I was feeling nostalgic the other day as I looked in Juliette’s (our youngest) bedroom. 31 years ago, that bedroom was my office. At work later that day in our Calabasas office I began thinking of the journey that brought me here from that bedroom in the upstairs of my house. That process was made possible by the trust several dozen clients had in me when I first left the bank to go independent and work for myself.
My Plans
Lately an increasing number of our clients are asking about my retirement plans. Although I feel like I’m 45 years old, I realize that I celebrated my 60th birthday last year so the question is not without merit. I like to say that I have no plans to retire, but just to retire from the work I don’t like to do. Computer systems, compliance, human resources and lease agreements are the least rewarding and most frustrating parts of running a business for me. I’ve retired from these tasks but see no need to retire from meeting with clients and portfolio managers. That is my passion and my “why” for this business. In short, I have no plans to retire from that.
Succession Plan
Although I have no plans to retire, I don’t have plans to get hit by a bus either. Sometimes bad things happen. What happens to your account if something bad happens to me? I’ve been working on this issue for over the past 10 years or so. The answer is team. As Allen and I have looked for the next generation of financial advisors to manage our clients’ assets, we’ve created an organization that we believe is built to last.
Private Wealth Solutions manages the complete financial lives of more than 270 families. We can only accomplish this task by working as a team. Over the past six years we’ve added Eric and Kumbie to both share the workload and be prepared to run our firm when and if Allen and I cannot. Allen and I both want a firm that will care for our clients, and their beneficiaries, for generations.
Industry Problems
According to Wealth Management Magazine, for every seven financial advisors who are retiring, only three new financial advisors are signing on.1 How does Private Wealth Solutions plan to address this issue considering its succession plan? Unlike most firms, we do not recruit advisors, we train them. Kumbie and Eric were both new to the industry when they joined our team. Adding advisors in this manner allows Allen and I to instill the unique culture of Private Wealth Solutions without having to untrain experienced advisors.
Our Goal
Although our industry is consolidating and private equity firms are enticing many to sell with a hefty check, Allen and I have no intention of selling out. Our team and firm culture are more valuable to us than any buyout offer we attract. Private Wealth Solutions has been, and will remain, committed to helping you achieve your financial goals with the least amount of risk possible. We believe this is the core goal for our clients and our team. Now that’s a legacy I can be proud of!
Doug Lagerstrom