How to implement a successful transition

We are all going to age and, one day, will need to transition out of our profession. This shift can either be smooth and uneventful to our clients, or it can be jarring and unnerving, causing clients to lose confidence and seek out a new advisor.

I’ve observed many advisors who have retired and transitioned their clients and I’ve seen how to do it well and what mistakes to avoid. Furthermore, I’ve personally transitioned my client book to other advisors with great success.

Here are some things to consider as you begin to plan your practice with you:

Transition slowly: Ideally, give yourself, and your clients, a couple of years to complete the move to another advisor. This allows for ample time for your clients to get to know their new advisor and for them to share any feedback, both positive and negative, so you can adjust accordingly.

If you can plan far enough in advance, you can introduce a new advisor as a “new member of your team” who is there “to assist you in managing their affairs.” This can be a great way for clients to get comfortable with a new person without the fear that you’re dumping them on some advisor whom they don’t know.

Hold joint meetings: As you meet with your clients for their reviews, have the replacement advisor in every meeting and on every call. In addition, have a reason for the new advisor to reach out to your clients in between meetings, just as a way for clients to get comfortable with another individual.

Communicate in person: No client wants to receive an email from you stating they’ve been assigned to another advisor. While sending an email or letter with further information about their new advisor may be appropriate, you’ll want your first communication to be personal. This provides for an opportunity for your clients to ask questions or to raise concerns.

Give your clients choice: Clients know they have a choice in whom they work with and, if they aren’t completely satisfied with the advisor you have chosen for them, they’ll find a new advisor outside your firm. In a perfect world, you’d have a couple other advisors for them to meet if the chemistry isn’t right on the one you picked for them.

One of the advantages large firms have in this area is that they employ an army of advisors and can make sure each client is matched with an advisor most appropriate for them. As an example, when an Allworth advisor has retired, we’ve had the ability to divvy up that advisor’s client book to a number of other advisors, matching clients with those advisors we believe would be the best match.

Realize some attrition is inevitable: No matter meticulously and methodically you implement your transition plan, there may be a few clients who will leave you anyway. They may have a close friend, neighbor of family member in the business and will chose to go with someone they already know.

Whether you plan on retiring in the next few years or plan to stay working as long as you can, having a well-crafted plan will be beneficial to you and your clients.