When you hire a financial adviser, it’s common to work with someone your own age. So when you’re ready to retire, your adviser might be, too—right when you need the person most.
Kevin Smith, executive vice president of Smith Wealth Advisory Group in York, Penn., a financial planner for more than 30 years, can appreciate why clients might be thinking about his future retirement. “I’m not retiring any time soon, but I can see my clients wondering, ‘What will we do when Kevin is gone?’”
As it happens, the wealth management industry is about to face a wave of retirements. The average age of financial advisers today is about 55, with 20% of industry professionals currently 65 or older, according to a 2019 study from J.D. Power. Whether your adviser is nearing retirement or not, you’ll want a succession plan in place before you need it.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Ideally, your adviser should already have one, and if you’re unsure, ask. At Smith Wealth Advisory Group, where clients get an entire team of advisers consisting of multiple generations, the succession plan is built in. “My clients are already getting to know and working with these other advisers,” Smith says. “That helps prepare us for a seamless transition.”
Succession planning is a concern for all advisers, not just those nearing retirement. Even though Luke Chapman, president of SFS Wealth Management in New Castle, Del., is only in his 30s, he intentionally built a team with other advisers. “I could just as easily be hit by a bus,” he says. “That’s why it’s so important that my clients have relationships with at least one, if not two, other advisers in our practice.”
If your adviser’s succession plan includes other advisers, meet them and learn about their background. “Do they have the same qualifications, the same specialties? Do you trust them as much? Make sure you aren’t just getting passed off to your adviser’s son, the ‘heir apparent,’ who only got his license last week,” warns Chapman.
And if there isn’t a succession plan? “That’s just not acceptable, and they need to develop one for you,” says Smith. “If they cannot do that, you need to accept the risk, or consider moving.”
Not every departure is planned. A sudden illness, an unexpected retirement, family emergencies and even death can leave you in a bind. Smith remembers one such situation: “We had a couple who had been working with their adviser for decades. He handled their taxes as well as their investments. When he passed away, they had no idea where their money was. We spent three hours with them just to figure out what was going on.”
So what should you do if you discover that your adviser has moved on? “Don’t panic but don’t delay finding another relationship,” says Chapman. He suggests asking friends and family for referrals. Organizations like the CFP Board and the Financial Planners Association have search engines for finding advisers locally.
If your adviser worked at a firm with other planners, you could request another adviser there. In fact, you may already be assigned to someone else. This can be convenient because you won’t have to move your accounts, but it’s not a great sign that the firm didn’t have the forethought to build this relationship sooner.
If you don’t feel an immediate connection with that person, request interviews with other advisers at the same firm, and don’t feel obligated to stay. “No one firm or company owns your business,” says Chapman.
Changing firms has its downsides. You’ll need to transfer your portfolio, which could force you to sell some funds and replace them with the options at the new firm. Plus, it may not be feasible to move some assets, like annuities, to another company without incurring surrender charges.
Working on a succession plan now with your current adviser means you won’t need to scramble for a replacement later. The CFP Board’s motto is “Let’s Make a Plan.” That applies just as much to your adviser’s retirement as your own.
-
3 Ways to Stretch the 2026 Social Security COLA For Your BudgetThree steps retirees can take to stretch the Social Security COLA to fit their budgets.
-
How to Keep Your Charitable Giving Momentum Going All YearInstead of treating charity like a year-end rush for tax breaks, consider using smart tools like DAFs and recurring grants for maximum impact all the year.
-
Uber Takes Aim at the Bottom Lines of Billboard LawyersUber has filed lawsuits and proposed a ballot initiative, in California, to curb settlements it claims are falsely inflated by some personal injury lawyers.
-
10 Retirement Tax Plan Moves to Make Before December 31Retirement Taxes Proactively reviewing your health coverage, RMDs and IRAs can lower retirement taxes in 2025 and 2026. Here’s how.
-
The Rubber Duck Rule of Retirement Tax PlanningRetirement Taxes How can you identify gaps and hidden assumptions in your tax plan for retirement? The solution may be stranger than you think.
-
Older Investors: Boost Your Savings and Retire EarlierThis one measure can help older investors retire up to two years earlier and potentially double their retirement savings.
-
What Does Medicare Not Cover? Eight Things You Should KnowMedicare Part A and Part B leave gaps in your healthcare coverage. But Medicare Advantage has problems, too.
-
457 Plan Contribution Limits for 2026Retirement plans There are higher 457 plan contribution limits in 2026. That's good news for state and local government employees.
-
Estate Planning Checklist: 13 Smart Movesretirement Follow this estate planning checklist for you (and your heirs) to hold on to more of your hard-earned money.
-
Medicare Basics: 12 Things You Need to KnowMedicare There's Medicare Part A, Part B, Part D, Medigap plans, Medicare Advantage plans and so on. We sort out the confusion about signing up for Medicare — and much more.
-
The Seven Worst Assets to Leave Your Kids or Grandkidsinheritance Leaving these assets to your loved ones may be more trouble than it’s worth. Here's how to avoid adding to their grief after you're gone.
