Barbara G. Jaffe is the senior partner of the Jaffe Group in the Jacksonville, Florida, office. Now a Family Wealth Advisor and a Director at Morgan Stanley Smith Barney, she started out at Bache, Halesey, Stuart Shields 33 years ago and remained through all its successor companies, including Prudential-Bache, Prudential Securities, and Wachovia Securities, before moving her group to Smith Barney in 2008.
During her long career, Barbara has received many awards and accolades. She was a member of the Prudential/Wachovia Chairman's Council and in 2008 she received the Wachovia Way award for outstanding leadership. In 2005, 2006, 2007, and 2008 she was recognized by Barron's magazine as one of the Top 100 Women Financial Advisors in America.
But maybe Barbara's most fascinating achievement is the fact that since 1994 her group has included her two sons, Bradley D. Zimmerman and Sanford I. Zimmerman. Here she shares her thoughts about the challenges and advantage of working with her children every day.
We're so curious to hear how your sons became your partners.
They were born into it! [laughing]
So how did you get started?
I got into the business in 1978, after I got divorced. I had been a newspaper reporter, which was a lot of fun but there wasn't much finance to it. I was 30 years old and had two little kids and no money. I had always done investing on my own with my ex-husband, so I thought it might be an interesting career. Then I saw an article in the newspaper about Bache, Halsey, Stuart Shields. They had an office in Jacksonville and it didn't mention them having any women, so I marched in and told them they needed me. I founded the Jaffe Group there in 1984.
And what about your sons?
When they were little I used to bring them to the office on Saturday morning while I worked, and they would watch cartoons and play under my desk. This was all they knew and they thought it was exciting. They didn’t realize how challenging it could be! [laughing] They thought, "Look, Mom doesn't work that hard!" Even though I was there twelve hours a day!
Because to them it was playtime.
Correct! Then they were both in college in the early 1990s, when tech stocks were humming. All their friends were into the market and thought it was really cool. I just thought they were going to do their thing. But in 1994, when the older one, Brad, was getting his MBA and the younger one, Sandy, was graduating, they suddenly called and said, “We want to come in the business." I said, “What?!"
So they started the same year?
The same day! First they went to New York to train in the intern program at Prudential. I thought they would stay there. But then Brad decided to move back to Florida, and when Sandy realized that, he said, "We're coming together." It was kind of hard to have two new people on the same day!
And not just any two new employees.
Right.
When they joined the group, did you have other partners?
Yes, but I was the senior partner. I had always warned them, “There’s a chance my sons might come into the business." When they did, I shared my percentage with my sons so I didn't take from anyone else.
What were some of the growing pains?
As a senior member with majority ownership, I would normally have a certain level of influence on decisions.
In the past, if I would make a suggestion, the staff would say, "That's a really good idea," but my sons would say, "Yeah, yeah. Why do you think that?" I would have to prove why my idea was a good one.
Is there an upside to having to convince them?
Definitely. It makes me question what I do and makes me think things out for sure. You don’t get a roomful of “yes" people.
Any other hurdles?
It took me several years to realize that they each had their own talent. It wasn't like I had gone out and recruited for positions I wanted to fill. As they developed I really had to figure out their strengths, and then help them build their business around that.
What did their talents turn out to be?
Sandy, who is 37, is very community oriented and philanthropically active. He served as president of our synagogue, the youngest ever, about six years ago. Because he had so many duties with that, we had to hire an assistant to help us, but his involvement in the community gave him the opportunity to develop many new professional connections. We still support his community activities.
Brad is very analytical. Even though he's only 41, he’s shown the ability to attract and retain high net worth sophisticated investors, usually older than him, who trust him. I may be the one who goes to the social events with clients, but he does the analytic part of the work.
How has your clientele changed since your sons joined the business?
When I started my clients were all people I knew from the newspaper industry and politics, because I had also run a political campaign. But now it’s expanded to a very wide community base with a lot of referrals. We also get a lot of referrals from my husband, who's a CPA. Without my sons we couldn't have handled so many clients.
Thinking back to when you got started, was this a good career when you were bringing up children on your own?
It has been great. I worked hard but I also got a lot of emotional and financial rewards. It meant that I could do what I wanted for my kids. They could go to private school and college, and they could travel. And my husband and I have been able to travel and bike all over the world. It's been more than I ever dreamed.
What sort of advice would you give to somebody who’s considering bringing their children into the business?
It’s very challenging, and you really have to be willing to give up some of your control and compromise.
What's the upside?
We are always connected. Over the weekends when we go to see one of the grandkids in a soccer game, we end up talking about strategy. Then when we come back into the office, we bring the rest of the group into the loop.
And for you personally?
It's great, because how many mothers could imagine being with their sons on a daily basis? They're 37 and 41, and I still get to talk to them every day.
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