Financial Advisors Must Have a Succession Plan

Financial Advisors


Financial Advisors Must Have a Succession Plan


and article InvestmentNews’ Jeff Benjamin discussed the need for succession planning, especially as nearly 100,000 advisors are expected to retire over the next decade. In total, they are estimated to control his $10 trillion worth.

45% of this group plan to transfer ownership to employees or family members. About 30% are looking to move out and 25% do not have a solid succession plan. According to industry insiders, this is a big challenge for the industry, especially since succession planning takes time to prepare. In addition, fewer young people are entering the industry, requiring guidelines for alternative scenarios.

Even in the case of a sale, there are complexities and contingencies that need to be taken into account, such as client comfort and financing such transactions. Internal transitions can also result in unforeseen events, such as souring relationships with prospective owners and shifting strategies, or advisors being hired by other firms.


finsome: Financial Advisors need succession planning. This is especially important given the wave of retirements expected over the next decade.

  • advisor
  • client
  • Wealth management

The views and opinions expressed herein are those of the authors and do not necessarily reflect those of Nasdaq, Inc.



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