How One Advisor Is Ahead of the Game After Retiring with TAG 2.0

We invite you to watch a video interview featuring Larry Faretta and Eric Majka, the latest successful TAG TEAM at TAG 2.0, moderated by TAG 2.0 National Sales Manager John Cadigan. Here are the highlights:

Successful longtime financial advisor Larry Faretta recently began thinking about transitioning his practice into retirement. As he said, “Age was probably the most dominant factor and motivator — the inescapable movement of the clock. It was time to start looking out for my clients and developing a succession plan that made sense.” When clients began asking “What happens to me if something happens to you,” Larry knew he had to have a good answer.

One of Larry’s most important priorities when thinking about transitioning his practice was finding someone to take over who would really take the time to get to know his clients and their dreams, goals and preferences, before he might have to leave his practice, either by choice or emergency. Fortunately, he found that person in Eric Majka, a Wealth Associate with TAG 2.0, through a mutual acquaintance. A younger advisor poised to step in as the huge cohort of older advisors prepares to retire, Eric had the skills and experience Larry was looking for in a potential successor.

TAG 2.0 was designed explicitly with transitioning advisors in mind. Of the three available models, Larry chose to embark on the Full-Retirement Program, which allows him to transition his practice over a multi-year time frame while mentoring Eric and getting him up to speed on his clients.

Growing the Practice and Reaping the Rewards

As Eric got to know each of Larry’s clients better, he was also better able to understand how each could benefit from additional services. By introducing Eric as a trusted colleague who would one day take over the practice, Larry opened the door to a complete review of client portfolios. “I asked each if they were interested in coming in for a portfolio review,” said Eric. “Especially with the pandemic, it was a good way to reintroduce ourselves to our clients.”

TAG 2.0’s emphasis on holistic planning led Eric to ask a lot of questions which, more often than not, unearthed assets clients hadn’t thought about or introduced strategies they may not have considered in the past. “Clients often ask what they should be doing,” he continued. “Especially since some are close to retirement and curious about what steps to take to retire or they’re retired and want to know what they should do now.”

A cornerstone of these meetings was educating clients about the industry trend of moving toward fiduciary accounts. While much of the old practice had been transactional and confined to a single mutual fund family, Eric and Larry took this opportunity to transition clients to fiduciary accounts and broaden the scope of their holdings.

As a result of their hard work, they both increased the value of the existing book of business and they gained new clients as a result of the number of referrals they generated in the process.

Show Me The Money: The Benefits of Partnering with TAG

Revenue Sharing:
One of the most unique aspects of a TAG Program is that the advisor shares in any incremental revenue generated by a TAG TEAM. “While I can’t share specific dollar amounts,” said Larry, “I can tell you revenue has begun increasing dramatically. Generally, my business was transactional in nature that matches, by and large, upfront commissions at point of sale. After that, I typically received a 25 basis point trail.

“Now we’re moving into an environment where it’s a 1% fee, and even though I’m sharing and splitting the flow of cash into the business and revenue, I’m still ahead of where I’d be under the old model,” he said.

Growing the Practice:
Larry is pleased with how Eric is helping him move the practice forward to further increase revenue. “It’s a symbiotic relationship and I think it’s going well,” he said. “Eric has been a real motivator for me. He’s somebody that has made me work maybe a little harder than I was sometimes doing at this point in my senior years. He’s more inclined to reach out and make those calls and encourage people to come in for appointments on a regular basis.”

Another benefit of working on a TAG team? The freedom and flexibility to spend time away from the office. Larry is looking forward to traveling more with his wife. “Having Eric gives me a lot of latitude,” he said. “I was away in the spring for two weeks, and Eric absolutely carried the ball effectively and efficiently.”

Mentoring the Younger Generation:
Both men have also benefited from what they can learn from each other. “Eric is very amenable to my mentoring. I’ve learned a lot from him, too, but I think he’s learned a lot from me on some of the nuts and bolts of conducting a general practice such as this one. It’s great,” Larry said.

TAG 2.0

Trust Advisory Group’s TAG 2.0 division has built-in business continuity and succession planning designed to meet advisors where they are today. Whether it’s simply staying compliant in the face of increased regulatory scrutiny, creating a better work/life balance, or planning for full retirement, TAG 2.0 has a program for you.

TAG 2.0 offers advisors 3 levels of engagement:

  1. The TAG Practice Protection Program™ is a no-obligation Business Continuity Plan that protects your practice at any stage of your career.
  2. The TAG Semi-Retirement Program™ allows advisors to streamline their practice, continue working with their favorite clients, and participate in any incremental revenue generated.
  3. The TAG Full Retirement Program™ gives advisors control over their own retirement journey and seamlessly transitions the practice. This option also allows advisors to participate in any incremental revenue generated.

“I’ve been very pleased,” said Larry, “And I look forward to continuing to work with Eric and TAG 2.0.” Watch the video here and contact us today to learn more about TAG 2.0 and how you can benefit with your own TAG TEAM.

Similar Posts
The comments are closed