Reality: Not all advisors own their book of business, and if they
do, most spouses are not in the business with them and are not in
a position to take over the business, or to take charge of selling it.
Estate sales typically result in the buyer paying only half what they
would have if the Advisor had still been alive to help manage the
transition of clients.
Myth #7: “I work independently. I am very good at what I do and
no one else could look after my clients as well as I do.”
Reality: While you may have established strong relationships with
your clients and believe you are providing the best service to them,
there is always room for improvement. By working with a team of
professionals, each sharing their own unique talents and areas
of specialty, you could better serve your clients with professional
excellence, outside of your areas of expertise. You could also
expand your practice and benefit from multiple streams of revenue.
Myth #8: “Succession Planning is easy. All I have to do is find the
right buyer, or the right junior associate to mentor.”
Reality: It’s not as easy as you think. How will you find someone
you trust to have your clients’ best interests at heart? Will your
clients like working with them and stay with the new advisor?
Are you prepared to train a junior associate by yourself to take
over your business? Are your business and client records in good
shape? Do you have good systems in place to deal with everything
from marketing, to processing business, to client care?
Myth #9: “I’m too old to start Succession Planning. Besides that, I
have a good stream of revenue now. Why would I sell my business
when I am making such a great income? I think I’ll just keep
working with my clients until I die.”
Reality: It’s never too late to do what you might have done or
to become what you might have been. Over time, and without
sustained attention, a book of business can shrink as clients find
better value elsewhere. And as you age, so do your clients. When
they pass away, will their beneficiaries continue to do business
with you? Most advisors have not done a great job connecting
with their clients’ family members. As baby boomers pass away
over the next 10-20 years, trillions of dollars will be inherited by
the next generation, but the money is not likely to continue to be
managed by the original advisor if he/she has not made an effort
to be connected with his or her client’s children.
Myth #10: “Succession Planning is something I have to figure out
on my own.”
Reality: As advisors, we can work together to solve the
Succession Planning challenges we face. There are several great
resources in Canada to help you plan your ideal succession plan.
At National Best, we offer 3 types of Succession Plans: the Quick
Sale, the Gradual Transition and the nbLegacy Program. Visit
www.nbAdvantage.com for more information on Succession
Planning and find out what you need to do to create YOUR ideal
Succession Plan.
About the Author
Maria Lizak is co-founder and an Executive Business Director with National
Best Financial Network, a network of independent insurance advisors
and financial services professionals working collaboratively to empower
advisors and their clients to succeed. She is also a licensed Dealing
Representative with Pinnacle Wealth Brokers, one of Canada’s largest
Exempt Market Dealerships. Maria holds her Ph.D. in Clinical Psychology
from the University of Saskatchewan, where she specialized in Sense of
Community and Stages of Change.
For more information contact:
Maria Lizak
maria.lizak@pinnaclewealth.ca
“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.”
