Should i go independent

Instead, you can identify appropriate options for your clients from a plentiful universe of investment solutions, enabling a new decision-making transparency. Clients should appreciate this change, which will help you deepen relationships and improve retention. Establishing a new client base will be an ongoing marketing challenge. Purchasing computers and supplies will be necessary, as will consultations with IT and security experts. Start-up costs can be considerable.

And there will be ongoing payments for rent, utilities, research and planning software, and staff salaries and benefits.

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Thinking about going independent? Brush up on the basics of telling your breakaway brand story. Millennial women are approaching their peak earning years. Financial Advisor Practice Management. Table of Contents Expand. Growth in Independent Firms. Start Careers at Brokerages? The Bottom Line. Key Takeaways Financial advisors have more and more options to stake it out on their own as an independent as a registered investment advisor RIA instead of being an employee of a firm.

Being an RIA gives you independence and flexibility, and you don't have to share your commissions or pay for desk space at a brokerage. Independent RIAs, however, tend to report being happier and can make higher incomes. Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation.

This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. Related Articles. Partner Links. Related Terms How Brokerage Companies Work A brokerage company's main responsibility is to be an intermediary that puts buyers and sellers together in order to facilitate a transaction.

What Is a Robo-Advisor? Robo-advisors are digital platforms that provide automated, algorithm-driven financial planning services with little to no human supervision. Registered Representative RR A registered representative RR is a financial professional who works with clients who are trading investments such as stocks and bonds. What You Need to Know About Dealers A dealer is a person or firm who buys and sells securities for their own account, whether through a broker or otherwise. B2B Robo-Advisor A B2B robo-advisor is a digital automated portfolio management platform that is used by financial advisors.

Investopedia is part of the Dotdash publishing family. It will likely take several months before your organization is up and running with its first clients. Nevertheless, there are some simple steps you can take toward starting your firm. Here are some tips that can help to make your transition to independence as smooth as possible:.

Your business plan should briefly outline elements such as asset mapping across platforms, systems integrations, necessary infrastructure, etc. Having this written document in place will help you stay on track as you continue building upon your initial ideas, minimizing distractions along the way.

A Hybrid RIA model often works best for advisors transitioning to independence. Under this model, the advisor is representative of both an RIA and a Broker-Dealer, allowing them to provide both commission-based services through the Broker-Dealer and fee-based services through the RIA. Need assistance creating a business plan? As a financial advisor, the importance of having a financial savings account is something you likely continue to stress upon your clients.

This idea should be applied when starting your independent firm as well. Many firms will place non-compete clauses in employee contract agreements that may prevent advisors from taking clients with them as they transition into an independent role. While these customers are already familiar with you and your services, you are also highly aware of their financial situation and goals.

Maintaining close client-advisor relationships at your existing firm can be a good source for a loyal client base when you choose to go independent. One of the great things about a Hybrid RIA business model, as mentioned earlier, is that you have the flexibility to offer both commission- and fee-based products.

This is good news when seeking to retain your clients from a previous firm, as you can continue to serve clients in your book of business who have either of these products in their mix. Many Americans are miseducated about the financial services industry and how they can transform their financial picture. Rather than having them hear the benefits of a financial advisor from a television ad, offer them your services yourself!

You will be surprised by the number of people in your network who need someone to help them get a handle on their finances. Even with its benefits, becoming an independent advisor has its challenges, especially for those inexperienced with establishing or managing a business.

Good Life Companies provides financial advisors with the help they need to start their independent business. We offer a full range of services to help you establish, manage, and grow your firm.