You’ve Planned for Your Clients’ Future—What About Your Own?
Do you fall into the 25% of advisors without a formal succession plan?1 If so, and you’re age 50 or older, you might want to start planning to create business continuity for your associates and clients.
There are 100,000 advisors today controlling $10 trillion in client assets who will retire over the next 10 years.2 Of that group, 45% plan to transition their businesses internally to either another associate or a family member.3
With an internal transfer, it requires training second- and third-generation advisors and partners to buy out owners. The challenge with that is that there is a shrinking number of young people coming into the industry. And, an internal succession plan will likely require external financing.
Because you may need a longer runway to get a plan in place, including grooming qualified successors, now is the time for most to be creating a succession plan even if it feels overwhelming. Even if you’re younger, it’s still crucial to business continuity to plan ahead for the day when you step away from your firm.
Reasons Advisors Don’t Plan
If you’ve worked with the same clients for decades, it’s natural to be worried that they won’t receive the same level of care from someone else, so you may be putting off planning for the future. Or perhaps you don’t see yourself retiring anytime soon, or you’re just not sure how to value the full equity of your firm. These thoughts often cause planning paralysis that could leave you and your clients without a backup plan if something unexpected happens.
Benefit of Having a Plan — For You
Minimize the Risk – With a plan in place, you lessen potential business disruption for your clients when you are ready to retire or should you need to retire sooner than expected.
More Flexibility – If you plan ahead, you will likely have more favorable options when exiting your firm.
Benefit of Having a Plan — For Your Clients
Peace of Mind – If your client realizes you are near retirement and you communicate your continuity of service plan, it may boost their confidence in your long-term planning process.
Expanded Services – Not only can a succession plan help protect your clients’ legacies, but they will also have access to our expanded solutions on day one.
Should you ever be ready to sell your practice, Mariner Wealth Advisors can either buy your book of business or help you sell your practice to another Network advisor. We realize the process can seem daunting and that’s why we work to make the transition easy for you and your clients. For more information, reach out to [email protected].
1,2,3“Financial Advisors Ignore Succession Planning at Their Own Peril”
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