Book Brokers prefer to have a holistic approach to most things and so does to succession planning. Their full succession plan proposals are detailed, innovative and well-thought through.
As you very well know running your own practice, financial planning should be, in most cases, comprehensive and all-encompassing. This should also be true to your retirement planning.
Your particular book of business clientele’s average asset size and age and its age, assets, income and geographical distribution and its asset mix and type of assets they have with you are important aspects determening the value of your book of business.
For many financial advisors, I think, the most difficult task is actually to determine at what age they want to reduce their workload and/or to retire fully. To answer these questions, you need to think long and hard with your significant others about the timing of these important. The answers to these questions may be a function of the value of your book of business so you can afford the lifestyle that you are realistically striving for.
If you plan well ahead and are at least 5 years from your desired retirement date after evaluating your business value you could make subtle changes in your make-up of your book to position yourself to benefit the most when it comes to selling your book of business. You might want to refer your 20% to 40% of your clientele who, combined, have less than 15% of the assets you manage so to free up time for you to focus on getting some significant referrals from the wealthiest of your clients.
It is vital to have a plan, even though you might suspect that your plan will likely change a little or even a lot over time.
Book Brokers will gather all relevant information to find out what situation you are in, what priorities and goals you have. Last but not least, it will evaluate the value of your book of business. Based on these, it will draft a detailed analysis on your book of business and of your succession planning.
Book Brokers works with portfolio managers who manage stock, bonds, balanced portfolios, ETFs and mutual fund books, either through a referral arrangement, purchase agreement or a combination of these two, all of which pay the advisor a referral fee, and eventually, a business buyout if so desired. Your referral fees would continue to grow in two ways. The first would be from investment performance of your book; and the second, from any clients, referred to the portfolio manager by clients of your book.
If you are interested in exploring this opportunity further, please contact Book Brokers at info@bookbrokers.ca for a no-obligation, complimentary and confidential referral fee projection or to meet. In most cases, you could expect to make double or more of the net income by transitioning your business to a portfolio manager compared what you would be made without any changes to your business.