How to Fire a Financial Planning Client
At Amplified Planning, we take your professional development seriously. We recognize that being a successful financial planner isn’t just about growing your client base and being “technically” good at what you do. It’s also about managing relationships effectively and knowing what to do when client relationships need to end.
While it’s always challenging to consider ending a client relationship, there are circumstances where firing a financial planning client is necessary for your reputation, your firm, and even your sanity.
Read on to hear our tips on when and how to fire a financial planning client. We’ll also outline the next steps so you can properly offboard clients (for any reason).
5 Signs It’s Time to Fire a Financial Planning Client
1. Misaligned Values
A strong relationship between a financial planner and their client is built on shared values. If you find that your core beliefs and strategies consistently clash with those of your client, it may be time to part ways. This misalignment can totally impede the planning process and lead to frustration and dissatisfaction (on both sides).
Ex: You value long-term planning and your client values high-yield, high-risk, short-term investing.
2. Disrespectful Behavior
Respect is non-negotiable. If a client is regularly rude, dismissive, or worse — yells at you or your staff — it’s a clear signal that your work with them needs to end. A healthy working environment is essential, and allowing toxic behavior to continue only encourages shady characters. If you run or manage a firm, having rude clients can also demoralize your team and lead to turnover.
3. Doubt & Distrust
A financial planner’s advice is only as valuable as the trust a client places in it. This is why the CFP® professional’s fiduciary standard is so important! If a client consistently questions your recommendations or your motives behind them, that’s a concern. If they ignore your recommendations or plan entirely, it undermines the effort you’ve put in — and could potentially lead to poor financial outcomes for the client.
4. Unmatched Skillsets
Sometimes a client’s needs may not align with your area of expertise or available resources. Continuing to serve clients with situations you’re not sure how to support can lead to frustration and poor outcomes. You want the best service for your clients, and sometimes that service comes only by working with someone else. This is why having a network of peers and expert financial planners is so important!
5. Undervalued Services
This goes along with Point 3: Doubt & Distrust, with one key difference: While these clients may be respectful and interested in your thoughts, they don’t really understand the importance of each aspect of financial planning and would prefer to “skip those parts.” This might happen with insurance or estate planning, for example. However, if they do not value the proven elements of a strong financial plan, it’ll be difficult to achieve the results you (and they) want.
Do any of these scenarios sound like your financial planning client(s)? Difficult clients may come to you from time-to-time, but only you can decide who needs to be fired.
What to Do If You’re Afraid of Firing a Client
Nobody enjoys firing people (unless they’re insane). What should you do if you’re worried you need to fire a client and taking that step scares you?
1. Have an Open and Honest Conversation
Firing a client might feel like a dramatic step, so what can you do before that? Have a very honest conversation about the concerns, the challenges, and potential next steps (e.g. “If we can’t find a resolution to this, we will have to part ways.”) If you can’t find a solution together after that, it’s time to start the process of offboarding that client.
2. Own Your Space
Recognize your worth as a financial planner. Even if you are new, you know a lot and you know what’s best for you, your clients, and your firm/team. Remind yourself of your values and reaffirm that your expertise and time are valuable. You are entitled to choose clients who respect and align with your professional approach.
3. Admit Compatibility Issues
Sometimes, acknowledging that you are not the right planner for a client can ease the transition. This honest approach focuses on what’s best for the client’s preference or communication styles rather than personal differences or conflicts.
P.S. If you’re letting a client go because you lack expertise in their situation, that doesn’t mean you’re not an expert in your own right. An orthopedic surgeon wouldn’t be delivering babies; there’s nothing wrong with owning your strengths.
3 Steps to Fire a Financial Planning Client
The day has come — it’s time to fire that financial planning client. Take a deep breath and follow these three simple steps.
1. Hold a Conversation
Often, we see financial planners firing difficult clients via email. If they’re disrespectful and combative, this is the best approach. However, if you think they’ll be fairly reasonable about the news, you can schedule a face-to-face meeting (in person or on Zoom), or a simple phone call.
Let them know about the transition and that you appreciate their time with you. You don’t have to delve into all the gritty details, but clear communication is key. Explain your reasons where necessary, and maintain a professional demeanor to prevent burning bridges.
2. Provide Resources and Referrals
Offering referrals and resources can help ease your client’s transition. However, be mindful of the referrals you make — you don’t want to pass on a problematic client to your peers without warning.
3. Frame It Positively
Position the separation as a decision that serves your client’s best interests. It’s not just about what’s not working, but about what will work better for them elsewhere.
Fired the Client? Here’s How to Offboard Them
You did it! You’re so brave. Now that you had the hard conversation, it’s time to make sure all the small details are accounted for.
1. Stop Billing
Cease any ongoing billing immediately after letting your client know that you’re parting ways. If you’re parting ways because they are not paying on time or they have outstanding invoices, consult your contract or financial planning agreement to determine what steps need to be taken. This may include refunding fees, if appropriate.
2. Account Management
If you manage any of your client’s investment accounts, begin the process of delinking them. Inform your custodian that those accounts are no longer under your management.
3. Document Everything
Consult with your compliance officer to ensure that all legal and procedural requirements are met. Document all interactions with your client — and your reasons for termination. In the event that your client “makes a fuss,” this step will help protect yourself and your business.
A Course for Every Client Scenario Inside Amplified Planning CORE
Parting ways with a client is never easy, but it’s sometimes necessary to maintain the integrity of your practice and/or personal well-being. At Amplified Planning, we offer training, resources, and coaching to help financial planners develop the skills necessary to handle any client conversation.
Our goal is to ensure that you feel confident in every client interaction, from the first inquiry to the final goodbye.
Want to be prepared to address the full spectrum of client scenarios? Want to find ways to support clients who aren’t straight out of a textbook? Join Amplified Planning CORE today. You’ll see inside over 30+ client meetings and see how an expert CERTIFIED FINANCIAL PLANNER® navigates each of them. Plus, you can earn 50 CFP Board Standard Pathway experience hours for each course you complete. That’s easier than firing a client!
