This article comments on advisor succession planning from the client’s standpoint. Many clients are concerned about the fact that their aging advisor may not have a credible succession plan in place. Clients need to be assured that their advisor has carefully chosen a designated successor. They need to have confidence in the skills and integrity of the advisor who will be acquiring their account. We routinely see older advisors who’ve waited too long to select a successor see their practices shrink as clients jump ship. Nervous clients often bail out and choose younger advisors or those who already are part of a team.
If you’re an advisor without a succession plan-please call us -we can help. We have a number of practice monetization options through which you can transfer your book to a successor that you pick and be rewarded for your lifetime of hard work in establishing your practice.
Wealth Advisers are an aging group. Yours may retire just when you need him most. Here’s how to handle the transition.
By Dan Kadlec @dankadlecJuly 18, 2013
If you have a financial adviser, odds are this person is contemplating his or her own retirement, as well as yours. That doesn’t mean you’re being cheated out of the attention your finances deserve. But it does suggest that your account will be handed off to a colleague sooner than you may expect.
Like postal clerks, clergy, and bus drivers, wealth managers are growing old in a line of work with a slow replacement rate. The average age of a financial adviser in the U.S. is 50, reports consulting firm Accenture. Meanwhile, financial advisers past the age of 60 control $2.3 trillion of client assets.
Most alarming: These trillions of dollars will be up for grabs over the next decade as fewer than one in three advisers has a formal plan for handing off their client list. You could be part of a bidding war as rival firms vie for your adviser’s book of business, or you may be handed to an inexperienced financial adviser who inherits the account at your old firm.