No. 6 - Lead with financial planning: Most wirehouses tend to minimize the value of financial planning in favor of prioritizing financial products. If financial planning is important to you personally, though, you can build an advisory firm that puts it first.
No. 7 - Choose your fee structure: Do you want to bill clients by AUM, hourly, retainer, or by project? Within certain limitations set by the SEC and individual states, you get to decide on fees however you see fit.
No. 8 - Control your client experience: You’re the one who works with your clients every day and no one knows them better than you. As an RIA, you can tailor your service to their unique needs and create a client experience where they feel truly valued.
No. 9 - Pick your own technology. Who wants to be told what CRM or rebalancing system to use? As an RIA, you can pick the tech that you like best and build a tech stack that supports your vision and value.
No. 10 - Add services when they’re needed: When you’re independent, you have total control over how to shape your business. If you see that clients need help with taxes, securing a loan, or even funding an art collection, you get to decide the best way to add services to help with whatever they need.
The Most Important Question to Ask Yourself
How many of these ten reasons resonated with you? If you’re at or near saying that all ten feel important, you’re likely pretty high on what I call the Frustration Cycle.
Understanding yourself and what frustrates you about where you work is probably the most important consideration to make if going independent is right for you or not. Even if some of these reasons sound like something that would be nice to have, if you aren’t feeling frustrated in your current situation, independence may not be the right move right now.
Some advisors spend their entire careers perfectly happy without running their own independent RIA. Other advisors, though, identify strongly with the reasons on this Top 10 list and know that if they want to achieve professional happiness, they have no choice but to take the leap and go out on their own.
As you embark on a new year ahead, start by looking inward before you look outward. You want to make a decision to go independent with a firm understanding of your goals and aspirations, but also your limitations.
Some advisors are born entrepreneurs; others are not. For this industry to be strong, we need advisors of all types with all different kinds of strengths. Whether you decide that independence is right for you or not, you can always build an advisory career to be proud of by prioritizing the clients you serve each and every day.
Ryan Shanks is founder and CEO of FA Match, a digital recruitment platform that connects experienced advisors with financial services firms equipped to help them thrive. Ryan brings over 20 years of experience as a recruiter and “sports agent” to financial advisors.