Maria Lizak, PhD
Private Market Specialist
Pinnacle Wealth Brokers Inc.
Myth #1: “I’m too young to think about
retirement or to start Succession Planning.
I still have lots of time to come up with a
Reality: None of us knows how much time
we have. As financial advisors we know that
disability or death can strike at any time.
Many Canadians are forced into retirement
sooner that they thought they would be due
to unexpected circumstances. It is important
to manage the risk to protect yourself and
your loved ones, and to maximize the value
of your business.
Myth #2: “Succession Planning and Retirement
are synonymous. Succession Planning
means retiring and since I am not ready to
retire anytime soon, I don’t need to begin any
Reality: Begin with the end in mind.
Succession Planning starts well before
retirement. YOUR ideal Succession Plan
may not even involve retirement. A carefully
thought out, well executed Succession Plan
will let you can stay as involved as you like
in your business and the industry.
Myth #3: “Succession Planning and Retirement
are distinct events in a person’s lifetime.”
Reality: Succession Planning and Retirement
are a process. Like many other processes of
change, you will likely go through 5 distinct
stages: Pre-Contemplation (not thinking
about it), Contemplation (thinking about it),
Preparation (preparing for it), Action (doing it)
and Maintenance (making any adjustments
that need to be made).
Myth #4: “Succession Planning is about
finding someone to buy my book of
business. It means selling for as much as I
Reality: There are other options besides
selling your book of business that have the
potential to maximize the income you receive
and ensure your family continues to receive a
stream of income after you are gone.
Myth #5: “My practice is a valuable asset.
I should be able to get a good price for it.”
Reality: Most Advisors over-estimate what
their business is worth to others. Your
practice is much less valuable to others
than you think it is, especially in the case of
a forced sale (due to health concerns, family
circumstances, or an estate sale).
Myth #6: “I own my book of business.
My spouse could sell it if anything ever
happened to me.”
Every advisor will leave the business
one day due to retirement, career change,
disability or death. Do you have a Succession
Plan? Consider these questions:
• Is the business getting tougher?
• Are client demands increasing?
•Are compliance and regulatory
requirements constantly changing?
• Are you facing health or family
• Are you still enjoying your business?
• Do you want to retire?
• Do you have a succession plan?
What if you die or become incapacitated?
• Can you (or your heirs) sell your book
of business, after the fact?
• Will your residual income continue for
you or your loved ones?
• Who will inherit your book of business?
• Will your clients be well served?
• What kind of legacy will you leave?
This article will explore the myths about
Succession Planning and Retirement. Find
out why you should retire one day WITHOUT
selling your business.
MARKET INSIGHTS: SUCCESSION PLANNING AND RETIREMENT
Advisers and the Myths of Succession Planning and Retirement
- why you should retire WITHOUT Selling your Client Book
By Maria Lizak
10 Myths about Succession Planning and Retirement