Knowing when to quit

A life office I was working with recently were encouraged to think the number would be at the very low end based on the results of a certain recent survey. What they did was telephone a lot of advisers and asked them if they would be leaving the industry soon as a result of regulation. The problem with this is in the question - almost no-matter how you ask it, it kind of implies that if you are going to leave the industry there must be something wrong. It's almost like asking ‘are you a crook, a loser, or can you just not pass exams'. So nearly everyone said they were soldiering on.

But I am pretty certain that plenty more people will quit than said so. But not when regulation arrives - it will take a little while.

First of all, quitting is good. If you've worked 40 years in the industry, earned a good income, and done well for all your clients then that's a great achievement. But if you look around you that's not what happens - because the fixed costs in our business can be very low, and renewal commissions are pretty good, then many advisers are tempted to hang on to that income stream and keep going - often well into their 70s. What usually forces the exit is a health event. I think that's unfortunate. Also, it probably means that when the time came they don't get anything like as good a price for their books of business.

There are quite a few of these advisers out there - perhaps you are one - and we should consider seriously the question of when to quit, and most importantly, how you make the best financial choice possible.