CLS’s “Reinvent Your Practice: Alternatives to Traditional Succession Planning” explores the current state of succession planning in the advisor industry and the economic reasons why selling a practice may not make sense.
Omaha, NE (PRWEB) April 25, 2014
CLS Investments, LLC (CLS), a leading third party money manager and ETF Strategist, has released the sixth report within its AdvisorIQ education series.
CLS’s “Reinvent Your Practice: Alternatives to Traditional Succession Planning” explores the current state of succession planning in the advisor industry and the economic reasons why selling a practice may not make sense. The report also offers alternative approaches that are aimed to help the advisor transition into his or her retirement years, and steps necessary to implement a reinvention approach.
As part of the report, CLS interviewed numerous advisors and conducted market research in an attempt to identify succession planning issues for the industry, as well as the most ideal alternatives to traditional succession planning. Survey results showed that:
“… of 117 advisors surveyed, 61% expect to need $1.5 million or more to be able to retire comfortably, with 42% expecting to need more than $2 million. However, when asked how prepared they are to reach their goals, only 11% said they had achieved their funding levels and 48% said that they were less than halfway there."
To accomplish this goal of continuing to work toward their retirement years, advisors can “reinvent” themselves and their practices, rather than sell their firm outright, advisors can also consider working part-time and outsourcing many of the day-to-day aspects of running a firm. They could even bring in junior advisors and additional staff to continue growing the firm. As a result, advisors can continue doing what they enjoy, while slowing down over time, and thus, may not need a traditional succession plan.
The report concludes with actionable practice management steps advisors can take to create options for their future, including outsourcing investment management, employing various forms of technology, and putting in place legal agreements as well as developing new compensation and staffing systems.
The CLS AdvisorIQ education series captures innovative business management, marketing, and investment planning strategies through a series of industry reports and white papers. To learn more about or download CLS’s AdvisorIQ reports, please visit: CLSinvest.com/AdvisorIQ.
About CLS Investments
CLS is a third party investment manager, ETF strategist, and longtime trusted partner in the financial industry. CLS’s active asset allocation approach, customizable strategy offerings, and risk management expertise has led financial advisors to entrust their clients’ individual and qualified retirement plan portfolios to CLS since 1989. Today, more than 35,000 investors depend on CLS to help them reach their financial objectives.
For more information, please contact:
Nexus Strategy, LLC