Half of financial advisors do not have a written business plan. Of those that do, large firms are more likely than small practices to have one.
These findings, among others, are unveiled in a new report from the Financial Planning Association, “The Future of Practice Management.” The study polled nearly 2,400 financial service professionals to probe them about current and future trends related to managing and growth of an advisory practice.
The survey found that 46 percent of financial advisors do not have a retirement plan for themselves, yet 40 percent are planning to retire within the next 14 years. Also, only 25 percent of advisors have a succession plan to ensure their business transitions appropriately when they retire. The percentage with a formal plan increases slightly to 31 percent at ages 60 to 64 and to 41 percent at age 65-plus.