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Financial Advisor Succession Planning

Last week InvestmentNews published a story on advisor succession planning and the struggle advisors have in putting a plan in place. Current research from Cerulli Associates shows that there are approximately 118,000 advisors that are within 10 years of retirement. Of those advisors, 37% do not have a succession plan in place.

With this many advisors, approximately 44,000, that are in need of planning, there is no questions this is an area that deserves attention from advisors and broker dealers.

The advice I give every advisor I talk to is to start simple. Plan for the worst-case scenario first. This would be to put a continuity plan in place first, then move on to a succession plan. If you need help with this process, reach out to your broker dealer. A continuity plan is a simple document that allows your heirs to continue receiving compensation until they find a buyer for the practice. This is by no means an end all be all, but is a good place to start in your planning. Every advisor, no matter your age should have this agreement in place.

Jodie Papike

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