Summer Thinking- Navigating Changes

Last August, I made the decision to forgo taking time off, anticipating that we would be busy—and we certainly were. This year, I expected things might be different, but once again, the market remains active, and there is much to consider. As such, I find myself at my desk, as usual.

Typically, the summer period is known for its slower pace—what we often refer to as ‘thinking time’. No doubt, you’ve heard me use this phrase before. Away from the office and the daily grind, moments of relaxation can lead to introspection, prompting professionals to reassess their goals, ambitions, and chosen paths.

I am aware of several IFAs who have used these holiday periods to step back from daily distractions and take the time to consult with close family members about potential changes they may wish to make in their professional lives. Making such changes is a significant decision and should not be undertaken lightly.

For those contemplating retirement, the emotional considerations can be overwhelming. Over the years, we have served as a sounding board for many IFAs wrestling with the “Shall I stay, or shall I go?” dilemma.

We believe this is a crucial aspect of our service. I learned long ago that it is unwise to make a decision without being fully informed. Our approach is to provide a genuinely independent opinion, presenting all the available options and potentially bringing to your attention options you may not have been aware of.

There is no doubt that my generation of IFAs is approaching retirement if not already retired, but I was surprised to read in IFA Magazine that even younger IFAs are contemplating this step.

Research conducted by Investec Wealth & Management revealed that more than a third (35%) of IFAs and financial planners surveyed intend to retire before they turn 50, with similar number, citing increased job stress as a factor.

Additionally, the survey indicated that half (51%) of IFAs and financial planners estimate their firms will retain only up to 50% of the clients’ assets they currently manage after they retire. Among the reasons for considering retirement, 37% of respondents mentioned that their firm had been acquired or merged with another company, and they were dissatisfied with the new working conditions.

There are some key takeaways from these findings that underscore a point I have emphasised for years: “The Cultural Fit”. Ensuring a good cultural fit when selling or merging your business is crucial.

This is essential for client retention, to maximise the payout for your years of hard work in building your client base, and importantly, to ensure that after years of “doing it your way”, you do not spend the final years of your working life under an intolerable regime.

If you are considering a change in your professional life, please do reach out to us. We would be happy to discuss the full range of options available to you.