5 Ways Your Financial Plan will Secure Your Succession Plan
Dear Advisors,
“What does retirement look like for you?”
This is a question that we ask every one of our clients. When was the last time that you, the financial advisor, planned for your own retirement? It’s easy to think that there will always be time, until it’s too late.
At Ellevate Advisors, we believe that financial planning can go a long way towards securing a successful succession plan. Here are 5 reasons why.
You know what you need financially, when it’s time to sell your business. True financial planning requires an updated, reliable business valuation. We recommend working with an objective financial planner to also assign an accurate growth projection for your business, and ensure that you’re on track for retirement.
Your retirement timeline gives you a succession planning timeline. A good rule of thumb is to start your succession plan AT LEAST 10 YEARS in advance if you want to get the most out of your business. If you’re more than 10 years out, then your spouse and key employees need to know who would take over and how that would play out, if something happens to you.
You can build a succession plan that maximizes the value of your business. Your financial advisory firm is worth so much more if it doesn’t depend on you. We recommend developing processes and workflows so your team can run the business without you. A good succession plan gives you time to transfer all your client relationships to your next-generation successor.
Your spouse will support your decision. Working with an objective financial planner gives you and your spouse time to get to know each other again. Use this time to create a plan for retirement, that you and your spouse are both excited about. Financial advisors deserve to retire too. Like we tell our clients, there is such a thing as waiting too long to enjoy it.
Your clients will really appreciate it. Experiencing the financial planning process from the client’s point of view will help you improve your own services. Once you start your succession plan and add a next-generation advisor, both prospective clients and existing clients will have greater confidence in your team. They might even enjoy working with the new advisor more than with you!
A formalized, written financial plan won’t guarantee your succession plan. The difference comes from going through the financial planning process, talking about the big picture with your spouse, and taking time to think about your future together.
That will not only change your life. It will change your business. A succession plan that fits your financial plan will help you avoid the many unforeseen, costly, time-consuming mistakes which arise in all succession plans.
Warm regards,
Brooklyn
P.S.
At Ellevate Advisors, we believe that advisors deserve to retire too. What does that look like for you, your family, and your business? Let’s figure it out together! Click here to schedule an initial phone call today.