In last week’s blog post, we discussed the current succession planning crisis in the financial services industry, including why it’s so important for both financial advisors and families such as yours to have an actionable succession plan in place. Today, it’s time to look at how your advisor’s lack of a succession plan could affect you or someone you care about.
Have you ever wondered what would happen to your financial plan and portfolio if your advisor suddenly retired, fell ill, or died? It’s not the happiest scenario to consider, but it’s an important question to answer. And it’s likely a question you haven’t discussed with your advisor. Would you take over the management of your accounts, or would you transition them to another financial advisor or firm?
If you were a client of a large brokerage firm, such as Merrill Lynch, you would be reassigned to another advisor as a “transient client.” This advisor would be assigned to you at random and he or she may not necessarily be qualified to meet any specific or complex needs you have. You would have to meet with this new advisor and essentially start over explaining your goals, fears, concerns, and needs. If the relationship ultimately didn’t work out, you would not only waste time and money but you would also have to start again with another advisor. As you had previously been working with an advisor, you likely don’t have the time to take over the management of your investments.
A similar situation could happen to your family if you didn’t have a succession plan in place. Your family may not be aware of the risk of your investment portfolio, the goals you had identified with your advisor, and how you intended you wealth to be transferred. Without a succession plan, it could potentially be difficult for your family to continue working with an advisor without having to restart the planning process.
Just as you wouldn’t want to leave your family without a succession plan in place, we don’t want to leave you in such a position, either. This is why we have dedicated the time to create a comprehensive succession plan. Should something happen to any member of our team, there are other members of our office who would take over their role and provide you the attention you deserve. Our team would have your financial data and understand your current financial situation, risk tolerance, current accounts, and future goals.
As an independent firm and close-knit team, we want you to feel comfortable coming into our office, asking questions, and feeling like a part of the Nobile Hinchey Private Wealth Management family no matter which team member you’re working with. Beyond working closely with you, we work with your family. It’s important to keep everyone on the same page in terms of your financial strategies. Should the unexpected happen to you, we can continue working with your family and assist with the transfer of your wealth.
If you are currently a client of our firm but have a friend or family member who is looking for an advisor, we would be happy to discuss how we may be able to help, the services we offer, and give a second opinion on their financial plan at no cost. We invite you to share this article with your friends and family. To set up a complimentary consultation or ask a question, you can reach out to us by email at email@example.com, or call our office at (860) 659-5977.