With a looming 100,000-advisor shortage, senior principals are failing to plan their own exit while misunderstanding what truly motivates the next generation of wealth managers.

Nate Lenz, CEO of Concurrent, joins us to break down the entitlement mindset, the flaw of chasing rainmakers, and to share the key drivers of valuation that will help you with succession planning.

• Nate shares his succession background and a couple of industry developments he has witnessed up close and personal.
• According to a McKinsey study, there will be a shortage of about 100,000 advisors by 2034.
• Nate lists a couple of downsides that can put G2 advisors in a negative situation.
• Kim points out a big flaw many advisors face: Not having planned their own exit nor planning for their own retirement…
• Tyson touches upon a recent encounter with an advisor who saw everything change once the practice was solved – he didn't realize the stress that you need to deal with to hit growth targets.
• Succession readiness is something that Nate and his team often talk about internally at Concurrent.
• Making sure that clients are well taken care of is an important aspect Concurrent focuses on.
• "The path that got a 50, 60, 70-year-old advisor where they are is not going to be the path that takes G2 advisors into the next space," says Kim.
• Nate sees the entitlement mindset as one of the things the next generation of advisors is continuously going to battle.
• Tyson believes that too many advisors are still thinking that they need to hire the rainmaker…
• Opportunities for advancement or mentorship and development – and not work-life balance, remote work, and compensation – are the motivations FinServe has observed among a pool of recent graduates that had entered wealth.
• "Owning my own firm or being a partner in a firm" are the two most popular answers to the "Where do you see yourself in 10 years?" question asked by the Concurrent team.
• Scale, diversity of revenue, alignment, and growth are the four key drivers of valuation at Concurrent.
• Kim and Tyson go through the S.P.A.C.E. acronym: See, Prepare, Act, Commit, and Exit.
• Remember: Succession is a process, not an event.
• Nate talks about how he sees Concurrent help advisors through the S.P.A.C.E. framework.

Mentioned in This Episode:

TotalSuccession.com

TotalSuccession.com/podcast

FORM Wealth Advisors

Tyson Ray

Kim Cochenour

Tyson's book - Total Succession: 5 Steps for Financial Advisors to Exit Confidently, Be Fully Compensated, and Keep Clients' Interests First (available for pre-order)

Nate Lenz on LinkedIn

Concurrent

Raymond James

McKinsey

FinServe