fall | winter 2014 independence, simplified · business owner’s book of business, and we...

Independence, Simplified®

Fall | Winter 2014

2Move your clients FiNet helps every practice transition to independence by letting advisors focus on what’s most important — their clients

4Serve your clients FiNet’s products and services allow business owners to serve their clients efficiently and effectively — according to their unique needs

6Grow your practice Every FiNet practice has a team dedicated to its long-term growth and success, in the beginning and over time

Lindsey Donovan, Associate Financial Advisor and Steve Veesart, Senior Financial Advisor – Veesart Financial, page 5

For Financial Professional Use Only


If your desire is to be the best, then your goal should be to improve with each passing year. At Wells Fargo Advisors Financial Network (FiNet), we make a conscious effort to never settle for the status quo. This is the reason FiNet is the choice for top financial advisors seeking independence.

As the independent brokerage channel of Wells Fargo & Company, FiNet provides access to the scope and stability of a major financial institution coupled with the freedom and flexibility of business ownership. In essence, you get “the best of both worlds” – access to best-in-class products and services, a comprehensive plat-form, the freedom to build your own client-service model, control of day-to-day operations, and the ability to design a legacy for your business, your family, and yourself.

But the move to independence is not for everyone. It requires thoughtful planning, a desire to run and grow your business, and unwavering dedication to do what is right for your clients. With those principles in place, you can begin the transition to independence. Here at FiNet, you will partner with a transition consultant who will guide you in establishing your business, moving your client accounts, and retaining your clients via a tried-and-true process. Thereafter, you can opt to leverage the products and resources of Wells Fargo to strengthen client service and loyalty. And for the long haul, you can benefit from FiNet’s commitment to help you grow and build equity in your practice.

Don’t believe me? Then read on and see what current business owners have to say about their affiliation with FiNet. If their stories resonate with where you are and where you want to be, I invite you to further explore Wells Fargo Advisors Financial Network.

C. Kent Christian President, Wells Fargo Advisors Financial Network


1For Financial Professional Use Only

The Wells Fargo Advisors Financial Network StoryWells Fargo Advisors Financial Network (FiNet) simplifies independence for successful Financial Advisors through partnerships to help create an extraordinary business, life, and legacy.

As the independent brokerage channel of Wells Fargo & Company, FiNet provides an option for advisors who are looking for the best of both worlds: individual business ownership and access to the resources of one of the largest and most admired financial services firms in the country.

Advisors who choose to affiliate with FiNet have a variety of resources available to them, including transition support, business valuation services, access to industry research, technology, and top products.

FiNet facts at a glance

Financial Advisors 1,223

Practices 601

Total client assets under advisement $82.2 billion

Advisors’ average length of industry service 19 years

Home Office staff dedicated to Wells Fargo Advisors Financial Network business owners 83*

* These 83 are supported by nearly 4,000 Home Office and back office staff dedicated to serving the clients of Wells Fargo Advisors Financial Network, LLC as well as Wells Fargo Advisors, LLC and First Clearing, LLC. As of September 15, 2014

NJPA

OH

MIWI

MN

ND

SD

ID

WA

OR

MT

WY

NE

KS

UT

NV

CA CO

NM

AZ

AK

HI

OK

TX

IA

INIL

TN

KY

MA

WV

VA

NC

SC

GAAL

MS

AR

MO

LA

FL

DE

CT

MA

ME

NHVT

NY

FiNet practice locations

2 For Financial Professional Use Only

Move your clientsFiNet helps every practice transition to independence by letting advisors focus on what’s most important – their clients

André Cantareira manages a team of experienced transition consultants, commonly referred to as practice liaisons, whose responsibilities include guiding advisors through a successful transition to independence, introducing them to the Wells Fargo Advisors Financial Network culture, and providing ongoing, relationship-based, Home Office advocacy and support. When an advisor makes the decision to move to FiNet, the transition process begins immediately to help ensure a successful replication of that practice’s book of business. André explains, “Our team accepts shared ownership of each practice’s transition process, which ultimately leads up to, and includes, the transfer of their clients.”

Whether an advisor or practice is joining FiNet from a wire house, regional firm, or a different independent model, inherent in the transition is a wide range of details, tasks, and regulatory requirements — the most critical and emotionally charged of which is the way the book of business is transitioned. André says, “We understand the significance of creating an early emotional connection with the advisor based on a mutual understanding and appreciation for what he or she is undertaking. We take time to fully understand the business owner’s book of business, and we anticipate needs and potential obstacles. Also, we ask questions — lots of them. Fewer surprises on the front end equates to fewer surprises on the back end.”

André and his transition team educate and coach advisors throughout the transition process by connecting them to the appropriate resources and information to help ensure success on Day One. This includes product, platform, operations, practice management, branding, supervision, and technology conversations. By the time the advisor’s registrations move to FiNet, he or she is fully prepared to focus solely on clients.

André emphasizes another key factor that contributes to FiNet’s successful client transition formula. He says, “The average FiNet business owner has 19 years of industry service. FiNet is composed of a very tenured, distinguished, and successful group of advisors, and we’ve seen time and time again that after all those years, their clients are truly their clients. The loyalty and relationships are firmly with the advisors.” André continues, “We keep in close contact with each new practice. We want to know how things are going; if our business owners are happy, we are thrilled. If there are frustrations, we are there helping to put them to rest. In the background, we monitor replication rates compared to what experience has shown us to be healthy progress, so we main-tain a proactive presence in the critical post-transition weeks.”

So why FiNet? FiNet is a destination that provides freedom and flexibility in how advisors establish, market, and run their businesses. That flexibility, combined with the strength of the Wells Fargo brand and platform, creates an environment that allows advisors to serve their clients with a purposeful and intimate approach. In addition, each FiNet practice has the opportunity to create its own culture, serve their clients as they see fit, and determine what their legacy will look like.

“By the time the advisor’s registrations move to FiNet, he or she is fully prepared to focus solely on clients.”

André Cantareira, Practice Liaison Manager


“The planning part of the business plays a huge role in our practice,” says Teresa Brokaw, CFP®, CRPC®, CDFATM. Teresa’s business partner, Don O’Neal, is also a CERTIFIED FINANCIAL PLANNERTM professional and Private Investment Management® (PIM®) portfolio manager. An industry veteran of nearly 35 years, Don specializes in formulating investment strategies that focus on clients’ short- and long-term financial objectives. Don’s son, Trent O’Neal, joined the practice as a Financial Advisor in 2009 and has dedicated himself to monitoring client portfolios and assisting in the development of appropriate client-specific strategies and solutions. Trent also oversees the group’s technology efforts, including social media.

Teresa, Don, and Trent had each felt increasingly uncomfortable with the direction of their previous wire house. Once the group decided that pursuing independence was the right path for them, they embarked on an 18-month journey of due diligence and exploration. Teresa explains that there were several reasons they ultimately chose FiNet. “Among other things, we were very impressed with the Envision® planning process1 presented to us during our due diligence. We aim to reduce client anxiety about retirement and increase confidence, and the Envision process allows us to monitor progress for and with our clients.” Don adds, “Through our due diligence, we found FiNet unique in their ability to offer the independence we desired with the support we still demanded.”

Once the team was officially associated with FiNet, they needed, deserved, and received a great deal of support. “We offer our clients a full array of products and services, and they really depend on us. We couldn’t let our service levels suffer during our transition to independence. With some preplanning and organization and a lot of help from FiNet, our transition was very successful. We opened more than 700 accounts in our first six weeks of business. FiNet provided the temporary staff we needed to open all the new accounts, linked services, and ACATS into the system. They also provided lots of training as well as a very useful hotline that became our lifeline,” Teresa recalls.

All change, even the hopeful prospect of becoming a business owner, can create stress. Don says, “As we got closer to the actual transition, our biggest concern was ‘If we build it, will they come?’ The overwhelming positive response from our

clients quickly allowed us to overcome these concerns. It’s been just over one year since our transition, and we are well above the 90% mark of our clients coming with us. We feel it’s been the best decision ever.”

Trent adds, “Having the backing of FiNet’s transition process helped buy us the peace of mind we needed so that we could focus on clients.”

Teresa, Don, and Trent all agree their transition decision wasn’t made lightly. They wanted to make sure they, their staff, and their clients would all end up in a better place. It seems to have worked. Don says, “In our first year in our FiNet practice, we opened more than $11 million in new relationship assets. Clients see us differently now that we’re independent owners. Referrals come more easily. We’ve been pleasantly surprised at the cultural shift in perception.”

1 See page 9 for an overview of the Envision planning tool.

Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN). O’Neal and Brokaw Private Retirement Group is a separate entity from WFAFN.

A Seattle-area practice celebrates one year of independent business ownership — and great success

Teresa Brokaw, Partner, Don O’Neal, Managing Partner, and Trent O’Neal, Financial Advisor – O’Neal and Brokaw Private Retirement Group, 19020 33rd Avenue W, Suite 390, Lynnwood, WA


Serve your clientsFiNet’s products and services allow business owners to serve their clients efficiently and effectively — according to their unique needs

Rick Calhoun’s Innovation & Growth team is responsible for helping FiNet’s business owners serve their clients and grow their practices. The team oversees practice management, prod-ucts and services, internal and external strategic partnerships, practice mergers and acquisitions, and management of FiNet’s pilot programs. It’s a wide umbrella of providing business owners with thought leadership, training, and execution.

“One of the key things about FiNet is our culture,” Rick says. “We believe in our business owners and continually invest in the resources and leadership they need to deliver an experience that not only helps keep clients satisfied but creates advocates.” FiNet’s business owners and advisors benefit from the strong and stable reputation and brand of Wells Fargo and all the resources it has to offer, yet they have the independence of entrepreneurs. Rick explains, “We don’t tell you how to run your practice. Instead, we give you the freedom and support to run it your way. When you affili-ate with FiNet, you will discover unparalleled culture, com-mitment to excellence, dedication, support, and opportunity.”

Rick’s team understands that every business owner’s priority is to serve his or her clients, and that’s why his team has developed strategic partnerships with firms such as

FP Transitions, Myriad Advisor Solutions, and The Oeschli Institute to provide business owners with specialized services that allow them to balance those needs with the needs of running a practice — practice valuation, succession and continuity planning, real estate and space sourcing, benefits, HR, office and payroll systems, and practice and team management/development.

Rick explains this real-life example: “A business owner in the Midwest had been considering his succession plan for several years, and it was a constant topic of conversation in his ‘coaching calls.’ Our director of Practice Management enlisted the help of the FP Transitions team to revise the business owner’s existing succession and continuity plan, and it was during that process that another FiNet practice in the same state contacted my team to inquire about potential practices for acquisition. While the initial business owner was not quite ready to sell, by working with FP Transitions, we were able to bring the practices together and begin the process of implementing a new succession and continuity plan that now involves the first owner selling the majority of his practice to the second over the next five years and then receiving income and benefits for the remainder of his and his spouse’s lives. This is a true example of a win-win for all involved — the business owners, their associates, and their respective clients.”

So why FiNet?Rick says, “The thing that makes FiNet special is the people. While yes, we are part of a very large firm, we all work very hard every day to make it seem small. We are actively engaged in how we can continue to maintain intimacy with our business owners as we and they continue to grow.”

“We don’t tell you how to run your practice. Instead, we give you the freedom and support to run it your way.”

Rick Calhoun, Managing Director of Innovation & Growth


There’s nothing about the story of Veesart Financial that falls under the category of typical. Its founder and Senior Financial Advisor, Steve Veesart, didn’t become a financial advisor until the age of 40. After 10 years with a regional firm, Steve joined FiNet in 2005.

Steve’s partner, former mentee, and now co-owner of Veesart Financial, Lindsey Donovan, was taught about investing at a fairly young age. She was inspired by the lessons her aunt gave her on how you can grow money over time through careful planning and decision making. She started in the industry in business development with a regional financial services firm and was introduced to Steve by her aforementioned aunt. Lindsey recalls, “Steve saw something special in my abilities and became my mentor, even though I had no clients to bring to the table. I joined him in his FiNet practice in 2011.”

Steve says “We have an unusual dynamic and synergy. My clients have become our clients. I’m ready to slow down some while Lindsey is just ramping up her career. I’m 60; Lindsey is 30. Our clients get my experience and Lindsey’s energy and ambition – two for the price of one!” Lindsey adds, “We’re much different ages and also different genders, so our clients really benefit from those varied perspectives. It’s those differences that help us better intuit client needs.”

Steve and Lindsey agree that FiNet supports and enhances both the practice they’ve built, and what they believe in as Financial Advisors. Steve says, “I can’t say enough about how good it feels to own this business. With Wells Fargo Advisors Financial Network, it’s like we have an army behind us at all times. We have the freedom to serve our clients with the products we choose. We own our relationships with our clients. We get all the benefits of a big firm without having to be employees.” Adds Lindsey, “We wear many hats as business owners – we’re the CFO, the CEO, and every other role there is. It’s deeply personal. With FiNet, we can focus on client relationships and still have great bandwidth in terms of products and services. It’s the best of both worlds.”

Steve and Lindsey have a clearly defined client base of Baby Boomers and an understanding of the best way to serve them. Steve says, “Our niche is retirement planning and specifically, retirement income. It’s common for us to work with clients

who have no financial advisor, no tax advisor, no estate planning attorney – they’re just lost. We have a trusted network of professionals who work with us and our clients, many of whom are trying to figure out their own retirements, plus manage the finances of their aging parents.”

A major component of Veesart’s client relationship model relies on the Envision® planning process.1 Steve says. “It helps us ask clients, ‘What is your goal?’ ‘And in what context?’ Look at your assets like you’re cleaning out your garage. Take everything out, look at its value, and ask your-self if it makes sense to put it back in. An Envision plan helps clients visualize and digest the tradeoffs they may have to make in order to get what they want.”

In the end, the mentor and protégé have arrived at a beautiful if unusual partnership – one that has been thoughtfully positioned to best serve their clients now and for generations to come.

1 See page 9 for an overview of the Envision planning tool.

Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN). Veesart Financial is a separate entity from WFAFN.

5

From mentorship to partnership, this Memphis practice aims to serve clients with excellence, now and in the future

Lindsey Donovan, Associate Financial Advisor and Steve Veesart, Senior Financial Advisor – Veesart Financial, 8245 Tournament Drive, Suite 130, Memphis, TN 38125


Grow your practiceEvery FiNet practice has a team dedicated to its long-term growth and success, in the beginning and over time

Alex David describes his role with FiNet as one that can be viewed through a couple of lenses. First, as head of Branch Development, Alex oversees FiNet’s talented team of regional directors and associate regional directors who help business owners and advisors assimilate to independence and who manage and maintain relationships over the growing and changing life cycle of their practices. Alex says, “My team spends most of its time in the field working with our Financial Advisors. Continued intimacy with our business owners is essential to their practices’ success. Post-transition and always, they need to know the Home Office still cares and is advocating for them at the highest levels of the firm.”

Second is the marketing side. Alex says, “Marketing provides business owners insight to the innovations and industry trends occurring in the independent space. We’re out there in the field every day, taking the pulse of the business so we can help FAs visualize their practice from Day One.”

Alex helps FiNet’s business owners grow and evolve their practices by making sure FiNet’s regional directors and associate regional directors are a top field force. He explains, “Our business owners at all times have people dedicated to their growth who help them identify opportunities to buy and merge with other practices, assist with FA recruitment, and grow their books, client by client.” He adds that his team has expertise in “matchmaking” practices seeking to merge within and outside of FiNet. “Our people know what’s going

on in their marketplaces. They are the eyes and ears for our business owners. Our regional directors build deep relation-ships with practices. They know how they started and what they’ve achieved as well as what their long-term goals entail.”

Alex is passionate about why he believes FiNet is the best choice for financial advisors who are exploring independence. He says, “We are consultants and advocates for business own-ers and focus on their immediate and long-term success.”

So why FiNet?Alex says FiNet has expertise in anticipating the right paths to growth for each unique practice. It has the scale and scope of a wire house to provide capital to jumpstart an advisor’s business while offering him or her the advantages of business ownership. “With FiNet, you have the ability to have the scale and scope of a wire house but have the pride and entrepre-neurialism of business ownership. Your growth potential is in your hands,” he says.

“Continued intimacy with our business owners is essential to their practices’ success. Post-transition and always, they need to know the Home

Office still cares and is advocating for them at the

highest levels of the firm.”

Alex M. David, Head of Branch Development


A Denver-area practice grows by leaps and bounds

For Schwartz Mabry Private Wealth Advisory, growth has been a top priority since its inception. Managing Partner Todd Schwartz explains, “We have channeled our energy and resources toward growing through adding financial advisors in one of three categories: becoming an associate; sharing resources while maintaining separate practices; or joining forces either through association or maintaining separate practices with the intent to sell their practice to us in the future. We have been blessed with the addition of one practice in each category, and FiNet’s experienced growth team has provided counsel and direction at every turn and milestone.”

The senior leaders at Schwartz Mabry have built a list of prospective advisors through networking with former colleagues and investment wholesalers, inquiring about advisors they know who might be open to independence. It’s a ritualistic courting with the net result being the attraction of top-tier advisors who want to join Schwartz Mabry or form dotted-line, mutually beneficial relationships.

Todd and his partners have found FiNet’s “Recruiting in a Box” program to be an especially helpful resource in attracting quality advisors. Todd reports, “The seven-step process is valid. The secret to any process is consistency. Time is the great exploiter of hard work and determination. Sometimes things happen more quickly than others. My experiences have taught me to be extraordinarily patient, especially when it comes to other people’s decisions.”

Schwartz Mabry’s growth has been measured and deliberate, and their patience has yielded a second location. Todd says, “We are fortunate to have organized a mutually beneficial arrangement where we have satellite offices in Cincinnati, Ohio, and downtown Denver, Colorado. We greatly appreciate FiNet’s open-mindedness and support toward our exploration of non-cookie-cutter opportunities, and if the right situation presented itself again, we would naturally entertain the possibilities of additional office locations.”

Todd and his partners’ talent for balancing patience with expansion is embedded in their five-year outlook. Todd says, “Our goals for the future are very specific:

1. To have a total of 11 Financial Advisors, including ourselves, as part of a collegial and professional work environment that delivers the highest quality of advice and serves the best interests of our clients first. 2. To successfully complete the purchase of up to two advisory practices. 3. To achieve maximum operating leverage for all affiliates of our practice. 4. Continue to help other practices find a home that best suits their clients and themselves.”

Todd says, “FiNet has helped propel our world toward what our goals were five years ago. They are instrumental in guiding us in the direction we believe best suits us. We are confident that in the next five years we will achieve our vision of success.”

Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN). Schwartz Mabry Private Wealth Advisory is a separate entity from WFAFN.

Todd M. Schwartz, CFP®, Managing Partner, PIM Portfolio Manager, Garner A. Mabry IV, Managing Partner, Branch Manager — Schwartz Mabry Private Wealth Advisory 6400 S. Fiddler’s Green Circle, Suite 1840, Greenwood Village, CO 80111


FAQsQ How long does it take to open up my own office?

A FiNet will work closely with you to set a target date for your opening. During the transition period, we’ll work with you to develop a plan; finalize arrangements for your office space and furnishings; prepare signage, stationery, and marketing materials; obtain and test your technology; complete all required registration documents; finalize your exit strategy; and prepare to transfer client accounts after your resignation. Depending upon the size of your practice, this time period may range from 30 to 90 days.

Q In addition to the Series 7 and Series 63, what securities registrations are required to open an independent office?

A An independent broker-dealer’s office is considered to be an Office of Supervisory Jurisdiction (OSJ), which requires daily supervision by an individual with a Series 24 registration. In addition, you will need any registrations applicable to the type of business you or any of your registered representatives transact on behalf of their clients — for example, Series 31 for managed futures and Series 65/66 for investment advisory business.

Q How do I set up my business?

A There are several ways to establish your new business. You may want to create a sole proprietorship, a limited liability company, an “S” Corporation, or a partnership. Our strategic system partners can guide you toward the right legal entity. You will decide on the location for your office and determine your employees’ salaries and benefits. We recommend that you work closely with your accountant and FiNet’s strategic partners to determine the most favorable setup for your business.

Q Do you offer any start-up capital?

A Start-up financial assistance is available through various non-equity loan capitalization programs. Your regional director will give you details on loans and start-up financing options.

Q Am I taking on additional risk through business ownership?

A There is a misperception in the industry that going independent is risky. Although you will own your own business, WFAFN is still responsible for supervising your securities brokerage and advisory business. You will work closely with your regional supervisor to make sure your business is compliant with industry rules and regulations. In addition, you will participate in annual compliance audits. You will also be covered by an errors and omissions insurance policy.

Q How much time and paperwork will be involved in supervising my practice?

A It varies depending on the business mix of your practice. Significant resources have helped reduce the time required to provide proper supervision.

Q Can I add more Financial Advisors to my practice?

A Yes, with WFAFN approval.

Q How will I access client accounts, get information, and place orders?

A All account transactions and maintenance are executed through the Wells Fargo Advisors SmartStationSM desktop solution.

Q How do I get paid and how do I pay for business overhead expenses?

A FiNet distributes 1099 income to licensees and any registered Financial Advisors. All employee and overhead expenses are administered by the licensee through his or her choice of business entity.

Q How do you compare with other independent firms?

A We leverage the size and scale of one of the nation’s largest financial services firms. Our platform is designed for professional, successful advisors who want to own their own practices without giving up the products, services, resources, and support that both they and their clients are used to receiving. Our minimum for affiliation consideration is $300,000 in production.

Q What name will be on my business cards, stationery, and signage?

A This choice is yours. You decide whether to leverage the Wells Fargo Advisors Financial Network name and brand, create your own brand, or a combination of the two.

For Financial Professional Use Only 9

1 Wells Fargo Advisors’ Envision planning tool helps Financial Advisors get to know clients’ specific needs and goals in order to create tailored investment plans. Unlike other planning processes you may have seen, an Envision investment plan can help you help clients uncover goals, determine which are the most (and least) important, and track their progress toward achieving them. It also has the flexibility to account for any possible changes they may face ahead.

Envision® is a registered service mark of Wells Fargo & Company and used under license.


The experiences discussed by the Financial Advisors in this brochure may not be representative of the experiences of other Financial Advisors.

Wells Fargo recognizes and values the diversity of its employees, customers, and business partners. Wells Fargo & Company is an Affirmative Action and Equal Employment Opportunity Employer, Minority, Female, Disabled, Veteran. Wells Fargo Advisors is the trade name used by two separate registered broker-dealers and non-bank affiliates of Wells Fargo & Company: Wells Fargo Advisors, LLC and Wells Fargo Advisors Financial Network, LLC (members SIPC). Any other referenced entity is a separate entity from Wells Fargo Advisors Financial Network, LLC.

© 2014 Wells Fargo Advisors, LLC. All rights reserved. 1014-02103 [94442-v1]


For more information about becoming an independent Financial Advisor with FiNet contact us: 1-866-485-5383 or visit wfafinet.com.

Meet our Regional Directors

Charles Cornett, Southeast

Kent Whitaker, NortheastJoe Line, Midwest

Ryan Thompson, Pac South

Jason McLaughlin, Great Lakes

Margo Vuicich, Gulf Coast

fall | winter 2014 independence, simplified · business owner’s book of business, and we...

Documents