Return to Indie Island

In 2007, I wrote a piece for newly independent advisors called "Surviving on Indie Island." I leaned on the island analogy because many advisors felt remote, disconnected, and isolated at that time. Horsesmouth was kind enough to publish a version called 8 Tips for Surviving as a Newly Independent Advisor.?

Fast forward 17 years to 2024. I thought it would be fun to revisit the Indie Island analogy and share some of my thoughts and perspectives on how far the independent channel has come and how it continues to grow and evolve.?

A Desired Destination

Back in 2007, advisors who sailed to Indie Island were truly making a leap of faith into uncharted territory. Would the environment prove too hostile? Could it weather financial storms? Advisors had to figure it out as they went, letting their pioneering spirits spur them on.

Today's Indie Island is well-traveled and well-documented, with much more status on the map. It has proven resilient during many storms, including erratic market headwinds, an evolving regulatory climate, and a pandemic. The infrastructure is solid and time-tested. Plenty of island guides can help newcomers plan their voyage and navigate the terrain. The island also offers an ideal environment to leverage the blue ocean of opportunity in wealth management, including the largest wealth transfer in history.

Best of all, it is no longer reserved for pioneering entrepreneurs only. It can now accommodate those seeking varying levels of freedom, flexibility, and control.?

As a result, advisors are taking an intentional, long-term view of their business from a growth and ownership perspective as they see the well-documented valuations, M&A activity, and the ability to control their own legacy. They also openly share their motivations, best practices, and first-hand accounts of their journeys. Many have become advocates and ambassadors, beating the drum for independence and encouraging colleagues and friends to make the journey.

Shifting Tides, Winds of Change?

Twenty years ago, Indie Island was much more mysterious. But thanks to increased awareness fueled by media coverage and social media, it is no longer an exotic locale filled with a small group of intrepid explorers. Instead, it's home to a bustling metropolis and a steady stream of newcomers, from solo practitioners to sophisticated teams.??

The pandemic also contributed to this shift. Many people (not just advisors) realized there was more to life than work and that work could successfully happen outside a traditional office. During the pandemic, indie advisors demonstrated their nimbleness, adaptability, and creativity, proving yet again that this model makes it easier to adapt and innovate on the fly.

These shifts have impacted the overall assessment of the independent space. Many advisors are embracing a more holistic approach to better serve clients' changing needs and achieve a better work/life balance, all of which align more with the independent model.?

Client sentiment has also shifted. They've become more discerning, raising the bar on what they expect from their advisor. The fact that independent advisors have been so successful over the last twenty years is evidence that clients welcome this transition.?

Migration Patterns: Who's Coming—And Why

Over the last twenty years, there's been more movement to independent channels, thanks to increased awareness, choice, affiliation options, and models. The voyage to Indie Island is also easier, thanks to better education, technology, and transition resources with increased economic assistance and sophisticated transition teams and processes. Plus, concierge-like services can offer more of an all-inclusive experience.

As for demographics, younger advisors see the potential for growth, freedom, flexibility, and quality of life. (Quality of life is essential for Millennials and Gen Z.) On the other hand, older, seasoned advisors are coming for "a better sunset." They're finding that the independent channel offers more attractive, flexible, and customized options to monetize their life's work and "pass the torch" to the next generation while maintaining control over their client care and legacy.

It's not just advisors who are making the move, either. As independent firms grow, they must add talent. This talent includes traditional advisory roles and support staff as well as new areas like HR, marketing, technology, and management. Talented people are migrating from other industries and more corporate environments, lured by many of the benefits mentioned above.?

Intra-Island Movement: Freedom to Move About the Island

Interestingly, much of the migration has been within the independent channel itself. This could be because of unwelcome changes in a firm's culture, service, and platform due to mergers, acquisitions, or other changes. In addition, more advisors are outgrowing their current firms because of complex needs and/or the desire for greater flexibility. As a result, the shift from the traditional IBD model to the more fiduciary-focused, transparent, and flexible RIA model has become more common.

Typically, This transition can happen with little or no friction if the advisor works within a truly independent model. However, a growing trend of restless employee advisors within independent firms desiring more independence and ownership could face challenges due to potential contract restrictions.??

A Diverse and Evolving Landscape

The landscape in the independent space is also incredibly diverse. You'll find all types of advisor practices, from small solo lifestyle practices to larger indie empires and dynasties, all with varied geographic footprints, business models, and areas of specialties.

Of course, like any beachside, the landscape has evolved over the years, impacted by waves of consolidation and changes to the regulatory climate. Many firms no longer exist or are unrecognizable, especially in the IBD space. At the same time, we are witnessing a surge in new firms, platforms, and affiliation models born out of advisors' expanding and evolving needs.

A Thriving Ecosystem of Support and Services

A cottage industry of support has also sprung up and continues to expand, creating innovative products and solutions for advisors and firms to grow, run their practice, and better serve clients. These areas include technology, compliance, marketing, investments, recruiting, training and development, succession planning, practice management, coaching, and more.? These firms not only provide essential resources but also enrich the entrepreneurial environment, fueling innovation and enabling independent advisors to flourish.

Private Equity: A Welcome Arrival or Invasive Species?

The independent space has also attracted the attention of private equity firms, sparking both excitement and concern. On the surface, this influx of interest might seem beneficial; private equity can provide the capital needed to address succession planning, drive growth, and enhance service offerings.

But will a growth-at-all-costs mentality choke out the client-focused mission and erode the ethos of independence? Only time will tell if indies remain vigilant and true to their values.??

Culture of Collaboration + Personal & Professional Harmony

One of the best aspects of the independent space is its strong culture of collaboration, bringing together advisors from diverse backgrounds and experiences. Most independent advisors embrace the philosophy that a rising tide lifts all boats, fostering a collegial atmosphere of mutual support and openness to sharing knowledge and best practices.? Many, also embrace their role as industry stewards, committed to nurturing growth and upholding the profession’s reputation. This abundance mindset and cooperative spirit is a breath of fresh air compared to the often more competitive ways of traditional Wall Street firms.??

The independent model also contributes to a greater sense of well-being.? Advisors enjoy more flexibility, enabling them to participate in life's simple joys-like driving their kids to school or being present for family moments. The relentless hustle culture, once a badge of honor in traditional firms, is no longer the norm. Instead, the independent space tends to prioritize a balanced approach where health, personal fulfillment, and professional success coexist.?

Many offices promote a relaxed pet-friendly environment, and firms often tout "no @$$hole" policies (although how this policy is enforced varies) in an effort to cultivate a positive and respectful workplace.?

With this balance, advisors are able to reignite their inner fire and design the business and life they've always imagined, while also having a little fun!? With their new freedom, advisors become more energized, having more time for themselves, their families, and their community.?

It has been one of my greatest pleasures over the years to witness advisors embrace this freedom while seeing their creativity, authenticity and humor on display.?

The Evolving Community: Finding Your Tribe and Staying Connected

Unlike decades ago, staying connected on Indie Island is no longer a challenge. (If an advisor still feels stranded in 2024, it’s time to lift their head out of the sand—that's on them.) Finding a tribe has become easier than ever, even for solo advisors or small teams. Just as the number of independent options has expanded, so have advisor communities. There are now countless industry groups, business associations, masterminds, peer-to-peer networks, coaching collectives, conferences, and events.

There are more events and conferences than ever, with a variety of specialized focuses, most notably, they have evolved to be more fun and engaging offering a dynamic blend of learning, social interaction, and entertainment and providing opportunities for like-minded advisors to come together, share knowledge, and build lasting connections.

What's on the Horizon

The only constant is change, and the pace of change is only accelerating. The independent channel stands out for its unique ability to adapt, evolving in response to both anticipated and unforeseen shifts.

As success, growth, influence, and investment continue to surge within this space, the challenge will be to preserve the culture of independence and avoid slipping into the corporate and bureaucratic environment that many advisors left behind. If that balance is lost, advisors may once again find themselves seeking new territory—perhaps an "indie archipelago" of sorts.

For now, however, the independent landscape remains vibrant and inviting. Though not without its imperfections, the independent model has become a beacon for the positive transformation that the financial services industry needs.

Wondering if it's time to join the growing community on Indie Island? Let’s connect and discuss your potential journey to independence.