Succession planning

A surprisingly simple business model could deliver financial advice to a much broader segment of the American population.

"As breakaway brokers continue to seek the benefits of the independent RIA model and a large number of RIAs near retirement, we're seeing unprecedented opportunities to create mutually beneficial relationships between advisors," said Ben Welch, Ameritrade's director of advisor business development. "RIAConnect meets the increasing demand for a more effective way to connect firms and helps support advisor growth potential."

In an effort to give smaller RIAs access to a broader array of services, Ron Carson has launched Carson Institutional Advisory. The new platform includes a succession planning strategy as an added attraction.

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?

A strong leadership plan will not only help you identify the right successors, it is also the centerpiece of any successful transition.

It's not always easy to work with highly successful business owners, but the effort can be rewarding.

The ranks of the under-30 generation of planners are swelling - and they're ready to make an impact.

Fidelity has introduced the “Realizing the Value in Your Firm” program, which includes a series of workshops being conducted nationally to help advisors understand succession planning options.

At the NAPFA National conference, a panel of advisors of varying ages, discussed how they have succeeded with the tricky task of planning and executing a succession.

The founder of Veritable, the country’s third-largest RIA, says his firm’s new partnership with wealth management giant Affiliated Managers Group is part of a broader effort to build a business that can last for generations.

Succession planning is on a lot of advisors' minds right now. But it's not only owners who need to prepare for succession — employees also need to get ready. Financial Planning talked to Deena Katz, chairwoman of Evensky & Katz and associate professor of personal financial planning at Texas Tech, about her thoughts on this topic.

To be well prepared for succession, owners of financial planning practices should make sure employees are able to advance their careers within the firms. Firm owners should also learn how to manage Generation Y workers, because they’re going to be key to keeping practices alive.

Baby Boomers are getting older and so are their advisors which means it's high time to start planning for the next chapter for both parties. But it's easier said than done.

There’s no doubt that starting an advisory business can be harrowing, but finding good people to eventually take over your business may be even harder, says John Brackett, a regional director with Financial Network Investment Corp.