The Best Time to Discuss Your Retirement with Your Clients

One of the things that financial advisors will need to face when it comes to planning their retirement is when to talk to their clients. It’s a topic that acts like the elephant in the room; everyone knows it’s there, but no one wants to talk about it. However, ignoring that elephant could end up costing you clients. Let’s look at the best time to talk to your clients about your retirement and some of the steps you can take to make it an easier conversation.

The Right Time to Talk to Clients About Your Retirement

Most financial advisor retirement consultants agree that the right time to bring up your retirement with a client is:

• After you’ve developed a working relationship with the client.
• After you have a solid succession plan in place for your business.

Talking to a client too early about your retirement could make them second guess putting their portfolio in your hands. They might feel that you won’t give their account the time and effort that they want from you. Waiting too late to talk to your clients, though, could make them feel like you aren’t making plans for your future and could end up leaving them high and dry when it comes to their portfolio. They may end up taking their account to another financial advisor simply because they are worried there isn’t a plan in place.

You don’t want to bring up the topic until you have a plan to share with them, though. Telling them you are figuring things out still could cause them to feel insecure and take their business elsewhere. Wait until you have a clear and carefully laid out plan that you can share with them. This shows them that you care about their business and this is about more than just how you earn your money. They can feel good about leaving their business with you even through your retirement and transition to a new financial advisor.

If a client asks about your retirement plans before you’ve established a working relationship with them, don’t be afraid to talk to them about your plans. It’s a good way to show them you are proactive and recognize that their financial portfolio will likely need to work longer than you will.

How to Make the Retirement Talk Easier

The easiest to talk to a client about your retirement plans is sharing those plans directly with them. This doesn’t mean opening up your financial or business records to them but giving them all the information that’s going to impact them. If you have a successor in place, bring them in to meet your clients. If you will be transitioning your book to a different financial advisement business, ask the business if they would join you in a presentation about the transition. It’s a great way for your clients to get to know the people and the business that will be handling their account in the future and see that you have a plan that puts them first.

Need help making a transition plan that you can share with your clients? Talk to the advisorRETIRE™ team today. We’re helping financial advisors plan their retirement and make their clients’ transitions as easy as possible. Find out more from our team today.