One Big Advantage Big Companies Have Over Independent Financial Advisors

There are a lot of advantages to being an independent financial advisor. You get to pick and choose your clients. You are completely in charge of how you run your business. You can set your hours (although 24/7 hours aren’t unheard of for most financial advisors!). And you get to decide when it’s time to retire and move on from a career that you’ve loved. The big financial advising companies have a major advantage over your independent business, however: succession planning. Large financial advising corporations know the importance of succession planning for financial advisors and they’ve made an art out of it. There are solid plans and processes in place that manage the retirement of a financial advisor from the business without disturbing their client’s portfolio or losing their business. It’s an advantage that more independent advisors need to be bringing to their own business.

Why Succession Planning is an Advantage

Good succession planning for financial advisors meets the needs of all of the parties involved:

• It helps the advisor retire with the peace of mind of knowing their clients are being well taken care of by qualified professionals.
• It helps the clients feel confident about the safety of their financial portfolio and meeting their financial goals.
• It helps new financial advisors build their book and find new clients.
• It helps the company retain their clients and keep newer employees engaged.

The advantages are huge. Succession planning means that everyone is aware of what’s happening now and what needs to happen next in order for an experienced and retiring financial advisor to leave the business. No one feels left in the dark and no client feels like their money isn’t being properly managed. The results:

• Lower costs. The company doesn’t have to launch expensive campaigns to bring in new business or to find new financial advisors to handle client portfolios.
• Happier clients. Clients who are happy with the way you handle their money are going to recommend your services to their friends and family. Word-of-mouth advertising is still the best advertising that there is available.
• Engaged and active employees. When new financial advisors know there are opportunities for growth, promotions, and additional income, they’ll be much more likely to be engaged and give it their all for their work performance.

How You Can Get the Same Advantage

These aren’t exclusive benefits for large financial advising companies. Your small, independent financial advisor business can get the same advantages with a tried-and-true succession plan. Though your needs may be slightly different than those of a larger company, you’ll still reap the benefits of planning for your retirement.

• You’ll be able to sell your company for more money. This can be a huge boost to your retirement fund at the end of a long and successful career. When your business has been set up to be handed over to a new advisor, it’s worth more of an investment. That’s more money in your pocket.
• You’ll be able to retire with peace of mind. Good financial advisors don’t want to walk away from their clients and leave them in the lurch with their portfolios. When you retire, you want to know that your clients are being managed by someone who knows how to help them meet their financial goals.

If you want to bring the same advantages that large corporations have thanks to succession planning to your business, we can help. We work with independent advisors on their retirement plans and we can help you implement a succession plan that has been proven to work. Get in touch with us today to get started on your retirement plan.