How a multi-year mentor relationship protects client trust and ensures a seamless transition
Jennifer Waterman was working as a licensed assistant at IPC when her manager, Ron Harvey, approached her with a compelling offer: he wanted her to be his successor.
“He told me I’d be good at running my own business,” she recalls, noting that the vote of confidence boosted her faith in her own abilities at a time when she was making a career change from compliance officer to financial advisor. The conversation marked the beginning of a multi-year mentorship that led to Waterman taking over Harvey’s business when he retired in 2023.
Since then, she’s scaled the original book to about 350 families. It’s an accomplishment she attributes to Harvey’s guidance and the care he took in teaching her the nuances of running a business. “I don’t think I would be this successful if it hadn’t been for Ron,” she says.
The mentorship behind Waterman’s growing business is part of a larger trend among senior advisors, who increasingly view structured guidance as a crucial element of succession planning. According to IPC’s recent Advisor Succession Planning survey, 47% of advisors without a succession plan said they would begin one if they had access to a formal mentorship program. This sentiment underscores the reality that a smooth transition isn’t just about selling a book of business — it requires carefully preparing a successor to take the reins while maintaining client trust.
A phased timeline ensures a smooth transition
To streamline the succession process, Harvey guided Waterman through a progressive, multi-step transition. As part of their arrangement, she spent three years earning her Certified Financial Planner (CFP) designation. “Ron wanted whoever succeeded him to ensure that his clients received the same level of care,” she says.
Harvey also introduced her to clients before gradually bringing her into meetings. “I sat at the back of the office and listened to how Ron conducted a meeting, what his process was and how he chose investments for clients,” she says. “Quite a few months in, I started sitting beside him and actively participating."
In the final 18 months before the handover, the roles reversed. “He sat at the back of the room and I took over,” she says. Harvey would observe and offer feedback, helping her build confidence before fully stepping into the role.
The process gave Waterman time to understand the nuances of running a business while also building relationships. “We took a very careful approach to it, and I think the clients liked that,” she says.
Retaining clients through mentorship
The proof of their strategy was in the client response: many stayed with the business through the transition.
For Waterman, maintaining that trust came down to the deep alignment she and Harvey built over the years. She stresses that the most crucial factor for a successful dynamic between mentor and mentee is being on the same page when it comes to investment philosophies and client relationships. Because she and Harvey shared the same approach to business planning and a high level of client care, the handoff felt seamless for everyone involved.
The benefits of planning ahead
But this kind of mentor-mentee relationship takes time to develop and foster.
Waterman encourages senior advisors looking to pass on their businesses to begin mentoring a successor several years in advance, providing enough runway for a smooth transition. “A successor should become a part of the business with enough time that the majority of your clients will have the opportunity to meet them, or at least the opportunity to hear from them,” she says.
While she plans on working for at least another 15 years, Waterman is already thinking about the type of advisor she’ll mentor to take over her business when the time comes.
"They have to be someone who is a people-person, and not a people-pleaser, in that they’re willing to sit and listen,” she says. “Because when people are talking about their money, they're talking about something that is exceedingly personal. Everything else can be taught.”
Waterman also stresses the importance of being open as a mentee. “You need to be willing to listen to suggestions and criticisms,” she says.
Mentorship beyond succession
A strong mentorship doesn’t have to end once the transition is complete. Waterman notes that she still turns to Harvey as a sounding board. She’s also leveraged IPC’s Pinnacle program , which helps financial advisors plan their succession, to connect with other female advisors who support her ongoing professional development.
Ultimately, Waterman stresses the important role mentorship can play in succession planning. For her, having a mentor was a turning point in her career. “It gave me the confidence and feedback I needed to succeed,” she says.
For those who are new to the industry and eyeing a path to ownership, her advice is simple: "Take whatever mentor opportunities that are presented to you."
