Succession Planning for Financial Advisors – Succession, LLC Helps Prevent the “Collapse” of a Noble Profession

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Succession planning for financial advisors has become one of the most serious challenges facing the financial services industry today; the absence of credible succession planning strategies for the senior financial advisor threatens to "collapse" the foundation upon which the industry was built. Succession, LLC completes the "Succession Advisor" project.

Succession Planning for Financial Advisors

Who will be my Successor?

The absence of credible succession planning strategies for the senior financial advisor threatens to "collapse" the foundation upon which the industry was built.

Succession Planning for Financial Advisors:

It is estimated that 10,000 baby boomers will turn 65 years old today—and every day for the next 18 years. In many cases, more than 55 percent of a financial firm’s advisory revenue may be coming from the efforts of this baby boomer demographic. What happens to the clients of these senior advisors once they retire? Will clients continue to be loyal to the manufacturer of the financial products originally sold by their advisor?

Anticipating the future succession planning needs of the advisory community and the client public, a company called Succession, LLC gathered input from a team of specialists representing many fields, using it to create the “Succession Advisor” project and ensuing strategy solutions.

The project dealt with challenging questions. For example, before addressing the issue of succession planning for financial advisors, the project dealt with scenarios often heard in discussions among family members, such as:

“I overheard you talking the other night and I’m confused. You’ve been telling me to hire your financial advisor and I don’t know why I should. Dad said he lost 45 percent of his portfolio; he is having a hard time paying bills and business is not good. In addition, your advisor is as old as you guys and will be retiring within the next few years. We have no idea who will be advising us after that. All things considered, why would I want to hire a financial advisor? Isn’t an advisor paid to help you not get into these situations in the first place?”

The “Succession Advisor” project determined that by answering such questions, the industry’s foundation could be repaired and succession planning strategies could be implemented for the senior advisor demographic.

The solution to the succession-planning problem relies heavily on the industry’s ability to attract smart, young, ambitious and technology-savvy talent—in other words, the ability to recruit a “farm team” to handle the flood of advisors who will be retiring over the next two decades.

This poses a huge challenge considering current economic conditions, the tarnished reputation of the financial services sector, tightening regulation and reduction in incentive based compensation.

Combine that with the client public’s access to 24/7 self-education resources, and you have a scenario that could collapse the distribution system of a financial services organization. Financial institutions are concerned about potential revenue losses, servicing capabilities and retention of clients that are no longer working with their personal trusted advisor.

Fortunately, a number of financial institutions have focused on this topic and are beginning to put protective measures into place. The “Succession Advisor” project helps the client public identify those advisors and institutions addressing the issue, from four different perspectives:

1.    Wealth Management Solutions
2.    Expense Reduction Resources
3.    Philanthropic Outreach
4.    Succession Plan Development

As the succession-planning dilemma plays out within the financial services sector, the client public is encouraged to ask their advisors if they qualify as a “Succession Advisor.” Those advisors who do may be in a better position to answer the original question of, “Why should I hire a financial advisor?”

Are we witnessing the collapse of a noble profession? Succession planning expert Succession, LLC, doesn’t believe so. With the “Succession Advisor” project and continued industry focus on the topic, a collapse can be prevented and a comprehensive remodeling can begin.

Company Information:
Succession, LLC, Founding Company est.1949, is a New York-based organization that serves as a resource to the financial advisory community in the areas of succession planning and securing the future of the financial service professional.

Leadership transitioned the focus of the company to “Succession Planning for Financial Advisors” in 2005.

Due to the aging demographic of the industry’s distribution network, Succession, LLC created a “toolbox” of succession planning resources for both the senior and junior financial service professional.

Media Relations:
Thomas Delamater
Delamater Media Group
(330) 437-5975

The Delamater Media Group reports and writes on interesting trends facing industries going through “change” due to the age demographic of their workforce and the client public served.

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Tom Delamater
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