Do You Need to Dump Your Financial Advisor When You Move States?

There are plenty of things that need planning when you move states, and finding a new financial advisor is often at the top of that list. But as digital solutions like secure videoconferencing, e-signatures, and cloud-based financial planning platforms becom more prevalent, is it truly necessary to switch out your advisor due to distance?

According to experts, the answer is not necessarily.

“Most financial advisors are licensed to operate in multiple states or can apply for the necessary licenses to continue serving clients who relocate,” said Jake Falcon, chief executive officer and founder of Falcon Wealth Advisors. “If your advisor is registered with the SEC (rather than just a state), they can typically work with clients across the U.S.”

When Your Financial Advising Relationship Can Go the Distance

This is a route more and more financial advisors seem to be taking. The year 2024 saw a record-high number of investment advisors registered with the U.S. Securities and Exchange Commission (SEC), with 15,870 in total. That figure has been steadily rising since 2011.

There are plenty of reasons why financial advisors want to be nimble enough to help you establish roots in a new state. One big reason is customer retention.

“If you’ve built a strong relationship with your advisor, they already understand your financial goals, risk tolerance, and long-term plans. That continuity can be hard to replace,” Falcon said. “Your advisor may have specialized knowledge or experience that’s not easily found in your new location—especially if you’re moving to a smaller market.”

Ryan T. McLin, founder and lead financial advisor at Impact Wealth Group, agrees, adding that it is invaluable to be able to “work with someone who knows your financial history, goals, obstacles, and quirks.”

“You already have someone you trust, they are responsive to you, and stay up to date on your needs, wants, and wishes; don’t underestimate how hard that can be to find again,” McLin said.

But just because your advisor can work across state lines doesn’t always mean they should.

Advantages and Disadvantages of a Long-Distance Advisory Relationship

According to Falcon, you should consider dropping your advisor when they’re not SEC-registered and are only registered on a per-state basis. If that advisor isn’t registered in your state, there is a chance that if they continue to advise you, they’ll be doing so illegally.

And even if your advisor offers to reregister in your new state, there are significant risks that come with that.

“A local advisor might be more familiar with state-specific tax laws, estate planning rules, or real estate markets that could impact your financial strategy,” Falcon said. “While virtual meetings are convenient, some clients prefer the rapport and trust that come from face-to-face meetings, especially for major life decisions.”

McLin also says virtual meetings can be great, but major time zone changes can be tough hurdles to overcome. 

“If you are moving from Oregon to Virginia, that three-hour time difference might be too cumbersome to make a virtual relationship work,” he says.

The Bottom Line

At the end of the day, the hassle of an interstate move doesn’t always need to come with the headache of finding a new financial advisor. However, the prospect of replacing your current advisor should at least be considered while drawing up moving plans.

“You don’t have to dump your advisor just because you’re moving. But it’s a great opportunity to reassess whether your current advisor is still the best fit for your evolving needs,” Falcon said. “If they’re licensed appropriately and continue to provide value, there’s no reason distance should be a deal breaker.”