As the advisory universe ages, it's inevitable that more advisors will retire, become disabled, or die. Just as inevitable, there will be more sales of interests in advisory practices or entire practices. But just how valuable will those practices be, with most clients drawing down rather than building up the assets that advisors manage?

"Advisors may experience unforeseen consequences down the road if they don't address key business issues such as the aging of their clients, continuity planning, and building scale," John Furey, principal of Advisor Growth Strategies, a consulting firm in Phoenix, told Financial Planning. Furey is the managing member of the Alliance for RIAs (aRIA), a study group of RIAs. A recent aRIA whitepaper, Creating Value and Certainty Within Your Independent Advisory Firm, spells out the age-old problem and offers some recommendations.

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