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Explore TAG Advisory Services’s latest blog posts, expert advice, news, and commentary.* Learn more about the features of our innovative blog here.

While most advisors recognize the value of developing and implementing a business continuity and succession plan, fewer than 30% of advisors have a formally documented plan in place and the regulators are starting to take notice. It’s akin to the plumber’s own pipes leaking — or the shoemaker’s kids going barefoot. Just as sticking buckets under the leaks or telling the kids to wear flip flops isn’t a viable long-term solution, neither is ignoring the inevitable time when you’re ready to step away from your practice to relax and explore other pursuits. Or worse: when you’re forced to do so...

Five Reasons Advisor Succession Plans Fail

Financial advisors help their clients plan for the near- and long-term future. And yet many of these same advisors — one study suggests 60% of advisors within five years of retirement — have not taken time to create succession plans for their own business. Gary Campbell at Forbes thinks it’s likely that many of these advisors have similar reasons for delaying creating succession plans as their clients offer for waiting to get serious about their own financial plans. Many experts caution that waiting too long to develop and execute a succession plan can delay an advisor’s exit strategy for years....

It’s Time RIAs Got Serious About Succession Planning

According to Gary Stern at RIAIntel, Resident Investment Advisors (RIAs) spend their careers helping clients to achieve and maintain strong financial health. Yet many RIAs give little thought to protecting their own financial health through the creation and implementation of succession plans. A range of factors is at play: Many advisors are working well past retirement age — even into their 70s — and have no plans to retire Other advisors feel that the informal succession plans they’ve created will suffice Some advisors have given little thought to their own mortality, choosing to bury their heads in the proverbial sand...

Making The Transition From Financial Advisor To Business Owner

TAG Advisory Services's Insight

This podcast features Julia Carlson, founder and CEO of Oregon-based Financial Freedom Wealth Management Group. She shares her personal experience of an unexpected life event that resulted in a quick transition from the firm’s lead advisor to its business owner instead. Carlson talks about the real-world challenges of trying to let go of the significant control over your own businesses when life throws a curveball.

Article Excerpt:
#FASuccess Ep 164 with Julia Carlson on how transitioning out of a financial advisor role and adopting EOS helped give her time to focus on growing her firm.  

‘There’s a big, big problem’: Unrealistic Valuations Stifling RIAs’ Succession Plans

TAG Advisory Services's Insight

Carla McCabe, valuation expert and vice president of Truelytics, says that advisors are robbing themselves of finding external buyers by demanding too much money for their book of business. She says the best succession plans result from 7 - 10 years of strategy and preparation — and regular updates as things change.

Article Excerpt:
Valuation expert Carla McCabe said at the Investments and Wealth Institute conference Monday are overvaluing their businesses.  

What Every RIA Should Know About the Shifting Regulatory Landscape

Article Excerpt:
  Part of putting clients first may be knowing what will happen to them if you get hit by a bus.  

Connecting with the Client’s Next of Kin

financial advisor giving advice
Over the next 25 years, an estimated $68 trillion is expected to pass from the Baby Boomer generation to their millennial heirs (according to research by Cerulli Associates). While this may be a signal of healthy activity for the financial advisory industry, unprepared advisors could be in big trouble if they are not mindful of one key ingredient: retaining their clients’ heirs! The relationships they’ve built with their clients are not necessarily going to translate over to their families, and therefore it’s critical that advisors begin building the foundations for these relationships now. Meeting the widows and children at the...

Improving Client Relationships By Helping Educate their Children

TAG Advisory Services's Insight

Most people with families will tell you that their main concern is protecting and providing for their children. While the clients themselves may have found their own success, they often find themselves struggling to pass on financial literacy and savvy to their children, which increasingly becomes a concern when thinking about ensuring their children’s financial well-being. This creates an excellent opportunity for the advisor to step in and provide bite-sized financial literacy education to help the client accomplish this; such examples might include teaching money-related concepts to children at an early age or otherwise passing along easily digestible financial lessons via email. By doing so, the advisor not only provides some much-needed peace-of-mind for the client but more importantly enhances his/her working relationship with the next generation as well.

Article Excerpt:
Resources help parents share appropriate financial lessons with kids from six to sixteen.  

5 Client Loyalty Strategies to Help You Retain More Clients

TAG Advisory Services's Insight

When it comes to retaining clients, there are a few tips that should always be at the forefront of an advisor’s mind. Once an advisor has established his/her client base, they may fall into the trap of becoming complacent by assuming that the client’s loyalties won’t be swayed. In reality, that’s not how true loyalty is built, and there is much more work that goes into maintaining a lasting client-advisor relationship. Because financial services are such a relationship-driven industry, going out of your way to share personal values, be transparent, and maintain regular communication while periodically stopping to gauge your client’s satisfaction through a series of checklists will take you far in building the long-term trust and loyalty that is the cornerstone of your business.

Article Excerpt:
  Discover five of the best client retention strategies that you can implement right away to boost client loyalty and retain more of your hard-earned clients.  

How to Retain Generational Relationships with your Clients

TAG Advisory Services's Insight

As the Baby Boomer generation continues to retire and pass their wealth down to their next of kin, the financial advisory industry must also prepare for a major transition of its own.

Since advisors often focus their attention on the main breadwinner in a family, when that key member passes away, the relationship with the rest of the family tends to fall apart as well. In fact, studies have shown that over 66% of children fire their parents’ financial advisors after inheriting wealth.

Ultimately, all successful client-advisor relationships are built on trust, so when advisors neglect to build a rapport with other members of their client’s family, it becomes incredibly difficult to retain that family’s business when the original client passes on. A few ways to accomplish this include involving the family’s children into financial discussions from an early age or encouraging their clients to bring their children into meetings with advisors when the time is right. An MFS client survey showed that 79% of respondents said such discussions were “extremely/very helpful” in retaining their parents' advisors.

By initiating these types of discussions from an early age, advisors stand a better chance of reducing the likelihood of client defection when the wealth transfer finally occurs, thereby maintaining generational client bonds.

Article Excerpt:
  The coming great wealth transfer of $30 trillion in assets from baby boomers to their heirs is creating challenges for clients and advisors alike.  

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