“I said to a client during a very difficult meeting that I was tired of discussing her financial planning issues,” Chiang says. “Although I immediately apologized for what I said, I knew instinctively that the end of my practice had arrived and it was time to exit.”
She notes that aging advisors find unique problems in rejuvenating the practice by finding younger clients, and they face a generation gap.
“It’s hard for an advisor in their mid-50s or older to talk with someone in their mid-30s,” she says. “It’s like talking to their daughter or son. It can be tough to advise them. Many adults are still mentoring or coaching their adult children even into their 30s.”
“It is a very personal decision that each advisor has to seriously consider as they age,” Butterfield says.
The Retirement Warning Signs
Chiang, who spent some two decades as an advisor, lays out in her book the most common reasons to leave:
*You’re exhausted from running the practice or maybe just bored.
*You have too many senior moments and you’re no longer at the top of your game.
*Business has peaked or stopped growing. You have very few new clients.
For her, the question of whether to rebuild or retire is simple.
“When you are no longer passionate about solving problems for clients, it’s time to retire,” she says.