According to J.D. Power’s 2022 U.S. Financial Advisor Satisfaction Study, about 15% of wirehouse advisors and 7% of independent advisors are considering making a career move at some point in the next two years. And when it comes to your career, knowing when to make a big move can be almost as important as knowing what that big move should be. But, like trying to time the financial or real estate markets, trying to guess what’s going to happen in the outside world often results in paralysis and futility. The most important factors that should be considered as you think about when to make a move, therefore, are those that are personal to you. Read on for a guide for financial advisors on when — and how — to make your move. 

1. Understand Why You Want To Move

As Terrana Group’s founder Michael Terrana has said, “Time is your most valuable asset, therefore the best time to plan your move is immediately when you’re thinking about moving.” There is no best time to move and there will always be an excuse to wait. Making a career change is essentially a personal decision, so if you’re feeling constrained or limited in your current position, and or feel that your overall business can be better elsewhere while at the same time positioning yourself to excite the passion for your business, then it’s time to start preparing for the transition. 

Once you’ve made the decision to explore other options, it’s time to think about why you want to move. Among the questions to ask yourself:

  • Do you want more freedom from the “lowest-common denominator” management style of the wirehouse? 
  • Are you seeking more flexibility in how you manage client investments? 
  • Do you want to be a true entrepreneur, in charge of hiring staff, finding and managing office space, and running every aspect of your business, or do you prefer a more supported model?
  • Are you looking for an opportunity that will allow you to scale and grow your advisory practice? 
  • Are you interested in finding a firm that will be a better cultural fit? 
  • Are you moving to increase your buyout multiplier at retirement? 

Knowing why you want to move is critical. With the unprecedented variety of options available to financial advisors, advisors are able to essentially customize their wealth management practices to suit your risk tolerance, entrepreneurial inclinations, preferences for technology and compliance support, and the best way to serve clients. Understanding what you like and don’t like about where you are can help you to develop a sense of what you do want.

2. Do Your Research

Once you’ve answered the question of what you want from your advisory career, it’s time to start learning what steps you’ll need to take to make it happen. 

First, research your current firm’s policies and procedures regarding advisors who leave. Do you have a non-solicitation or non-competition agreement with your current firm? Does your firm participate in the Broker Protocol? It’s critical to understand how these agreements can limit your ability to interact with your current clients both before and after you leave. If you are subject to a contractual agreement that limits your right to compete, or if your firm is not a participant in the Broker Protocol, it’s important that you get legal advice before you make your transition. A great financial advisor recruiter can help to point you in the right direction when it comes to finding an attorney who specializes in situations like yours.

You’ll also want to understand your options for your next placement. Advisors and brokers leaving the wirehouse have never had more choices for how to structure their business. From W-2 models that allow advisors to own their practice but still work as employees but with independent-like payouts and transition compensation; to turnkey models that provide real estate, furnishings, hardware, trading and reporting software, complete technology stack choices, compliance reporting, custody and clearing services, on-site transition support and transition compensation while giving the advisor freedom to operate independently; to providing middle and back office services for corporate or advisor owned RIAs, there is a fit for every practice, client service need, and advisor temperament. 

This is the step where expert advice can be critical. Terrana Group has three decades of experience in the broker-dealer world, specializing in the independent broker-dealer and regional space. This expertise delivers answers to the questions that you are not yet aware of to ask and further help you understand your options, evaluate your business, and create a transition plan that is unique to you. 

3. Make A Plan

Once you’ve decided on a destination for your transition, it’s time to make a plan. Are you financially ready for the move you’ve decided to make? Have you put the time into developing strong personal and professional relationships with your clients that will help them make the decision to move with you? Developing a 5-year plan can help you determine where to focus your efforts after you’ve made a decision to move. 

This is also a great time to leverage your resources. Getting advice from trusted colleagues can be invaluable in assessing your options. And once you’ve got the wheels in motion, stay in regular contact with your transition team and recruiter as you prepare to discuss the transition with your clients. 

Want to Keep the Conversation Going?

Have you started to think about making a career move? This is the time to reach out for expert guidance that lasts all the way through your transition. At Terrana Group, we 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 30 years, we have helped facilitate many 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 large 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.