Today’s savvy financial Advisors are constantly seeking the edge that will not only define their careers but also shape a secure and fulfilling future for their practice and their families. 

For those at the zenith of their profession, considering a transition or exit strategy is a pivotal decision. Breaking away from the traditional wirehouse or large brokerage, venturing into the realm of independence, and establishing one’s own practice can be a game-changer in crafting a retirement plan that goes beyond the ordinary. 

Let’s explore some insights from TERRANA GROUP’S team of experts on why forging your own path might just be the best move for maximizing the value of your work and gaining a strategic advantage.

Unshackling from Corporate Constraints

Those who launched their careers in the hallowed halls of established brokerages often find themselves starting to feel uncomfortably bound by the outdated mindsets of these old-fashioned corporate structures. 

For many seasoned advisors, the usual wirehouse retirement pathways fall short in offering satisfying solutions. Restrictive policies limit practice valuations and continuity options, but embracing an independent RIA model provides the ability to shape the future on your terms.

The allure of independence lies in breaking free from these philosophical binds and creating an advisory practice that offers more flexibility and customization, sooner rather than later. While macroeconomic conditions are affecting markets on a global level, the US Bureau of Labor Statistics projects a healthy growth rate of over 15% for the wealth management space in the next few years.  

According to Think Advisor, many millennials and older members of Gen Z don’t want to spend a lot of prime time in a purely production-focused role. However, the average age of investment managers is in the mid-50s — and the US workforce is in the midst of a paradigm shift as a silver tsunami approaches and millions of Baby Boomers reach retirement age.

In-depth financial industry research by Cerulli Associates found that 37% of Advisors, collectively controlling over $10T in assets, are planning to retire within the next 10 years, but many do not currently have a succession plan in place. 

JD Power’s 2023 U.S. Financial Advisor Satisfaction StudySM revealed that one-third of Advisors feel that they don’t have enough time to spend with clients, and a shocking 20% are 5 years or less from throwing in the towel. 

With these rapidly evolving demographics, now is the perfect time to take control of your destiny and find the right entrepreneurial opportunity or breakaway model that aligns with your values and goals while allowing you to plan a highly individualized exit strategy. 

Embracing Client-Centric Growth

In a boutique RIA or turn-key breakaway model, you gain unparalleled control over your business decisions, including fee structures, investment strategies, and the ability to build larger and stronger client relationships. 

This autonomy also translates into the freedom to craft a customized succession and retirement plan that isn’t dictated by wirehouse protocols. Independent Advisors simply have a wider range of options for growing their business as they see fit and developing real enterprise equity that can be sold at more than full market value.

Unlike the large institutions where clients are often assigned, adopting an RIA or turn-key model allows you to encourage and nurture partnerships that contribute not only to your current success but also to the longevity of your practice.

This client-centric mindset not only deepens your connections but also creates a more stable and committed client base, which is crucial for executing a blueprint for the future that thrives on enduring relationships.

A Long-Term Vision

Retirement planning isn’t just about accumulating wealth; it’s about maximizing earning potential now and building a sustainable legacy that lasts for years to come.

At the same time, more Advisors are transitioning to a more independent or boutique business model, and today’s consumers yearn for a more meaningful human connection and a fresh holistic approach to investing. They want a knowledgeable counselor and advocate who can help them prepare for life events over an impersonal robo-advisor or mobile investing app.

New fintech is realized practically every day, and RIAs and entrepreneurs are able to utilize the latest tools and harness the power of AI to help with administrative tasks, customer relationship management, and much more.

For over 31 years, TERRANA GROUP has partnered with the industry’s leading lights to help talented Advisors find a truly enlivening career path. Led by President and CEO Michael Terrana, we’ve made over 3,000 successful placements with the best wealth management firms in the country.

Break away from bureaucratic confines and find an environment of innovation and success with expert guidance from TERRANA GROUP — contact us today!