Going Independent from the Bank Channel

Six months ago, we made the huge step from a Bank Financial Advisor, where we spent 16 years, to an Independent Financial Advisor. This was a decision that at the end of the day, was going to make us and more importantly, our clients, more successful. The ability to act independently on all decisions such as investment products, banking products, insurance products, fees, marketing, business expense, etc. has truly been eye opening and uplifting. As most advisors that make the move, you run into your fears and you get advice and opinions from many people on what the right approach is. I can proudly say we have accomplished many goals and addressed many of those unknowns when you make a move like this.

1.      Question: Isn’t the expectation being that the average bank advisor moves 50% of his book and a good advisor can move up to 80%? Answer: We passed 100% of AUM last month in our 5th month. You will gather clients you didn’t think you could and you will lose others you didn’t expect to.  That advice was accurate from many.

2.      Question: Why would you leave a great referral provider like a bank? Answer: We actually received more referrals from clients in our first 5 months than we did in the last 2 years at the bank combined!

3.      Question: Running your own practice is so time consuming! Do you really want two careers?   Answer: Everything is on auto pay for bills. I probably spend about an hour a week on business operations and mainly, that is the creative, fun stuff like client events and newsletters. Better than the 2-4 hours a week on conference calls discussing goals not related to the client.

4.      Question: Compliance and Support are time consuming, aren’t they? That is exactly why we affiliated with Raymond James and Concurrent. All that is covered! 

5.      Question: Will the payout workout to be the same after expenses? Answer: 65% net of expense as 1099 income. I would say that is better than 40% W-2. That obviously varies based on payout and your expenses. 

6.      Question: How long did it take you to sign your lease, get furniture, setup phones, TVs, marketing material, plan for the move, etc.? Answer: It was just two of us and it took about a month and a half from the time we decided to make the move to the time to go forward. Yes, this part was time consuming and emotional in that short period of a time. But obviously worth it 6 months later! You only make this kind of a move once! Most people take a lot longer and I would suggest it if you have the time. Stress level was for sure high and emotional.

7.      Question: What is worse after the move? Answer: Not much. I guess more time on your hands as you don’t have the 40 emails to respond to a day. I write maybe 6 emails a day and normally they’re to clients.  Sometimes you feel you have too much time on your hands. 

8.      Question:   Regrets, do you have any? Answer: I am somewhat of a perfectionist so you will always have those regrets on who you should have talked to prior or how you handle the big day. I regret leaving the way you have to leave in this business. No one knows but you and you do feel alienated because of that.  It isn’t the 2 weeks’ notice route many jobs offer where you can say your good byes. It is the way of the business. 

Things you want to ask yourself before you go:

1.      Do you do comprehensive financial planning for your clients or at least goal based planning? 

2.      How strong is your relationship with your top 20 clients?

3.      Are you a self-starter and motivator?

4.      Do you have an entrepreneurial mindset and drive?

Answer those 4 questions honestly, and I mean honestly. If you do, call me and let’s talk.