Broker Check

Succession Planning For Financial Advisors

How Do You Plan to Pass the Torch?

How Do You Plan to Pass the Torch?

Welcome to our Succession Planning Resource Center, dedicated to addressing the critical aspect of planning for the future of your financial advisory business. With an aging demographic of financial advisors, the need for effective succession planning has never been more urgent. This page aims to present compelling statistics and insights, shedding light on the challenges and providing actionable solutions for a successful transition.

Statistics and Insights

  1. Average Age of Financial Advisors: The landscape of financial advisors in the United States is shifting, with the average age standing at approximately 55 years, according to Cerulli Associates. This underscores the impending wave of retirements and the necessity for comprehensive succession planning. (Source: Cerulli Associates, "U.S. Advisor Metrics 2020: Growth Among RIAs," June 2020).
  2. Projected Industry Departure: The CFP Board Center for Financial Planning projects that within the next 10 years, around 40% of all CERTIFIED FINANCIAL PLANNER™ professionals in the U.S. will reach retirement age. This percentage reflects the need for a proactive approach to succession planning to ensure a smooth business transition. (Source: CFP Board Center for Financial Planning, "Racial and Ethnic Diversity Among CFP® Professionals," July 2020).
  3. Unpreparedness for Succession: Shockingly, only 17% of financial advisors have a formal, written succession plan in place, as revealed by an InvestmentNews survey. This points to a significant gap in preparedness within the industry. (Source: InvestmentNews, "Advisers Are Unprepared for Succession, but Here's How They Can Get It Right," April 2021).
  4. Client Retention in Succession: Research from Pershing Advisor Solutions demonstrates that advisors who have executed a succession plan have managed to retain 80% or more of their clients during the transition in 62% of cases. This emphasizes the potential benefits of thorough planning for both advisors and their clients. (Source: Pershing Advisor Solutions, "The Succession Challenge: What's Your Game Plan?" 2019).
  5. Benefits of Early Planning: The Financial Planning Association (FPA) advocates that starting succession planning five to ten years before an intended exit yields superior outcomes. This proactive approach benefits both financial advisors' financial well-being and their clients' interests. (Source: Financial Planning Association, "Creating a Succession Plan," 2020).

How We Can Assist

At W Financial Advisors, we recognize the pressing need for well-structured succession planning in the financial advisory industry. Our commitment extends to providing the expertise and support you require:

  1. Tailored Succession Strategies: Our team collaborates closely with you to design a personalized succession strategy aligned with your long-term objectives. Whether you're considering a sale, merger, or internal transition, our approach is tailored to your unique needs.
  2. Mergers and Acquisitions Opportunities: We offer a range of options based on your timeline. If you're looking to exit the business within 1-3 years, our acquisition process can facilitate a smooth transition. If you're over 5 years away from retirement, we can explore merger opportunities to create a comprehensive succession plan. Options may vary, the key is understanding your choices.
  3. Financial and Legal Expertise: Our team of financial and legal experts  can help ensure that your succession plan adheres to regulatory standards while maximizing its effectiveness. We manage the intricacies, allowing you to focus on maintaining client relationships.
  4. Transition Support: Transitioning your business can be complex, but we provide comprehensive support throughout the process. From communication strategies to operational adjustments, we strive to ensure a seamless transition.
Take the Next Steps

Take the Next Steps

Succession planning is an indispensable part of a financial advisor's career journey. With industry demographics signaling imminent change, the imperative to prepare cannot be overstated. At W Financial Advisors, we stand as your partner in navigating this critical phase, securing the future of your practice and the interests of your clients. 

Initiate your succession planning journey with confidence by reaching out to us. We're eager to provide answers, insights, and a path forward tailored to your specific needs!