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Wealth Professional | 04 Sep 2013, 12:00 AM Agree 0
The Big Six are aggressively expanding in the wealth segment, and they are likely to push their advantage in scooping up young advisors. That may mean independents and mid-tier firms will have to come up with new ways to recruit.
  • Mike Travers | 09 Sep 2013, 09:11 AM Agree 0
    Being 20 years younger than the average mentioned, I would be considered a younger advisor participating in the independent channel. One massive issue I’ve discussed with my industry contacts is the lack of support dealers provide in helping younger advisors team up with senior advisors, who might be approaching retirement. This is partly the nature of the independent environment, where we tend to work separately from one another and don’t want too much interference from the dealer, but I feel all parties involved would benefit from such collaboration.

    Senior advisors would likely have greater success in transitioning their book by linking with a junior advisor, thus maximizing value. Instead of a quick sale, the two advisors would team up and work together over a 2 to 5yr period. In speaking with some senior advisors that have had the foresight to develop such a relationship, they often mention how their revenues have increased as another hand in the office frees them to work on more profitable opportunities. It’s a great way to inject new blood into the practice.

    Junior advisors in the independent channel also benefit by teaming up with a senior advisor by tapping into a revenue source while they are developing and building their own book. Most advisors that have battled in the trenches know it’s tough in the beginning so having some support ensures survival in a tough industry. Beyond that, junior advisors would also benefit by learning from the senior, in an apprentice sort of manner. Working as an independent requires a well-rounded individual given all the hats one has to wear in order to run a practice, something that can be developed while working with a senior advisor.

    Lastly, dealers would increase the likelihood of retaining books of business by fostering succession planning between their senior and junior advisors. In having a program in place that groups seniors and juniors, they’re also more likely to attract new blood in the industry.

    It’s my opinion that the independent space is the best place to be in the industry but there’s a massive dropout rate that can partially be addressed with the help of dealers. Of course, participation by senior advisors is also crucial. With a large group of advisors retiring in the near future, whether by choice or through forced retirement, buying into their own succession planning will not only help their own success but also help strengthen the channel they’ve enjoyed operating in.
  • Sheryl Harras | 09 Sep 2013, 10:22 AM Agree 0
    I agree completely with Mike. I do want to add that I think the amount of support an advisor receives depends on the MGA each advisor is with, as well as the advisors ability to ask for what they want and need.

    I have biweekly calls with a veteran advisor with my MGA. They also offer training sessions where I can network with other advisors and potentially find that senior advisor looking for someone to mentor and start his or her succession plan.

    I am quite hopeful that I will find a senior advisor who sees my great work ethic and my care for clients and want me to care for their clients when they retire.
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