Independence

More times than not, we have conversations with advisors or planners, and they want to explore the independent path. #MPG has independents and RIAs among our large portfolio of firms so that we can provide a good offering for our clients. Our belief is different firms work for different individuals and what they are trying to achieve in their specific situation.

Many of the advisors we work with want to have a better understanding of the independent landscape and what that entails whether it is the 1099 route, affiliating with an #RIA or launching their own. In over half of those advisors decide to go with a traditional #wirehouse because it ends up being a better fit for them.

“Independence” has an allure that seems to draw advisors in and is one of the “sexy” buzz words as well. To truly understand about going the independent/RIA route advisors must be prepared to wear the many other “hats” that come with it. ?For some advisors making the transition to go to an independent/RIA can be an amazing and life changing experience, but at MPG we have noticed that it is the #prepared advisors that successfully make the transition.

Below are some ideas to think about before making a move:

1. Resources/Specialists. As one advisor shared with me, they would rather have all the resources that a #wirehouse has to offer than a higher grid rate. For example, the specialists and/or subject matter experts that you can bring in to speak with your clients and enhance the overall relationship are provided by the wire houses. As an independent advisor you may not have access to the same level of support expertise, or you will have to add it to your practice out of pocket. All Independent/ firms and RIAs are different and offer different levels of support, MPG will help navigate which firms are the best fit for your practice.
2. Do you want to be a business owner: Some advisors love the allure of running their own business and practice, building their brand in their own way. If this is you as an advisor than exploring the #RIA space can be the right fit. If running and building your own business in addition to managing your advisory practice seems a bit daunting, then operating out of an established wire house may be the best fit. A large #wirehouse that has a name and brand already established which allows advisors to focus on growing their book and servicing their clients.

Alot of times, it boils down to advisors wanting more control over their practice but not wanting to wear the hat of business owner. We help them find the right mix and combination for that. I always like to ask advisors when we are having our first call, “what do you like about your current firm?” because that can be just as important as what you don’t like. It is important to have that balance and a combination in place. In that same vein as we share with advisors in any transition there are pain points and things that you will have to sacrifice. The goal in any search is to go back to creating that list of why you want to move and what are those ten most important things. We touch on this in more detail in our article, (1) Exploring Your Timeline for Making a Move or Transition as a Financial Advisor | LinkedIn .

Please reach out if you would like to discuss this topic further or exploring the best path for you.