Everyone needs a break now and again. But, for financial advisors who run their own business, taking a vacation and being unreachable — the very antithesis of a trusted advisor — can feel downright risky.
Here are some tips on how to make sure that the practice doesn’t go up in flames when you’re away from the office on your much-deserved summer break:
> Manage your time
Choose your time wisely. Summer tends to work well for advisor vacations because so many clients are also away, says Betty-Anne Howard, a certified financial planner with Making Dreams a Reality in Kingston, Ont., which is under the Independent Planning Group Inc. umbrella. “This is the slowest time for our business.” That said, she makes sure staff members are ready for any RESP-related questions as clients prepare for the upcoming school year.
> Have a back up
Having another professional available for clients who need immediate attention is critical, says Karin Mizgala, a CFP in Salt Spring Island, B.C. and CEO of Money Coaches Canada. Even when she wasn’t in a formal partnership with her business partner, Mizgala covered her holiday time and vice versa, she says. Just having a professional backup available — even when rarely used — can alleviate both client and staff stress, she adds.
> Keep the ball rolling
Stephen Whipp, a CFP with Stephen Whipp Financial in Victoria, which operates under Manulife Securities Inc., says it is vital staff keep filling an advisor’s calendar while they’re away. Encouraging staff to book client and prospect meetings for immediately after a vacation ends means that an advisor doesn’t run the risk of returning to a business that has virtually shut down. “Don’t come back to an empty calendar or else you’re apt to stay on vacation longer than you had anticipated,” he says.
> Start small
Cynthia Pickering, founder of Time is Money Executive Concierge in Calgary, says that the best way to find out whether you are ready to take time off is to practice with a mini-break before taking the leap to longer vacations. “Take baby steps,” she says. “Go away for one day and see how it goes.” This can be an effective way of discovering any holes in one’s getaway plan, she adds.
> Avoid the scramble
Mizgala has learned over the years that it pays to puff up your vacation by adding an “invisible” day, both at the beginning and at the end of her time away. She’s in the office on these days but pretends she’s not so she has time to address any client communication with a clear head. “Is the client really going to care when you’re away one extra day on either end?” she asks. “Likely not, but it will make your life less stressful.”
> Commit to your plan
If you’re aiming for a totally unplugged vacation, let staff know that they are not to contact you at all, except in dire emergencies. In this case, Mizgala ensures that both she and her staff aren’t tempted to break the no-electronics rule by providing her husband’s contact information to staff, rather than her own.
However, when markets are volatile, being unavailable might be too risky. “My clients pay me to look after their money — not to take holidays,” says Whipp. This is when it’s important to touch base with top clients to discuss what is happening and go over possible scenarios, providing contact information for someone else on his team while he’s away.
Whipp warns advisors against calling into the office each day they’re away as that strategy can quickly backfire. That’s because staff will feel pressured to come up with issues to prove they’re working hard, he says.
IE