Practice

It may seem like a no-brainer for RIA owners to look within the firm when they retire. Yet this assumption overlooks critical aspects of what an internal succession plan actually entails, says consulting executive David DeVoe.

By taking the right steps, advisers can convince loyal clients to follow them out the door.

Advisers who impress senior management can sometimes walk away with bigger offers.

Time, talent, terms and treasure should be on the checklist of those planners exiting the business.

Clients who turned 70 1/2 this summer have to act fast on their distributions to avoid paying a hefty penalty to the IRS. Plus, giving away stocks versus selling them.

Some worry that hiring interns will be too costly or time consuming.

When more clients live ever longer lives, what's an adviser to do?

"A sooner-than-expected hike could result in these stocks trading up sharply, but the options market is largely discounting / overlooking this possibility," strategists wrote in a client note.

Investors should understand that market volatility will remain a risk to their portfolio, and investing in low-volatility funds does not guarantee protection.

The advisory group decided that operating as an RIA was a better option.