Finding out that your financial advisor is retiring can feel unsettling, especially if you are a high net worth family or you have worked together for many years and trust them with your financial plans. The retirement of a trusted advisor is a natural time to evaluate your long-term financial strategy and find a financial advisor who understands your current and future goals. When you find yourself in this situation, it’s important to take the time to make a thoughtful transition rather than simply accepting any replacement. Let’s take a look at the key steps you should take when you learn your financial advisor is retiring so you can find a good match for your next advisor.
Why Financial Advisors Retire
Retirement is common across industries, and as many experienced financial advisors reach retirement age, we are seeing more retire. In addition to reaching retirement age, some advisors opt to sell their practice or merge with another firm. While some advisors might retire by a set retirement deadline, others gradually reduce their workload or transition clients to other advisors over several years. By understanding why your financial advisor is retiring, you can work to set yourself up with the right successor for your financial portfolio and goals.
What Happens to Your Investment Accounts?
Your investments typically remain in place when your financial advisor retires and do not disappear. The accounts are generally transferred to another advisor or remain with the same custodian, allowing your portfolio to remain invested according to your current strategy. As a client, you will have the freedom to decide whether to stay or move to another advisor. This freedom is why we recommend that you take the time to compare your options of staying with the successor advisor or choosing a different advisor to determine which one fits your current and future financial goals.
Questions to Ask Before Staying with the Successor Advisor
If you are considering staying with the assigned successor advisor, start by asking how much experience the new advisor has. You should never be afraid to ask this question, and any advisor who wants you as a client will be more than happy to discuss their experience and how they can support you. Also, make sure you ask whether the firm is still acting as a fiduciary during this discussion, so you have a clear idea of how things will work with the successor advisor.
Signs It May Be Time to Consider a Different Advisor
While some clients find success with the successor advisor, if you notice that communication has become less personal and you no longer have the same rapport as with your previous advisor, it may be time to look elsewhere. Other reasons to consider a different advisor include seeking more proactive investment management and a desire to build a stronger long-term relationship for the next stage of your retirement planning. Your age and how much time you have until retirement may also affect whether you want to make this switch, as we understand that some people don’t want to make major changes to their financial management later in life.
How to Transition to a New Financial Advisor
If you are thinking about transitioning to a new financial advisor, start by scheduling introductory meetings with potential advisors that you think could be a good fit for you. During these meetings, ask about investment philosophy, experience, and client communication. At this stage, you’ll also want to review their fees, services, and planning capabilities to determine whether they align with your goals and needs. If you have any doubts or questions at this initial stage, make sure you voice them so you don’t leave these meetings with unanswered questions that could help you select your next financial advisor.
What to Look for in Your Next Financial Advisor
There are some key things to look for when selecting a financial advisor. No matter your goals, they should be able to demonstrate extensive experience in investment management, explain their investment philosophy where appropriate, and clearly describe their process. The best financial advisors always offer personalized wealth management and understand that no two clients have the same personal situation or financial goals. Try to find a stable team with a long-term succession plan so you don’t keep getting passed from one advisor to another regularly. When selecting a financial advisor, strive to find someone who can build a thriving professional partnership with you that will last for years or decades.
How Howland and Associates Helps Clients During Advisor Transitions
Here at Howland and Associates, we make the transition to a new advisor as smooth and straightforward as possible for everyone involved. Many new client relationships begin when an advisor retires, and we will work with you to help you feel confident with your portfolio moving forward. Our firm offers a personalized onboarding process for each client, which involves a careful review of the existing portfolios you hold. Our goal is to provide clients with continuity, transparent communication, and customized investment strategies designed around your personal goals, and we’ll be available to support you throughout the transition. No question is too big or small for our team, and we encourage open communication at every stage to help build trusting relationships.
Your advisor’s retirement is an opportunity to evaluate whether your current advisory relationship is still the best fit for your investment goals and long-term financial objectives. By taking the time to evaluate your options, you can begin building a new relationship with an advisor who will serve your family for many years to come. Are you looking for more information about our financial services? Schedule a confidential consultation with Howland and Associates today or contact us to request more information about the services our financial advisors offer.