Beware: Sunset Agreements Can Have Hidden Pitfalls For Next Gen Advisors
Mindy Diamond Quoted
By Mrinalini Krishna
Sunset agreements are a fast-growing technique the industry is using to help solve its looming advisor retirement problem. But are these contracts setting up the next generation of advisors for failure?
“Those sunset programs — or monetize-in-place, or retire-in-place programs — can be a win-win for a senior advisor close to retirement,” says Mindy Diamond, longtime industry recruiter and president and CEO of Diamond Consultants. “But the burden is absolutely placed on the next generation [advisor], because ultimately it’s that successor that’s going to pay for the lion’s share of [the senior advisor’s] retirement program.”