Alternative Strategy for Retirement: Don't

Here's an alternative retirement strategy for advisors: Don't.

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Comments (1)
This article only tells half the story. "Never stop working?" Really? The author completely leaves out the fact that as advisors "scale back" and "slow down" in their practice - the marketing functions that they used to perform go by the wayside. A Junior advisor or a support staff cannot perform the rainmaking functions that the senior advisor does.

As a result - the client BASE of the practice tends to age along with the advisor. At some point - a 75 year old advisor with an average sized practice ($500K sale point mentioned) is no longer SELLABLE. Would I buy a book of business make up mostly of clients aged 70-90? Maybe - but I certainly wouldn't pay top dollar for it - that practice would be a fire sale option at best.

If an advisor has a son or daughter who is going to take over the business - then this strategy makes perfect sense. But going to work in a practice 2 or 3 days a week... barely doing what needs to be done - when the practice is basically YOU and a support team... BAD IDEA. Sell the practice when it is in its prime - get maximum dollar for it - and then go be a support advisor in someone else's practice or be a salaried financial planner if you still need an income.
Posted by Jon C | Friday, August 29 2014 at 2:06PM ET
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