3. Do you desire a higher income potential?
This factor mattered more to me when I first started than it does today, but it’s still extremely important. If you build your practice within the wirehouse infrastructure, they own that revenue stream and, ultimately, it’s their equity. That means if you make the switch later on, you’ll potentially have to deal with legal ramifications when you try to move clients with you. Now if you start building your own book of business as an independent RIA, you can build equity as you increase your client base because you’ll own the revenue stream it produces.
More so, if you do a little bit of digging around, you’ll find that most of the things that a wirehouse or large independent firm provides to you as an employee advisor are accessible for free or at extremely low costs. For example, I now operate my firm at a fraction of cost and utilize much more robust tools, resources, and investment platforms.
4. Are you ready to maximize client outcomes?
The fourth influencing factor that drove me to go independent and start my own RIA was that I wanted to maximize my client outcomes. I wanted to provide my clients with the very best resources, tools, and strategies they needed in order to maximize their aggregate results.
And now I’m able to base all of my decisions on this driving factor. At Resilient Financial Planning, I mostly work with business owners, tech professionals, and engineers and everything we offer speaks directly to them to maximize their outcomes.
For example, I recently built a free online retirement planning course called the “Retirement Accelerator” program. The course is 100% free and helps individuals over the age of 50 take action and get started with their planning. After the three week course, if the student is a good fit to become a private client, I invite them to complete an application. Now if I was working within a wirehouse or large firm, like Edward Jones, Merrill, or UBS, this type of initiative wouldn’t be possible. The number of compliance, regulatory, and marketing hoops that I would have to jump through would be daunting and would make this entire effort nearly impossible.
If you are a financial advisor with at least 3-5 years of client-facing experience and thinking about breaking away from a wirehouse firm, starting your own RIA could be the best way to grow faster. You’ll have more control, freedom, income, and be able to provide your clients with greater outcomes. As long as you are open to learning the blueprint for starting your own independent firm and finding the right mentors, there’s no reason you can’t make the shift and be a success.
To learn more about Trent and to connect, please visit Resilient Financial Planning.
As always we're here to help, please let us know if you have any questions. And to learn more about breaking away, checkout our previous articles in our series: