With more advisors leaving the industry than entering it, an internal candidate may be the best choice of successor for some advisors. If you've been working with a junior advisor who is clearly cut out to be your successor and the two of you can sustain a healthy relationship, consider yourself lucky. But no matter how perfect the fit seems, be careful to avoid the succession pitfalls discussed here. Without a realistic time frame or a clear plan for how the transition will be made, you may find yourself with no successor at all.
Commonwealth Financial Network does not provide tax or legal advice.
Joni Youngwirth is the managing principal of practice management at Commonwealth Financial Network®, member FINRA/SIPC, a registered investment adviser, in Waltham, Mass. She can be reached at [email protected].