Consultants to financial advisors have been sounding the alarm for years: without a clear succession plan in place, both clients and advisors face significant risks if the advisor were suddenly unable to continue working. According to the article in the BBJ, “advisors, should they be forced to suddenly step down, risk sending their clients and employees into a panic — and watching their hard-won book of business, built over decades, quickly lose its value.”
And yet, fewer than a third of advisors within 5 years of retirement have a plan in place!
Many advisors are so passionate about their work that they believe they’ll literally “die in their boots.” While that may sound admirable, not having a formal succession plan in place will leave not only clients but also family members who might depend on the business, in the lurch. The problem is, many advisors don’t know where to start.
The Boston Business Journal interviewed TAG President and CEO Bill McCance about our innovative solution: Hire a squad of millennials to help older advisors transfer their clients to a new generation. Trust Advisory Group will buy other advisors’ entire book of business and kick off the transition from the original advisor to a TAG 2.0 member. Alternatively, a TAG 2.0 member could take over part of an advisor’s book, as a trial to see if the advisor finds TAG 2.0 a good match.
Ultimately, advisors can transition their book of business to TAG in any manner they feel comfortable – whether that is slowly handing over their clients in phases, or all at once. The retiring advisor works with the TAG 2.0 member to make the transition smooth for both the client and the new advisor, so when it comes time to fully hand over the reins, the retiring advisor feels comfortable that their clients are in good hands.