Displaying items by tag: client anxiety

When an advisor leaves and their accounts are reassigned to you, the transition requires sensitivity, strategy, and respect for the client relationship that preceded you. These clients may have had deep trust in their former advisor, and any attempt to immediately assert control or change how things are done can damage the relationship before it begins. 

Instead of declaring, “You’re my client now,” approach them as if they were newly referred—someone you're hoping to earn, not inherit. Start by learning as much as possible about the client’s history, goals, and preferences, using CRM notes and internal records to guide your outreach. 

By demonstrating empathy, professionalism, and a genuine interest in the client’s well-being, you can build trust over time and help ensure they choose to stay with the firm—not because they have to, but because they want to.

Finsum: In your first meeting, listen more than you speak, focus on continuity, and resist any urge to immediately pitch new products.

While it’s often said that changing broker-dealers results in losing 30% of your client book, the actual retention rate depends heavily on where you're leaving from, where you're going, and how the transition is handled. Advisors moving from banks to independence often do face steeper losses, due to legal and structural barriers, while those shifting between independent broker-dealers typically experience much smaller attrition. 

The key to maintaining client loyalty lies in how the move is communicated—clients are more likely to stay if they understand how the switch benefits them, not just the advisor. Advisors should frame the conversation around enhanced service offerings, broader product access, reduced fees, or improved technology and stability. 

A real-world example saw one advisor retain 98% of clients by clearly articulating these benefits during a move from a failing firm to a more robust platform. 

Finsum: Ultimately, when advisors lead with client-first messaging, transitions can not only preserve but even grow their practice.

Custodian transitions can make RIAs anxious about losing clients, but careful planning and strong communication can significantly reduce attrition risk. On average, advisors may lose nearly 20% of client assets during a transition, but that figure often reflects poor preparation rather than an inevitable outcome. 

The key to a successful move lies in two areas: reinforcing client relationships and clearly explaining the reasons and benefits behind the change. Advisors should prioritize transparency without overloading clients with technical details, offering reassurance, a timeline, and emphasizing how the switch enhances service. 

Relationships that feel unstable before a transition may signal deeper issues, making them worth addressing whether or not a move happens. 

Finsum: Ultimately, sticking with a subpar custodian out of fear can hurt more than switching—especially if poor service impacts how clients perceive the advisor’s value.

Switching broker-dealers is a complex process, but with the right approach, it can be a transformative step for an advisor’s business.

• Legal considerations should be the first priority, as non-compete clauses and client ownership agreements can create hurdles if not addressed properly. 
• Developing a detailed transition plan at least 90 days in advance is essential, ensuring advisors understand which accounts can move, which will remain, and how client data can be organized legally. 
• Engaging staff early in the process prevents last-minute chaos and helps distribute responsibilities effectively. 
• Advisors should also consider client communication strategies, ensuring a seamless transition that reassures clients and maintains trust. 

Finsum: Ultimately, a well-executed move can enhance an advisor’s ability to serve clients while positioning their practice for long-term growth.

Many financial advisors struggle with the idea of their own retirement due to a fear of losing identity and purpose, leading to delayed succession planning. Casey Jorgensen, head of the Dynasty Institute for Adaptive Leadership, emphasizes the psychological barriers that keep advisors working past their prime. 

Advisors often fear losing their sense of self and purpose, contributing to delayed transitions and frustrated potential successors. Dynasty Financial Partners focuses on the emotional aspects of retirement in its advisor succession planning efforts, encouraging advisors to plan not just for what they’re leaving behind, but for what lies ahead. 

Failure to prepare adequately for retirement can negatively impact a firm’s growth and valuation as aging clients distribute assets. Jorgensen encourages advisors to develop a post-career plan to maintain a sense of purpose after stepping down from their careers.

Finsum: A successful succession plan is not only fruitful for the company but for advisors as well and can give other clients confidence.