As the wealth management industry approaches retirement age, the idea behind succession planning continues to bring the stress of inadequate solutions to the space. Corey Kupfer offers his thoughts on the trends and succession planning options that are available to advisors given different timelines:
Corey Kupfer, director of Entrepreneur Services at consulting firm MarketCounsel, said that “on top of clients being advisors’ primary concern “the industry has done a poor job of bringing in, training up and hiring younger advisors”
“Given enough time is available before retirement, some may hire someone for internal succession, ensuring it’s the right fit, taking time to properly train and, over time, transition the client relationships,” said Kupfer. He said “other advisors find it’s a better fit to look to acquire firms or to be acquired—traditionally or as a tuck-in—to solve the succession dilemma.”
“If only a year of two of retirement planning is a viable timeline—perhaps unexpected health issues became a reality and retirement was forced sooner than expected—then the options become severely limited,” according to Kupfer.
“If you’re down to a year or two and you’re down to nothing, external sale is one of the only options you have left,” Kupfer said. And while many would prefer to retire sooner rather than later, he added that “there is largely no inherent limit as to when you need to stop working. We’re not loading trucks here. [Wealth management] is a profession where advisors can work well into their 70s.”
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