When Should a Financial Advisor Start Succession Planning?

Most advisors I talk to about succession say the same thing: "I know I need to figure this out, but it always feels like there's time." And usually there is — until there isn't. A health event, a change in the market, or simply waking up one day ready to slow down can turn a distant question into an urgent one overnight.

The advisors who handle this best tend to start earlier than they think they need to. Not because they're eager to exit, but because good transitions are built, not rushed.

Explore how Lock Wealth approaches advisor succession.

The right starting point is usually three to five years out

If you're thinking about any kind of transition in the next three to five years, now is the time to start. That window gives you enough room to:

• Document your client service model and investment process
• Clean up your CRM and make sure client data is organized
• Understand what your practice is actually worth
• Meet potential successors or partners without pressure
• Decide whether a full sale, partial sale, or gradual transition fits your life

Starting at the last minute limits you to whoever is available and whatever structure they prefer. Starting early lets you choose the structure.

Warning signs that succession should move up your list

You don't have to be ready to retire to start planning. In fact, some of the best planning happens when retirement still feels far away. Here are a few signals that it's time to take this seriously:

• You're over 60 and haven't named or documented a continuity partner
• Your clients only know you — not anyone else at the firm
• You've started turning down new business because you're unsure about long-term capacity
• Your systems live mostly in your head rather than in documented workflows
• You want to slow down but don't have a plan for how that actually works

If any of these feel familiar, you're not behind. You're just at the point where planning becomes more valuable than waiting.

Succession doesn't have to mean selling

One of the biggest misconceptions I hear is that succession planning equals selling your practice. It doesn't. Some of the most successful transitions I've seen are structured differently:

• A gradual transition over two to five years, with the retiring advisor slowly reducing client load
• A partial sale, where the advisor keeps a small group of long-term clients
• Bringing on a successor who takes over client relationships while the original advisor stays involved in strategy
• A consulting arrangement that lets the advisor keep a hand in the practice without day-to-day responsibility

The best structure is the one that fits your clients, your team, and the life you want next.

What to document before any transition

Whether you transition in one year or ten, the buyer or successor will need to understand how the practice runs. The more you can document now, the more valuable and stable your practice becomes. Key areas include:

• Client service workflows — how reviews are scheduled, what reports clients receive, and how questions are handled
• Investment philosophy and portfolio construction process
• Fee schedule and how clients are billed
• Compliance procedures and regulatory history
• Vendor relationships, from custodians to planning software
• Staff roles and responsibilities

This documentation isn't just for a buyer. It's also for your clients, who deserve continuity even if nothing changes for years.

Why I think this matters for the advice industry

A huge portion of the financial advisory industry is approaching retirement age, and many practices are still built around one person. That creates risk for clients and for the advisors themselves. The firms that think about succession early — and communicate it clearly — will be the ones that clients trust and other advisors want to partner with.

At Lock Wealth Management, we believe planning should come first in every transition. That means understanding what the retiring advisor wants, what the clients need, and what a sustainable handoff actually looks like before anyone talks about a purchase price.

Have a confidential conversation about your practice transition.

A few questions worth asking yourself this quarter

• If I couldn't work for six months, what would happen to my clients?
• Do I have a written continuity or succession plan that someone else could follow?
• Have I had a confidential conversation with another advisor about what a transition might look like?
• What would my ideal next chapter look like — full retirement, part-time consulting, or something else?

You don't need all the answers today. But if you're asking the questions, you're already further along than most.

Ben Loughery is a CERTIFIED FINANCIAL PLANNER® and founder of Lock Wealth Management, based in Atlanta, GA. He specializes in retirement income planning, tax optimization, and helping clients — and fellow advisors — build financial confidence at every stage of life.