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April 21, 2020 at 11:15 AM
(Image: Shutterstock)
As clients and advisors navigate today’s quickly evolving and uncertain landscape, many have had to change previously well-laid-out plans. Vacations, work travel and even some life events, such as weddings, have been rescheduled or postponed due to the novel coronavirus.
Amid all of this, a number of advisors who were planning to retire this spring or even this year may be wondering if they should alter their plans and delay entering their next chapter.
If you fall into this category, it is important to understand the decision to retire remains a personal choice, but consideration should be given to the readiness of key stakeholders in your practice.
Despite the current market environment, much of this decision should still ultimately depend on how well you have planned for the next step, and if your clients, your successor as well as yourself are still ready for this change.
Client Readiness
How well you have prepared your clients should play a paramount role in whether a retirement delay is warranted. Clients, who generally require six months to a year to get used to a new advisor leading them through their financial goals, can and will be OK if their retiring advisor has painted a picture of what life without them will look like.
If you have not begun this process and you are planning to retire this year, time is of the essence. A call to clients to discuss their investment and life goals given the current market environment is a good way to segue into discussing your life goals and your exit strategy.
Successor Readiness
If you have not yet chosen a successor, you may want to consider delaying your plan, given the importance that finding a trustworthy successor plays on the future of your practice and your clients’ continuity of service.
