Does your Adviser have a Plan?


IMG_6537-1106When I was beginning my search for a career in the financial services industry, a wise individual told me “you want to work with a team that operates as a business and not as a lifestyle firm.” This is a statement that was not only applicable to my situation, but also a consideration that should be posed by every consumer to his or her adviser. After all, what does happen to all of the planning you’ve put into your financial future if your adviser simply exits the business tomorrow?

Unfortunately, with the ranks of advisers aging, this is a question that will demand an answer for many consumers over the next decade. Research released by Financial Advisor Magazine1 found that less than 25% of advisers have viable succession plans. Even more daunting, the same research found that 70% of independent advisers are sole practitioners.

This leaves many consumers with an endless amount of outcomes. Among these possibilities is the risk that you are left to face the ups and downs of the economy alone while the fate of the firm is determined or the danger that the intimate relationship with your current adviser is pushed off to a complete stranger.

The next time you go in for a review, make the effort to ensure protection of your financial future. Ask your adviser if a succession plan is in place. Make a personal observation whether, your adviser is building a “lifestyle firm” for his/her immediate prosperity or whether he/she is operating as a “business,” innovating and making reinvestments in the future prosperity of his/her clients?

It should be evident that if your current adviser leaves the business tomorrow, there are other qualified team members in place that can easily step in and help you to make the financial decisions that loom unexpectedly. Ideally, you should want the opportunity to have relationships with multiple advisers, young and old, on the team. This assures that someone will be there to support your decisions throughout your financial life.

To address this subject with integrity we share some of our company’s planning on this subject as follows:

  1. The ownership of Payne Wealth Partners has spread from one shareholder for many years, to now 4 shareholders.
  2. Each owner of Payne Wealth Partners has signed a shareholders agreement addressing the sale of his/her ownership interests back to the company in certain events, including death. Payne Wealth Partners owns life insurance on each shareholder that would fund the purchase from the shareholders estate.
  3. At this writing there are 14 employees of Payne Wealth partners with ages spread over a 40-year range. The average age of these 14 employees is in their early 30s.

One of the most powerful elements of succession planning is ensuring that values and skills are passed down through multiple generations of professionals. The leadership of the Payne Wealth team has not only considered it meaningful to implement adequate succession planning, but they have identified the immeasurable value of investing in younger generations to assure that clients receive purposeful advice throughout their entire financial lives.

Studies show1 that nearly one third of advisers in the United States will exit the business over the next decade. Take the time to be a prudent client and ask the difficult questions. It will certainly be reflected in your future.

If you are interested in better understanding how a multigenerational client focused succession plan can benefit you and your family just click the button to start a conversation.

PWP fall2015 IMG-5188start-the-conversation



Date Published: October 30, 2015

Author: Chad R. McPherson

Phone: (812) 602-5980





The information in this material is only as current as the date indicated, and may be superseded by subsequent market events or for other reasons. While all information prepared in this document is believed to be accurate, any statements of opinion constitute only current opinions of Payne Wealth Partners, Inc., which are subject to change and which Payne Wealth Partners, Inc. does not undertake to update. Accordingly, you should not put undue reliance on these statements. The information does not attempt to examine all the facts and circumstances that may be relevant to an individual’s financial needs. Payne Wealth Partners, Inc. is not soliciting any action based on these statements.

Contact Our Offices

Payne Wealth Partners, Inc.
Keystone Financial Consulting
601 N Cross Pointe Blvd
Evansville, IN 47715
Phone: 812-477-6221
Toll Free: 888-477-6221
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