Expert: Paul Henneman - 7/7/2011

Question
We are concerned that the investment company that my mother is using has only succeeded in losing her $130,000.  It seems that what they invest her money in doesn't do anything, so why don't they invest it where it would?  I understand the uncertainty of the stock market.  The broker search I did came up without problems, which is good.  Can she take all her money from them and open another account with another firm?  Is there a penalty for this? Thank you for your help.

Cindy

Answer
Cindy,
  Thank you for your question!  Yes, your mother can absolutely open an account at a different firm, and transfer her funds over, typically without any penalty. You are right that the stock market is uncertain, but that is what you are paying a professional financial advisor to figure out.  If you are not happy with that advisors performance, absolutely move it somewhere else.  The new firm should make it very simple for you, and may even  handle all of the interaction with the old advisor so you don't have to make an unpleasant visit to inform him you are leaving.
  I wish you the best,

Sincerely,
Paul Henneman
President
ValuEngine Inc
www.ValuEngine.com