Retire or move: What’s an aging advisor to do?

After recent changes to retirement deals, particularly by Wells Fargo and Merrill Lynch, some advisors may find themselves with a dilemma: Do I take the amount offered (up to 275% in some cases) or do I go to a new firm, get a transition package and then retire?

It’s no idle question for scores of advisors. According to a recent Cerulli Associates report, the average age of financial advisors in the U.S. was 52 at the end of 2017. Over the next decade, more than a third of all advisors are expected to retire, Cerulli says.

So, if you stay at your current firm, then you may — depending on your production, length of service and assets — get a lot of money for basically doing nothing. Of course, the backend payments may be contingent upon most of your assets staying with the inheriting FA. You generally will also need to sign a non-compete so you can’t join a competitive firm upon retiring.

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