John Gutfranski, CFP, AIF, CRPC • Houston, TX
Cetera Advisor Networks LLC
Debra White Stephens, CFP • Houston, TX
Cetera Advisor Networks LLC
John and I are in the fourth year of our long-term plan for gradually transitioning the practice to John. One of the key things we are doing is allowing for the transition to take place slowly over a long period of time. The goal for our first five years together was to really grow the business with new clients and have John fully introduced to my current clients. As they have become comfortable with John and his contributions, it has been natural for referrals from current clients to flow to him.
For me, a priority outcome of the succession is the assurance that my clients will be well taken care of. I looked for someone who would care for my existing client base with the same diligence that I do. This succession is not about simply selling out to another firm or advisor.
One of the mistakes I have seen other advisors make is selling their business to someone who is perhaps a very competent advisor, but does not make a total commitment to the transition. Your clients are your clients because of the trust you have earned over time.
Your successor needs to pay his dues, so to speak, to build those relationships for himself and the future of the practice. Otherwise, clients see little reason to stick around.
Debra and I have the same investment discipline centered around active management, so that piece has been a seamless transition. It is not only about having the clients getting to know me and vice versa, but them feeling confident that the relationship and their investments will be handled in a similar manner moving forward.
The transition plan has worked especially well with our small business clients. Debra and I have both been able to focus on our particular strengths in those relationships. I can be the 401(k) specialist for the business owner and his employees, while Debra can handle the financial planning, buy-sell agreements if needed, and insurance needs.
Debra and I both are involved, however, with every aspect of the business, especially asset management.
Disclosure: Securities and investment advisory services offered through Cetera Advisor Networks LLC, member FINRA, SIPC. Cetera is under separate ownership from any other named entity.
Following publication of this article, Ms. Stephens and Mr. Gutfranski were registered with Voya Financial Advisors, Inc., effective 2015.
Photography by Scott F. Kohn
