Making Dollars Making $ense: Are you working with a forward-looking firm?



BY MICHAEL MCGILVARY

Financial Advisor

At Marzano Capital Group, we believe that the world of investment management has changed for the better over the past few years. You may have heard me say this before in previous articles, but the role of financial advisors has changed from product-oriented client relationships to advice-based client relationships. The client’s goals and needs should be first and foremost. Forward-looking investment management firms are conducting business in this manner and winning market share.

However, there is another financial industry trend we are noticing where investment firms may not be focusing on the future of their practices regarding the age of their financial professionals on staff. According to a 2019 CNBC article, the average financial advisor is in their mid-50’s.1 While years of industry experience are helping these advisors serve their clients’ goals and needs, we see some possible issues arising in the coming years, such as what will happen to those clients when their advisor retires? Who will make sure they not only get to retirement, but through retirement?

Have you and your family planned all these years with your advisor to make it to retirement and meet your goals, just to be turned over to another advisor you may not have a relationship with when your advisor hangs it up? I think not. We strongly believe the firm you work with should have a plan for their own succession, just as you have planned all these years. At Marzano Capital Group, we have made it a top priority to work as a team to ensure continuity of service for our clients and to focus on the next generation of professionals in our office.

We have members on our team with over 20 years of industry experience; however, we also have advisors in the office that are in their early to mid-30s. In our opinion, having a well-rounded financial team in regards to age also creates a holistic approach to client relationships. When our team at Marzano Capital Group has the opportunity to sit down with a client or prospect, at least 2 of our advisors are involved with the planning process. We feel this is a prudent way to manage relationships so that multiple advisors become resources for our clients.

Investment firms in our community that are placing clients’ goals first should continue to win new relationships, as they ought to. However, we believe firms that are not only putting clients first but planning for continuity of service and care for these clients, will be in the best position for the future.

1Osterland, Andrew. “As Advisors Start to ‘Age out,’ Firms Look to Step up Succession Planning.” CNBC, CNBC, 29 Oct. 2019, cnbc.com/2019/10/29/financial-advisors-need-succession-plan-to-benefit-clients-and-firm.html.

Securities offered through LPL Financial, Member FINRA/SIPC, Investment advice offered through Independent Advisor Alliance, a registered investment advisor, Independent Advisor Alliance and Marzano Capital Group are separate entities from LPL Financial.


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