- February 16, 2024
Going Independent as a Financial Advisor: 6 Signs It’s Time
If you’re already thinking of going independent as a financial advisor, you’ve likely seen it all when it comes to the pros and cons of being affiliated with a large corporate wirehouse entity. While there are certainly benefits like name recognition and marketing support that come with managing assets within their established systems, you’ve also had your fair share of dealing with bureaucratic red tape, pushing proprietary products, and never feeling truly in control of growing your own client-centric practice.
Day in and day out, you’ve sacrificed independence to play by their rigid rules, wondering if there might be greener pastures waiting on the other side. If any of the following signs seem all too familiar, it may be that the grass truly is looking a lot greener going independent. Read on to discover if it’s time to cut ties and stake your claim as an independent financial planner.
6 Signs Going Independent is the Right Move
Considering a departure from the wirehouse as a financial advisor can be a daunting task, given the abundance of alternatives and the intricacy of timing the shift.
Recognizing the right time to move away from the wirehouse’s inflexible structure can be as crucial as knowing the right next steps. If you’re contemplating if it’s time to leave the safety of the wirehouse and tread towards autonomy, here are six signs to look out for:
- The wirehouse’s “one-size-fits-all” management style no longer suits you: The vast scale of most wirehouse advisory practices means advisors often find themselves under a uniform, top-down management style. This model can be beneficial in preventing costly errors for new advisors; however, experienced advisors may feel it significantly limits the services they can offer. If you feel confined by this model, independence could provide a wealth of opportunities better suited to your clients’ needs.
2. Your relationships with clients are stable: The path to independence is paved with strong client relationships. An advisor turning independent can expect approximately 70% to 80% of their clients to follow within six months.
But remember, client loyalty is not a given. Taking steps to strengthen your client relationships can ensure you’re ready to hit the ground running in the new practice that you build after going independent as a financial advisor.
3. You desire a more supportive, personalized work culture: In today’s landscape, work culture is paramount. The values, ethics, and client services a firm engages can greatly impact an advisor’s satisfaction. If you’re craving a work culture that aligns with your personal and professional objectives, going independent as a financial advisor could be the answer.
4. You have a viable business plan: With options ranging from supported independence to complete autonomy, there’s an independent path for every advisor’s plan and goals. Understanding your strengths, the services you want to provide, and your pricing model is crucial. If you have a business plan that can adapt with your practice, it’s a strong indicator you’re ready to leave the wirehouse.
5. You have the right transition resources at your disposal: Considering a departure from the wirehouse requires a robust support team. Our support teams here at Integrated Financial Group can provide the options, advice, and transition resources to navigate your next steps after the wirehouse. We help advisors effortlessly navigate the complete transition process from start to finish.
6. You‘re yearning for more autonomy: Wirehouses bring structure, but they also bring limitations. If you’re yearning for the freedom to make decisions about your own business operations – from investment product choices to marketing strategies – it’s a clear sign you’ve got what it takes for going independent.
Going Independent as a Financial Advisor
If these signs resonate with you, it might be time to leave the wirehouse and embark on your journey towards independence. Going independent as a financial advisor can open up a whole new world of possibilities. It’s a decision not to be taken lightly but remember, the road to independence is paved with opportunities to serve your clients better and build a business that truly reflects your values and vision.
Integrated Financial Group extends a comprehensive portfolio of support, tools, and resources to independent financial advisors, empowering them to administer a successful client onboarding process. The provision of these resources, combined with a platform for continuous learning and development, allows advisors to customize their approach, ensuring that every client’s financial journey is met with unparalleled service and expertise. This strategic support system underscores the group’s commitment towards enhancing advisor capabilities and fostering successful, enduring client relationships.
