RIA succession planning is no longer optional. It’s a necessity. Roughly a third of financial advisors are over 60. Many have no clear plan for what happens if they step away, or are forced to. Regardless of whether it’s illness, burnout, or just wanting more time with family, the day always comes. And when it does, the consequences hit fast.
Clients get nervous.
Revenue takes a hit.
Value slips away.
Advisors don’t delay planning because they don’t care. They delay because the process feels overwhelming. Or because they think they have time. Or they assume their clients will be fine no matter what. But a business built on trust can’t survive uncertainty. Not for long.
That’s why the best succession plans aren’t about walking away. They’re about building optionality.
Succession is risk management. It’s a safety net. It protects your income, your staff, and the families who’ve trusted you with theirs. It’s also legacy. The name on the door. The approach you’ve built. The relationships you’ve cultivated.
When you shift from reactive to proactive, the conversation changes. It stops being about an exit. It starts being about choice.
And it gives you the freedom to build on your terms, for as long as you want.
The Emotional and Operational Triggers
Succession planning starts long before retirement. It begins with a feeling.
For some RIA owners, it’s the emotional fatigue that creeps in quietly. Years of client meetings, portfolio reviews, and investment management start to wear them down. They still care deeply. But the energy to keep grinding just isn’t the same.
Others hit a different wall when life outside the business changes. New family priorities, like the birth of a child or the desire to travel, shift what matters. One senior advisor shared how motherhood reframed her goals. Building a $500 million RIA firm used to be the vision. Now, she wants time freedom. A flexible life. That shift doesn’t mean she’s less committed. It means her succession plan needs to reflect a new version of success.
Operationally, the triggers are more obvious. Compliance, client requests, trading, fee collection, it all piles up. What used to feel manageable now consumes the day. There’s little time left for strategic growth or mentoring younger advisors. The admin work drowns the leadership role.
That tension between doing the work and growing the business forces a choice. Am I an adviser, or am I building something bigger than myself?
For many, the answer is both. But without support, it’s hard to play both roles well.
That’s where continuity planning, internal succession, or partnering with consolidators or PE firms becomes relevant. These triggers don’t always lead to immediate retirement. Sometimes they simply push an RIA leader to take the first step in the transition process.
For more insights into balancing these options, this guide to internal vs. external succession planning for financial advisors is a useful starting point. It breaks down the pros and cons of each path depending on firm size, goals, and advisor readiness.
Ownership transition isn’t only about exit. It’s about creating a business continuity plan that protects the firm, the team, and the clients.
Because the moment you start thinking beyond the next quarter is the moment the real succession planning process begins.
Common Succession Planning Roadblocks
Most RIA owners know they need a succession plan. But many don’t act on it until it’s too late.
The biggest obstacle? Mindset. Advisors often delay planning because they feel fine now. They’re healthy. Still growing. Still engaged. “I’m not going anywhere” becomes the reason to push succession off one more year.
But succession isn’t about leaving tomorrow. It’s about preparing for when you do, on your terms.
Another roadblock is the assumption that clients will be fine no matter what. Some advisers believe their clients are self-sufficient, financially savvy, and loyal. And many are. But even the most rational client feels uneasy when their advisor disappears without a clear continuity plan. A smooth transition builds trust. A sudden handoff invites doubt.
Then there’s the challenge of finding the right successor. Many RIA leaders are open to internal succession, especially when a junior advisor or internal successor knows the clients and shares the firm’s philosophy. But trust is fragile. A potential buyer or junior partner who doesn’t align on values, around estate planning, tax planning, or how financial planning is delivered, can derail everything.
It’s not just about RIA valuations or money on the table. It’s about belief systems. Clients stay because they trust you. And your successor needs to earn that trust.
It helps to understand the common succession planning mistakes that financial advisors make so you can avoid them in your own process. Recognizing these missteps, such as unclear timelines or inadequate client communication, can drastically improve the outcomes of your plan.
In the broader RIA space, especially in firms across regions like South Carolina or the West Coast, the demand for seamless transitions is rising. Consolidation is accelerating. FP transitions, M&A activity, and the rise of wealth managers backed by PE capital all create urgency.
Yet despite all this, many independent financial advisors still delay. They avoid conversations. Skip continuing education. Postpone hard decisions.
And in doing so, they risk losing the very thing they’ve spent decades building: control.
Succession Options Advisors Are Exploring
Succession doesn’t have to mean walking away. For many RIA owners, it’s about staying involved, but with more freedom, less stress, and a clear plan.
Internal Transitions
Some advisors look inside their firm first. They search for a “Jim or Janet”, a steady, competent internal successor who can manage operations and eventually take over. This path offers continuity and trust.
Clients already know the team. The culture stays intact.
But it’s not always easy. Many junior advisors aren’t ready or aren’t interested in ownership. And without a clear path to equity or leadership, they may not stay long enough to step up. For an internal succession to work, structure matters. Equity needs to be available. Roles need to evolve. Leadership has to be developed.
Growth Partnerships
For firms that want support but don’t want to disappear, merging with a growth partner can be the right fit. Partners like Apollon Wealth Management or Little House Capital give advisors access to deeper infrastructure, tax planning, estate planning, reporting, and investment support, without taking away autonomy.
These partnerships often take the form of minority investments. The RIA keeps its name and culture but gains scale and resources. And when the time comes to fully transition, the firm is already positioned to do so smoothly. This route is especially attractive for advisors who want to spend more time on strategy or client relationships, and less on admin.
Full Sale or Phased Exit
Some advisers prefer a clean break. Others want to phase out slowly over a few years. Both options are valid. In a full sale, the advisor exits quickly, often after a brief transition period. In a phased exit, the RIA owner might stay involved in client meetings or mentorship, gradually stepping back as the new team takes over.
The best path depends on what the advisor wants for their clients, their staff, and their own lifestyle. Succession planning isn’t one-size-fits-all. It’s personal. And the right option is the one that gives the advisor freedom while preserving what they’ve built.
For a comprehensive overview of these paths and others, this article on succession planning for financial advisors is a must-read. It outlines practical steps and structures for making the right choice based on your vision and firm maturity.
The True Value of Your Practice
Valuation isn’t just about how much AUM you manage. Buyers look beyond the surface.
They evaluate your client concentration or whether too much of your book is tied to a few households. They dig into your fee structure. Are you leaving money on the table by charging below market? They ask if you offer financial planning, tax planning, or estate support, or if those services are off the menu.
This is where many advisors miss out.
Even if your firm is healthy today, buyers are asking a deeper question: How much more could this business earn with a few upgrades? That’s the “meat on the bone” mindset.
For example, if you’ve never charged separately for planning services, adding even a modest fee can immediately raise revenue and valuation. Small tweaks like this don’t just increase income. They tell a story about the future upside.
If you’ve never run the numbers, now’s the time to see what your business is really worth. A quick way to do that? Complete a free TruValue Report. It’s a short, three-minute questionnaire designed for independent financial advisors. You’ll get a snapshot of your valuation and clarity on what levers to pull if you want to grow or get ready for sale.
If you’re looking for a full exit, a minority partner, or simply want to test the waters, understanding your value is the first step. The right number gives you leverage. The right plan gives you options.
How to Start the Conversation
Most advisors wait too long to talk about succession. The truth? The earlier you start, the more control you keep.
Valuations are strong right now. Demand from growth partners and consolidators is high. And interest rates are forcing PE-backed buyers to get more selective, which makes preparation even more important. If you’ve ever thought about selling, partnering, or just lightening your load, now is the moment to benchmark your practice’s value.
But there’s more to it than the numbers. Having a plan in place brings peace of mind. It lifts the quiet pressure that builds with every birthday, every compliance headache, every passing thought of “what happens if…”
Advisors often worry that clients will panic if they hear the word “succession.” The opposite is true, when it’s framed the right way.
Here’s how to position it:
“We’re putting some longer-term planning in place, not because we’re going anywhere, but because we believe in continuity. If anything ever happened, I want to make sure you’re taken care of by someone I trust.”
Or:
“Over the next few years, you may see a few new names or faces. I’ll still be here, but I want to make sure we’re building the right team for your future, not just mine.”
Clients appreciate transparency. They want to know you’ve thought ahead. And they stay loyal when they feel protected.
Starting the conversation doesn’t mean stepping away. It means stepping up. It’s about leadership, not exit. And it shows clients and potential partners that you’re building with intention.
Your Legacy Deserves a Plan
Succession planning isn’t about stepping down.
It’s about stepping ahead on your terms.
If your goal is more time, less stress, or securing what you’ve built, now is the time to act. Internal transitions, growth partners, phased exits, they all start with knowing your value and owning your next move.
Here’s one piece of advice most advisors overlook: the best time to plan is before you need to. That’s when you have leverage. That’s when you have options.
To take the first step, complete your free TruValue Report. In under three minutes, you’ll get a clear picture of your RIA’s value and what it could be with the right strategy.
You’ve worked too hard to leave your future to chance. Let’s make sure your next chapter is built with purpose.
