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Advisors answer the biggest question: What is your legacy strategy?

The survey revealed an increase in the number of financial advisors with succession planning. Consistent with the findings of the 2018 FPA Survey, it was found that 27% of financial advisors have a succession plan for six years or more.

However, SmartAsset found that 38% of survey advisors had created a succession plan over the past several years. As a result, nearly two-thirds of financial advisors (64.36%) had a succession plan by February 2022.

Most financial advisors who do not yet have a succession plan in place aim to do so in the near future. Among advisors without a succession plan, 56% indicated that they would like to create one at some point in the future. The remaining 44% of consultants (who made up one in five of those surveyed) had no plans to convert or sell their firm and no intention of starting one.

The survey also revealed that most people don’t think about succession planning when it comes to financial advisors. Despite the fact that the lack of succession planning for financial advisors poses a threat to clients, only one-quarter of financial advisors (25.05 percent) claim that clients inquire about their firm’s succession planning.

Another part of the survey sheds light on whether consultants plan on internal succession, where someone currently working at the firm will take over; or an external succession, which will include an outside consultant taking over the reins or any other external event such as a merger or sale of a business.

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