Financial advisors considering a move away from the wirehouse can easily find themselves overwhelmed — both by the wealth of options available to advisors, and by the difficulty of timing the transition. Knowing when you’re ready to move on from the rigid structure of the wirehouse can be as important as knowing what you want to do next.
Are you an advisor wondering if the time has come to leap from the relative safety of the wirehouse and strike out toward independence? Consider our list of five signs it may be time to leave the wirehouse.
1. You Have Outgrown The “Lowest Common Denominator” Management Style Of The Wirehouse
The scale of most wirehouse advisory practices means that most wirehouse advisors find themselves subject to a top-down, uniform style of management. While this “lowest common denominator” management structure can be effective in making sure new advisors aren’t able to make expensive mistakes, many experienced financial advisors find that it imposes significant limitations on the products and services they can offer to advisory clients. The wirehouse focus on large clients and systematized processes can be limiting for advisors who want the freedom to focus on each client’s individualized goals and needs.
For advisors who feel the need for a more sophisticated advisory practice, independence offers a wealth of options that can accommodate a practice of virtually any size. Advisors who feel comfortable making complex investment decisions and who have found themselves constrained by the one-size-fits-all model of the wirehouse may be ready for a practice that better suits their clients’ needs. If you’re feeling limited by the wirehouse model, it may be time to consider a move toward independence.
2. Your Client Relationships Are On A Solid Footing
The journey to independence begins and ends with strong client relationships. Advisors who choose an independent route can expect up to 85% of their clients to follow them in sooner than six months of a move. However, client loyalty can never be taken for granted. Advisors who keep their clients engaged by focusing on each client’s expectations and tailoring an individualized contact strategy can expect greater conversion rates as they move to an independent or supported independence practice model.
The wirehouse model can seem impersonal to many investors — advisors who take the time to cultivate personal relationships can stand out when the time comes to make a move. Investors are much less likely to consider the name on the outside of the building when your name is a familiar one in their own household. As you consider whether it’s time to transition, taking the time to critically analyze the steps you can take to strengthen your client relationships can ensure that you’re ready to hit the ground running in your new practice.
3. You’re Ready For A More Supportive, Individualized Work Culture
When it comes to work in 2022, culture is everything. The values, ethics, and client services practices in which a firm engages can make a big difference to an advisor’s personal and professional satisfaction. Many advisors who choose an independent path do so because they are ready for a firm culture that more closely mirrors their own personal and professional goals.
As an independent advisor, you’ll have the option to seek out or create a culture that works for you. From the way you communicate with clients to the products and services you offer, independence can offer a truly customized path that reflects your values and investment philosophy, maximizing returns for both you and your clients.
4. You’ve Created A Business Plan That Works For You
Advisors considering a transition have never had more options — from supported independence, to regional firms, to complete independence, there is an independent path that suits every advisor’s business plan and goals. Preparing a business plan is a critical step in the journey toward independence.
Understanding your core competencies, the services and products you want to offer, and your pricing model are all critical for advisors considering independence. Creating a business plan that can evolve and grow with your practice is an essential first step on the path toward an independent advisory practice.
Knowing how you want to structure, manage, and grow your advisory practice is a significant sign that you’re ready to move on from the wirehouse model.
5. You’ve Got The Right Transition Resources In Place
If you’re thinking about leaving the structure of the wirehouse, having a great team behind you is essential. Our TG recruiters can offer the options, advice, and transition resources you’ll need as you consider your next steps after the wirehouse. Our recruiting team at Terrana Group focuses on making sure all those involved understand what the Advisor is looking for and offering best-in-the-industry advice regarding which firm or firms are going to meet those needs. Terrana Group helps advisors evaluate each firm’s culture, technology, transition support, and economics, helping advisors manage the entire transition process from start to finish.
Want to Keep the Conversation Going?
All of us at Terrana Group welcome the opportunity to consult with you to determine the right platform for you going forward — one that satisfies your long term objectives and is also best for your clients!
Over the course of over 30 years, we have helped facilitate thousands of professional placements for Advisors, with client assets transferring exceeding $67 billion dollars. We have completed placements in most every major city throughout the United States, while building deep relationships with the advisory world’s most sophisticated and notable firms — including Wall Street brokerages as well as most Regionals, Boutiques, Banks, Independent Broker Dealers, and RIAs. We have a broad knowledge of the deals that are currently being offered and will ensure that you are being presented with the offer which will be best for you.
Confidentiality, professionalism, and respect are protocol to our practices and beliefs; we handle each and every step of the placement process with complete communication, keeping you informed while making the process smoother from beginning to end.
We are proud to always be considered as a great asset by our clients because of our proven expertise, many years of knowledge, and acute attention to detail. Financial Advisor Recruiting Services are not all created equal; we guarantee that the TG experience for clients and candidates is always world class.
We are based in Chicago, with a nationwide reach. Let us know you are interested by contacting us today. To get the conversation started, email info@terranagroup.com or give us a call at 312.655.8380 today.
