolling and setting up the plan. As such self-employed filers are ineligible to open able to open an FSA.

Both HSAs and FSAs are good options to help cut and reduce your taxable income.

CONTRIBUTE TO A PRE-TAX RETIREMENT ACCOUNT TO CUT TAXES NOW

Contributing to a retirement plan may be one of the simplest ways to slash what you own to the IRS. Whether a 401k or an IRA, (learn the differences here), both offer tax savings.

4. MAX OUT YOUR 401K

If your employer offers a 401(k), maximizing your contributions is an excellent way to save for retirement while reducing your tax burden. To realize benefits on your next tax bill, contribute to a Traditional 401k rather than a Roth 401k.

A Traditional 401(k) allows you to contribute pre-tax dollars, which lowers your taxable income and can significantly decrease your overall tax liability. This type of account provides immediate tax savings, making it a strong choice if your goal is to minimize your current tax bill. While Roth 401(k) contributions grow tax-free, they are made with after-tax dollars and don’t offer the same upfront benefits. Additionally, contributing enough to receive any employer match ensures you’re fully leveraging this valuable opportunity to grow your retirement savings.

5. CONTRIBUTE TO A TRADITIONAL IRA

Additionally, if you are below the income limits, you can also contribute to a Traditional IRA. They are tax-deferred, meaning that you don’t have to pay tax on any interest or other gains the account earns until you withdraw the money. Contributions to a Traditional IRA are often tax-deductible. However, if you do have a 401k or any other employer-sponsored plan, your income will determine how much of your contribution you can deduct.

6. CONSIDER A CASH BALANCE PLAN

If you are a business owner or solopreneur and have a high income, consider a cash balance plan. A Cash Balance plan is a type of retirement plan that allows for a large amount of money to go in tax-deferred and grows tax-deferred. It is a great option for owners looking for larger tax deductions and accelerated retirement savings.

Cash Balance contributions are age-dependent. The older the participant is, the higher the contribution can be. It can be an extra $60k to over $300k (based on age and income ) on top of combined 401k/ profit-sharing contributions.

An attractive feature of a cash balance plan is that the company offering the benefit can take an above-the-line tax deduction on contributions. Above-the-line deductions are great for tax savings because they reduce income dollar for dollar.

CONTRIBUTE TO AN AFTER-TAX RETIREMENT ACCOUNT TO CUT TAXES IN THE FUTURE

While a 401k, Traditional IRA, and Cash Balance Plan can help curb taxes in the near term, we also recommend planning for future tax implications to help you cut your tax bill for years to come. Roth IRAs are retirement accounts that are made up of your AFTER-tax contributions. However, they offer tax-free growth and tax-free withdrawals.

7. GROW TAX-FREE WITH A ROTH IRA

Again, Roth IRA contributions are after-tax, so you can not deduct your contributions. Nevertheless, your distribution will be tax-free and penalty-free at age 59 ½ Something your future self will thank you for! Another benefit is that a Roth IRA isn’t subject to RMD requirements either.

Your Roth IRA contribution limits are based on your filing status and income.

There are definitely some potential tax savings here, especially for those just starting out. It makes sense to pay taxes on the money you contribute now, rather than later, when your tax rate may be higher.

8. CONSIDER A BACKDOOR ROTH

A Backdoor Roth allows people with high incomes to fund a Roth, despite IRS income limits, and reap its tax benefits. Could it be right for you?

In short, you open a traditional IRA, make non-deductible (taxable) contributions to it, then move that Traditional IRA into a Roth IRA and enjoy the tax-free growth.

It is important to note that you can not have any money currently in an IRA, SIMPLE IRA, or SEP-IRA to make this work properly. There are more complexities involved in setting this up, and we recommend talking with a CERTIFIED FINANCIAL PLANNER™.

9. ROTH CONVERSION

A Roth Conversion involves the transfer of existing retirement assets from a traditional, SEP, or SIMPLE IRA, or from a defined-contribution plan such as a 401k, into a Roth IRA.

You’ll have to pay income tax on the money you convert now (at your current tax rate), but you’ll be able to take tax-free withdrawals from the Roth account in the years to come

You can also use market downturns as an opportunity to do a Roth Conversion. If your IRA goes down in value because of market fluctuations, you could convert the account to a Roth. This will allow you to pay a smaller amount of taxes because the account is down in value. Then you’ll have the money in a Roth when the market recovers, which would then be tax-free.

While there is no predicting what the tax brackets and tax rates will be in the future, if taxes go up by the time you retire, converting a traditional IRA and taking the tax hit now rather than later could make sense in the long run.

10. PAY ATTENTION TO THE CALENDAR

Lastly, from a tax perspective, there is a big difference between December 31 and January 1st. While some things, such as IRA contributions can be made up until the filing deadline, many must be done during the tax year, like qualified charitable distribution.

It is important to plan as far in advance as possible to help minimize your taxes. We recommend meeting with a tax professional and your financial advisor throughout the year.

>> Check here for the most current contribution limits, dates, deadlines and more! <<

The key to lowering your tax bill is to plan ahead and cut your tax liability in a way that makes sense for you. It’s impossible to know what regulations, changes, and updates will go into effect during any given tax season, but rest assured that we’ll be here to help you plan. Schedule a free consultation call with one of our CERTIFIED FINANCIAL PLANNER™ professionals today!

Until then, take these tips to heart and remember that reducing your taxes isn’t an impossible task.