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David Werdiger's Familosophy

Family Advisor Succession: A Family Perspective

I’ve written several times about the challenges of advisor succession, and now want to look at this from a family risk perspective. If your advisor is suddenly unable to work, is it the advisory firm’s problem, or yours?

While the personal connection between a family of significant wealth and its advisors is important, succession arrangements on the advisor side can have a huge impact on the family. From a risk perspective, it’s important to avoid any “single points of failure”. Each advisor needs a back-up in case of emergency. This applies to wealth managers, lawyers, accountants and other family advisors.

A recent survey in Canada showed that 69% of advisors are nearing retirement or have started creating a succession plan, but only 11% said they have a formal succession plan. Advisors seem to be ageing, and this is also a concern for families who need advisors to be able to connect with rising generation family members.

Consider This: Have you included advisors as part of your family’s risk register? Does each of your advisors have a back up? Do you consider succession as a factor in your choice of advisors?

Original articles: https://www.wealthprofessional.ca/investments/wealth-technology/why-advisor-succession-isnt-just-an-exit-event/363194https://www.investmentexecutive.com/newspaper_/building-your-business-retirement/the-advisors-retirement-making-a-smooth-transition/https://www.wealthprofessional.ca/news/industry-news/nearly-nine-tenths-of-advisors-have-no-formal-succession-plan/356350https://www.theglobeandmail.com/investing/globe-advisor/advisor-news/article-succession-planning-still-a-big-issue-in-financial-advice-industry/

Actionable Generational Wealth Succession 

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