The majority of financial advisors do not have a business succession plan or a strategy for attracting younger advisors and clients, according to a survey by SEI.

The survey showed 68 percent of 100 advisors surveyed had no plan for selling their firms or passing them on to succeeding generations; 54 percent had no plan for attracting younger investors.

Of the 32 percent of advisors with succession plans, 39 percent said they are not sure whom they will transition their firm to; 47 percent plan to sell to an identified internal buyer; and 14 percent plan to sell to an outside buyer, according to the survey.

“It’s important to have a plan in place to develop the next generation of leaders at your firm and to take a strategic approach to securing the next generation of clients your firm will serve,” says John Anderson, head of practice management for SEI Advisor Network, which provides financial advisors with wealth management services.

Only 3 percent of advisors are under the age of 30 so there is intense competition for young talent, according to SEI.

That means it's important to establish a good working environment for young, up-and-coming professionals so they can help attract young investors, according to SEI. Also, younger investors are hungry for information, which creates an opportunity for advisors to build educational programs.

Firm owners should make any changes necessary in processes, client service, technology or transparency so that a new owner can take over with limited interruption, according to SEI. In addition, firm managers should do more than investment management and provide a wide array of services to drive a firm’s value.

SEI is a provider of investment processing and investment management business outsourcing solutions for financial advisors and others. It manages or administers $458 billion in mutual fund and pooled or separately managed assets. The survey was taken of 100 financial advisors.