Retire on your terms: take control with a continuity plan
By Delaney Metcalf, SVP, Capital Solutions, Osaic
The US population is aging rapidly; by 2030, nearly one in five Americans will be of retirement age. With the demand for personalized wealth management continuing to grow, it is the perfect time to consider not just retirement, but business continuity. For business owners, this means not only preparing their financial futures, but also ensuring their practices remain stable and their clients well cared for, even in unexpected situations.
Succession planning is critical for business owners and a key factor for clients when choosing an advisor. Business owners spend years building successful practices, so it is essential they also build them to last. A succession plan focuses on the “after” by supporting a business’s longevity through the development and training of future leadership. This is particularly pressing as recent studies show that 42 percent of advisors, representing 57 percent of industry assets, plan to retire within the next decade.
However, continuity is not succession, even though the terms are often used interchangeably. It’s critical to have both a succession plan and a continuity plan in place.
A continuity plan goes beyond succession; it protects the business, staff, and clients in the event of unforeseen circumstances. It serves as a safety net meant to keep a business running smoothly in the most unexpected of events. By having a plan in place, advisors ensure that clients are serviced, staff are supported, and the business’s value remains intact.