But what about the dangers of such a dramatic change? And how does one avoid professional disaster and find the right partner?
“Ideal partners,” the study said, “provide scale, flexibility, autonomy and resources.” Although Oden said an overwhelming majority of advisors successfully make the transition, he said, a few are failing.
Problems come, added John Kovacs of Lenox Wealth Advisors, when financial professionals “have not properly prepared for a move.”
Oden added that Schwab has turned down some advisors who wanted to become independents but weren’t ready for the economic and professional challenges of doing it. Still, he emphasized that most professionals only regret that they had not done it sooner.
Schwab officials, along with some of their allies in the independent movement, contended the wirehouses are sometimes trying to spook reps considering independence.
“They’re some hot air coming out of the wirehouses,” said Ryan Marcus, a managing director with Aurora Private Wealth.
The Schwab survey talked to 152 financial advisors who are considering becoming independents.