Even the best-laid plans can go awry, and for advisors transitioning to a new firm, the risks increase when due diligence is rushed. A well-thought-out strategy can help avoid common pitfalls, especially when considering client loyalty and portability. 

Clients generally follow advisors, not firms, but those who have moved before must present a compelling, client-centered rationale for another transition. The ability to replicate services, including alternative investments and loan terms, is also crucial, as logistical hurdles could deter clients from making the switch. 

Legal risks, such as violating non-solicitation clauses or mishandling proprietary information, can lead to costly consequences, making legal counsel essential.

Finsum: While unexpected challenges may arise, advisors can minimize disruptions by learning from past transitions and following best practices.

Advisors evaluating a new firm should ask key questions to determine if it aligns with their long-term goals and client needs. 

1. First, understanding who owns the firm reveals its revenue structure, potential proprietary product requirements, and overall objectivity. 
2. Second, clarifying who owns the book of business is crucial, as it impacts client retention and succession planning in the event of a departure. 
3. Third, identifying the firm’s clearing firm or custodian helps advisors assess whether transitioning will be smooth or require significant operational changes. 

Staying with a familiar platform can simplify the move, while switching may present challenges.

Finsum: By addressing these questions upfront, advisors can make informed decisions about their professional future.

DC plan sponsors must balance the need for steady lifetime income with participants’ desire to retain asset control. According to recent survey data, many individuals want guaranteed income but are reluctant to lock away their savings, making flexible solutions essential. 

A guaranteed lifetime withdrawal benefit (GLWB) offers income security while allowing participants to maintain access to their funds, unlike traditional annuities that require upfront asset surrender. 

While single premium immediate annuities (SPIAs) and qualified longevity annuity contracts (QLACs) provide reliable payouts, they often limit liquidity and growth potential. Self-insuring through investment withdrawals may work for those with substantial outside income but poses risks for the average retiree. 

Finsum: Offering adaptable income solutions like the GLWB allows plan sponsors to support a wider range of participants without sacrificing financial stability.