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Do you have a solid answer when clients ask about your succession plans? Practice continuity and growing your practice can be easier by starting the succession conversation. Some advisors have built a relationship with their successors, and many haven’t. Whichever option you choose, collaborating or teaming with another advisor drives peace of mind and practice growth without having to do it alone. Let us guide you.
Why it matters
A recent WealthManagementIQ study showed that 21% of advisors have a succession plan. That statistic tracks with our advisor population. Are you in the 43% of advisors who are thinking about it? It’s time, and it’s easier than you think!
If you feel like it’s hard to start, aren’t sure who to work with, or don’t know how you would structure your succession, just take the first step. Hear from your peers in this three-minute video, and practice what you preach.
Getting started
There are three parts to succession planning.
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Vested Commissions: Log into Workday and elect your vested renewal beneficiaries. The beneficiary can be an unlicensed person. Agents Emeritus need to use this form.
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For your non-vested renewals and your MMLIS business, use this agreement. Once you’ve completed the form, please email it to Deb. We’ll review it, get the GA’s signature, and submit it to the home office. Once the home office countersigns, we’ll confirm the effective parts of the agreement. We can also create a DocuSign version if that’s easier—just email the details.
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The third aspect is a buy-sell agreement. If you don’t already have one, here’s a template that may be helpful for your future discussions.
Please see the FieldNet page on Business Succession and Continuity for more information, including eligibility
Advisor teaming
Teaming is a great way to transition your practice and make confident introductions to your successors. Advisors who form teams are more productive than solo practitioners and traditional joint work relationships. We have resources to help you decide if teaming is right for you.
Advisors on Teams at MassMutual Generate More Production
- 24% of MassMutual's net field force are on teams; these advisors:
- Produce 29% of MassMutual’s total life insurance, annuities, disability income insurance, and long-term care insurance (LADL) first-year commission (FYC).
- Produce 55% of MMLIS gross dealer concession (GDC).
- Advisors on teams:
- Earn 34% more Tier 1 LADL FYC than non-team advisors.
- Earn 160% more MMLIS GDC than non-team advisors.
Advisors on Teams at MassMutual Grow Faster
- As of December 2022, advisors on teams grew their average Tier 1 LADL FYC by 33%, while non-team advisors grew by 28%.
- As of December 2022, advisors on teams grew their average MMLIS GDC by 138%, while non-team advisors grew by 122%.
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