Chris Stuchberry explains how he earned credibility and equity in his father’s practice over several years
Advisors don’t get to retire like the old ‘company man’ might. There’s no gold watch, there’s no planned ‘last day,’ and there’s very rarely a walk off into the sunset. Most advisors, according to the recent IG Advisor Perception survey, don’t want to walk away in a single moment. Almost three quarters of retiring advisors surveyed said they prioritize client wellbeing over any other factor, and ensuring clients are well cared for may mean a succession process that takes years as the retiring advisor gradually transitions business responsibilities and client relationships to their designated successor.
Chris Stuchberry, Senior Portfolio Manager at The Stuchberry Group of Wellington-Altus Private Wealth in Toronto, spent years in a succession plan. Over the better part of a decade he earned more and more client trust and a greater share of equity in his practice. In 2017, he took over leadership of the practice from its founding advisor: his father.
“Since I’ve had the complete ownership, we just hum along having fun,” Stuchberry says. “So it’s been moderately easy from that perspective. [My father] can walk anytime he wants. But it’s a funny one in that we’ve gotten to the point where everybody’s kind of enjoying themselves. He might say, ‘I could be out tomorrow.’ And I’ll say, ‘yeah, you can, but you’ll probably be here.’”
Earning credibility as a successor
Getting to that comfortable point of a complete succession and a semi-retired founding advisor wasn’t easy or quick. Stuchberry explained that when he joined his father’s practice in 2009, he was 25 years old. Despite three years’ experience on an institutional trading desk, he found that his clients still expressed some doubts. “There was always a credibility issue,” he says. “if you say something as a 25-year old, it doesn’t mean anything.”
Rather than letting those initial doubts discourage him, Stuchberry worked to earn client trust. Where they may have initially doubted some of his stock picks, such as investments in what was then Facebook, the returns spoke to Stuchberry’s credibility and helped him earn client trust. Whether in asset allocation, financial planning, or helping with sensitive moments like a transition into retirement, Stuchberry took the opportunity to deliver a high level of service and ensure that each client trusted him to deliver on what they expected.
Stuchberry’s takeaway for young advisors looking to take over existing practices now is that they will face a similar uphill climb. Even if they’re talented and the retiring advisor has full confidence in them, he says that earning full credibility with clients can take years.
Succession as a gradual change
Stuchberry is the first to point out that his situation has some advantages and unique features. Taking over a family practice, he says, isn’t necessarily the same kind of financial transaction that many succession plans end up being. His equity in the business was earned as he grew and took responsibility for more clients. While he now has leadership of the business, his father still works in the office and continues to serve clients in a state akin to ‘semi-retirement.’ The familial relationship certainly helps with that dynamic, but Stuchberry believes that other advisors can learn from that experience.
Speaking to succeeding advisors, Stuchberry says that the slow and steady approach is likely going to be the most successful. Gradually earning credibility under the auspices of the retiring advisor can help ensure client care is prioritized. At the same time, he believes that this gradual transition can suit the work and lifestyles of many retiring advisors. In an industry driven by passionate people and client care, he thinks that allowing for the retiring advisor’s continued participation can help keep that passion in the industry while ensuring client retention.
“A lot of this business is passion driven. And I think that firm retirement for a lot of folks might be pretty tough because it does keep you sharp,” Stuchberry says. “I think that the semi-retirement fits this industry quite a bit more because it’s a hard business to do if you don’t love it. And so, you know, if you really do enjoy it and you wake up and you want to look at this stuff anyway, and you wake up and you’re watching TV, you’re reading. That’s a pretty tough thing to just hang up one day.”
