Disclaimer: The following is my personal commentary on an article originally published by Wealthtender discussing financial advisor succession planning. To read the complete original article, please visit Wealthtender’s website.
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Why I Care About Succession Planning
As Founder and Managing Partner at RGA Investment Advisors, I’ve built my practice on creating lasting client relationships.
That’s why I was pleased to contribute to a recent Wealthtender article addressing a critical question many clients never think to ask:
“What happens if your financial advisor dies?”
While not the most comfortable topic, this question strikes at the heart of long-term financial planning.
After all, the relationship between a client and their financial advisor typically spans decades, making robust contingency plans essential for all firms.
My Contribution to the Discussion
In the article, I emphasized that proper succession planning extends far beyond paperwork:
“A good succession plan goes beyond simply naming a successor—it ensures continuity in the relationship, service quality, and overall approach. Clients should not only know who will take over if something happens to their advisor, but also be familiar with that person long before a transition occurs.”
This directly reflects my philosophy at RGA Investment Advisors.
We intentionally structure our client relationships with continuity in mind.
I believe that “a smooth transition isn’t just about logistics and paperwork—it’s about ensuring the client-advisor relationship remains intact and the new advisor continues to understand and support the client’s goals.”
The Team-Based Approach We Use
At our firm, we implement a team approach specifically designed to address potential transitions.
When onboarding new clients, we introduce them to multiple team members who become familiar with their financial situation.
This approach aligns with observations made by Lawrence D. Sprung from Mitlin Financial in the article, who suggested that “a firm with a solid succession plan should have a team working with the client.”
I’ve witnessed firsthand how this strategy provides genuine peace of mind. Clients rest easier knowing their financial future doesn’t depend on a single advisor’s continued availability.
Questions Every Client Should Ask
The Wealthtender article outlines several critical questions clients should ask their advisors.
From my perspective, the most crucial are:
1. Who Would Take Over?
Clients deserve to know specifically who would manage their portfolio if their primary advisor becomes unavailable.
In my practice, I ensure clients establish meaningful relationships with potential successors well before any transition might occur.
2. How Would the Transition Work?
The mechanics matter.
Clients should understand if their successor would be affiliated with the same firm and broker/dealer, as this significantly impacts the complexity of any transition.
3. When Is Retirement Planned?
As the article points out, if you’re a younger investor with decades ahead, you may not want to hire an advisor nearing retirement.
At RGA Investment Advisors, I’m transparent about my long-term business plans so clients can factor this into their decision-making.
Why Solo Practitioners Present Risk
Clients face the greatest continuity risk when working with solo practitioners.
The article highlights how statistics show many individual advisors lack formal succession plans, potentially leaving clients vulnerable during critical financial moments.
My Advice to Investors
Based on my experience and the insights from the Wealthtender article, I recommend clients:
- Ask direct questions about succession planning during initial interviews.
- Meet the full team that would be involved in your financial planning.
- Request documentation of the succession plan.
- Understand the custodial relationship protecting your assets.
Remember that even if your advisor becomes unavailable, your assets remain safely held by a third-party custodian.
However, the management of those assets—the strategic decisions that help you reach your financial goals—requires thoughtful succession planning.
Building Trust Through Transparency
In my practice, discussing succession planning actually strengthens client relationships rather than creating discomfort.
It demonstrates a commitment to their long-term financial well-being and acknowledges that our responsibility extends beyond our individual careers.
When selecting a financial advisor, their approach to succession planning provides valuable insight into how they view client relationships—as transactions or as lasting partnerships built on trust and continuity.
Disclaimer: This piece reflects my personal thoughts and an excerpt of an article originally written and published by Wealthtender. For the full, original article, please visit the Wealthtender website.