James Zimbardi at Allgen Financial Services in Florida is part of a team that is recruiting established advisors from standalone shops as well as from large institutions to act as relationship managers with clients, anchored by an asset-growing strategist who invests for all clients.
With such a plan, Allgen hopes to attract not just the $1 million that a single client might bring in, but the $10 million one advisor might bring in. Since the plan anticipates exponential growth, part of Allgen’s recruiting plan is to bring rainmakers aboard.
The strategy involves a retirement transition plan for established advisors who may be nearing traditional retirement age and wish to scale down their day-to day activities or eventually leave the business they built and retire. They can get a monetary benefit as a stream of income or a structured payout where they still have contact with their old clients if they so choose, Zimbardi says.
Allgen, established in 2003 and rebranded in 2006, offers a succession plan for these advisors, as they are taken under the wings of the Orlando-based company while they keep their relationships with clients for as long as they would like.
The scenario with the older advisors–not those falling out from Wall Street firms–is that they don’t have the operational structure or an equal partner to whom they can transition the business. These advisors may feel they have to sell their book of business, says Zimbardi, but “emotionally it is very hard. We can make it much easier by telling them they can stay in the game at some level but get more free time they are looking for.”
Zimbardi came into the business as a management consultant from MIT, who joined an advisor for larger institutions formerly with the Federal Reserve in New York, along with a CPA, a recruiter, and a portfolio manager. Thus, the team-based approach Allgen uses, with each partner using his professional expertise in the aid of the client as well as the growth of the firm.
Clients are diverse socioeconomically and can be high-net-worth individuals or young families just starting out.