The One Question Mature RIAs Should Ask Themselves

Originally published on Forbes.com.

What do you want from your work-life? This is, I have come to believe, the most important question mature RIAs should ask themselves. Why do I say this? Over the last decade, I've been privileged to coach numerous mature RIAs in their late 40s through their early 60s. One of the single biggest challenges I've seen people struggle with is the changing role of work in their day-to-day life. Far too often, it feels like air being slowly let out of a balloon.

The closer they get to exiting the industry, usually into retirement, the more acute the challenge becomes. Herein lies the problem. Work has occupied such a huge part of their life that they don't know what to replace it with. If they are not intentional in choosing something else that gives them a real sense of purpose, they end up feeling lost, not very valuable and unimportant. That is not the way you want to go into the next chapter of life.

Time For A New Mission

The RIA industry is challenging but also rewarding. One of the biggest rewards is psychological in nature. We help people make smart decisions with their money so they can live the life of their dreams. Most of us know that if we didn't give our clients good counsel and help them make great decisions, their dreams might not ever come true. This is really important work. It's so important, in fact, that it becomes a mission.

The longer we're in the industry, the more clients we serve, the more we get to see those dreams come true. That sense of accomplishment is something money cannot buy. Anyone involved in a mission that they really believe in doesn't lack for a sense of purpose. They know why they work. They know how important it is for people.

I've come to believe that this is the underlying problem many mature RIAs encounter. As they approach the fourth quarter of their career, they feel that sense of purpose slipping away. Unfortunately, this industry does not do a good job of helping mature people prepare for this part of their career. The overriding logic seems to be—work hard for 30 to 40 years serving clients and then sell your practice to the highest bidder. That might address an RIA's financial needs. But it does nothing to address their psychological needs. It does nothing to help them be ready for the next chapter of their life. It does nothing to give them a new mission.

The Industry Doesn't Seem To Have A Solution

I've actually come to believe that this industry sets up mature RIAs for failure. Let me explain. When we are new to the industry, our mission is to gain clients. After we have clients, our mission is to help them protect and grow their wealth. But once we've accomplished those goals, what's the mission? No one seems to have much of an answer to that question.

Because I've been a branch manager, I know how things tend to go. Leaders at most RIA firms often focus their time and energy on up-and-coming talent. Younger professionals need guidance to attract and serve clients. Mature RIAs usually need little day-to-day support. Their book of business also tends to produce significant revenues for the firm so they don't need help there. The net result is that mature RIAs are often simply ignored.

Mature RIAs typically don't need to be coached in how to gain new clients or how to solve complex problems. The two types of problems that most leaders at RIA firms know how to coach advisors about do not match up to the needs of mature RIAs. At a time in their careers when mature RIAs really need a coach, there is often no coach. So what's the solution?

The Mature RIA Mission

Here is how I've come to see this equation.

• The mission of new RIAs is to get clients.
• The mission of established RIAs is to serve clients well.
• The mission of mature RIAs is to go out on top.

This includes getting the best payout on their book of business and preparing psychologically for what's next. The biggest challenge with the psychological component is helping mature RIAs discover a sense of purpose and/or a set of activities that are just as important and just as invigorating as helping clients achieve their dreams. This is not easy.

It's compounded by another challenge. Most mature people find that their energy levels are not what they were in their youth. So the new mission needs to give them a real sense of purpose, but it also cannot be as demanding as the earlier-stage missions. After having thought about this for many years and after coaching numerous people through this process, I've come to envision a new mission for mature RIAs. I think it has three core parts:

• Define a timeline in which you plan to be fully exited from the industry.
• Develop a strategy for transferring your clients to other advisors.
• Discover a set of activities, purposes, causes or other meaningful ways to spend time and begin to engage in them before exiting the industry.

This last part is really important. RIAs who suddenly jump off the retirement cliff put themselves at risk of being like the dad in that Harry Chapin song. They want to recover lost time with ones they love who no longer have time for them. You really don't want to be the emotionally needy mom or dad who's always asking "when you're coming home."

Here is the thing I've discovered. No two people I've ever worked with had the same tastes, desires or found fulfillment in the same activities. Their plans for fulfilling activities in retirement were as unique as their DNA. So my advice is simple. Start now. Discover activities, communities and causes that give you a real sense of purpose. Connect with them now as you ease your way into the next phase of life.