Beverly Flaxington is a practice management consultant. She answers questions from advisors facing human resource issues. To submit yours, email us here.
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I’m in a junior, but moving to senior, advisory position in a smallish firm. The advisor I’ve worked for, who is 62-years old, is moving into retirement in the next two years. This has been known and communicated broadly. Clients and the rest of the firm are aware and he and I have discussed how best to transition every relationship so as to keep clients when he leaves.
There is one other partner in the firm. My advisor and he each own 50% and share equally in the profits. There is a buy-in component for me, but there has been nothing said about what portion of the firm I would own. There has been nothing communicated about whether the retiring advisor is taking a portion of the fees when he retires. Nothing about an option for me to take a loan for buy-in.
In short, everything has been communicated about the fact the advisor is retiring, but nothing has been communicated – to me – about what’s going to happen to me. These are large financial considerations as I’m sure you are aware. How do I raise these issues without appearing greedy or ungrateful? I like both of the partners. But they are very wealthy and I’m not sure they understand the view from my seat.