There is an abundance of choices available for advisors who decide they want to make the move to independence. When making the move to a RIA, advisors typically fall into two main categories. One, is to join an established firm. The other, as you might suspect, is to start up a new firm solo – or as part of a group.
Of course, there are a number of things to consider with either option, and it really depends on what you envision for your practice. Are you the type that prefers to do it all? Or are you comfortable with delegating tasks and responsibilities to others? Especially those tasks that do not have a direct impact on the growth of your business?
One important consideration is who will own your client relationships after you move. We recently had an advisor join Dynamic where we were one of two potential landing spots for the advisor. In fact, they had agreed in principle to join the other firm when they reviewed the contract more closely and realized that they would share ownership of any clients brought on by the advisor after joining the other firm. When we confirmed that they would own 100% of their current and future client relationships while affiliated with Dynamic, that was the deciding factor for that advisor.
The example above is one where the advisor was going to join an established firm regardless of which they chose. They simply chose the one that they felt best suited their goals for their practice and served their clients’ best interests.
Advisors can mitigate ownership concerns by starting their own firm, but must consider the amount of time they will spend building out the infrastructure necessary to support the practice. Among the multitude of items to consider; compliance, staffing, technology to name a few. And how does one stay on track growing the business while focusing on the other facets of the business?
In the past several weeks, we have cited the Fidelity Investments Advisor Movement Study to share some of the trends in this part of the industry over the last five years. What the study found was that more advisors joined an established firm versus joining a startup (or starting their own) than those who made the move 5 years ago. Those who joined an established firm tallied by the 2017 study numbered 80% versus 67% in 2012.
If you are an advisor; considering a move now, or in the near future, want to focus on your relationships with current clients and have time to grow your business, visit www.dynamicwealthadvisors.com or schedule a confidential conversation to discuss your situation in more detail.
About Dynamic Wealth Advisors
Dynamic is recognized as a premier provider of essential resources to professional wealth management practices. Its turnkey practice platform includes asset management, and enables wealth advisors to save money and focus on clients while positioning themselves for success and growth. With myVirtualPractice, a suite of wealth management practice solutions, Dynamic hands the professional wealth advisor the keys to a comprehensive custom-built virtual office and practice complete with staff, back/middle office, accounting/billing, compliance and even a Virtual Assistant. The wealth advisor need only add clients and they are up and running instantly. For many breakaways and independent wealth advisors, being part of a nationwide community of like-minded professionals is one of the most valuable components of their affiliation with Dynamic.