If you can’t afford to buy talent, train your own

Capstone Affluent Strategies is putting 40 young planners through a three-year training and mentoring program with the idea that they will become the backbone of the firm and engine of growth down the road.
Since February, the Irvine, Calif.-based advisory firm has recruited recent graduates of top schools and is pairing them with senior financial advisers. During the three years, these adviser associates earn a $45,000 base salary, other benefits, plus commissions once they are licensed, said Darin Pastor, Capstone’s chief executive.
The structured program of coaching includes education on creating a successful business, as well as hands-on experience working for the senior adviser setting client appointments and confirming attendees at client seminars, he said.
“Capstone invests heavily in the skills that advisers need to deliver sound recommendations that help to cement positive relationships,” Mr. Pastor said. “This is how we are going to separate ourselves from everyone else — by having the best and the brightest, and making sure they have the degrees to back them up.”
Angie Herbers, a consultant to advisers, said formal training programs for young advisers are necessary these days because the cost of hiring experienced advisers has skyrocketed out of control.
Lead adviser salaries have gotten so high that “it’s nearly impossible for firms to hire that talent,” she said.
Firms are finding that by starting with younger recruits and pairing them with a team for training, those young advisers can advance to a lead-adviser role down the road at a lower compensation rate than if they hired them initially for that role, she said.
Kamden Burke, one of Capstone’s adviser associates, is paired with his brother as a mentor. He spends the majority of his time working with his brother but feels like he has access to all of Capstone’s management team.
“It’s a great opportunity to learn from those with experience,” Mr. Burke said. “The biggest thing I’ve learned is how to speak organically about financial matters.”
He also hopes to take advantage of another Capstone program that reimburses employees 50% of tuition for master of business administration programs at top schools. Mr. Burke, 25, plans to get an MBA in finance. Under the program, he’ll have to sustain a B average or higher, successfully graduate and remain with the firm for at least three years.