Danielle Labotka, Ph.D., Behavioral Scientist for Morningstar, joined Julie Cooling, Founder and CEO of RIA Channel, at the 2026 Morningstar Investment Conference to discuss key findings from a Morningstar survey of 185 people who had previously fired a financial advisor.
Labotka highlights that 73% of respondents left the financial planning space altogether, while only 27% hired a new advisor. Despite these different outcomes, both groups cited similar reasons for firing their advisor. While dissatisfaction with investment performance and the cost of services were among the expected reasons, Labotka found that respondents more often pointed to issues surrounding the advisor-client relationship. These included feeling that they were not receiving quality advice reflective of their personal goals, lacking a strong relationship with their advisor, and feeling like they could not trust them.
Importantly, only 13% of those who left financial planning did so because they felt comfortable managing their finances independently. Instead, Labotka explains that many had expectations for the advisor-client relationship that were not being met. For those who went on to hire a new advisor, the decision was less about the numbers and more about finding someone they could trust to help manage their finances. She identifies three areas clients are seeking from advisors that can help improve client retention: personalized advice they can rely on, support in reaching their goals, and help improving financial decision-making.
For advisors looking to attract clients who have left a previous advisor, Labotka recommends focusing less on what went wrong in the prior relationship and more on what prospective clients are looking for now. She emphasizes the value of listening closely and demonstrating how personalized, goals-based advice and behavioral support can improve upon an existing financial plan.
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