A trend towards independence, once solely characterized by investors, has swept into the world of financial advisors. Historically dominated by national brokerage firms and wirehouses, advisors are gradually discovering freedom from brokerage firms in an independent financial business structure. Jonathan Beatty of Schwab Advisor Services stated: “Independent advisors are the growth story of the advice industry. We will continue to see momentum accelerate as more advisors choose to move to the independent model, confident in the knowledge that it is a better way to serve clients while also offering the opportunity to build and grow something of their own.” In the content below, we share three benefits of going independent as an advisor today.
Advisors with an enterprising mindset are often drawn toward the independent business structure, excited by potential challenges and future hurdles. Investor’s Business Daily commented: “To many entrepreneurs, starting their own firm is a lifestyle choice as much as a business decision.” Business owners often appreciate the autonomy and ability to pursue unique, creative branding opportunities allowed by the independent business model. Even advisors who choose to pursue a relationship with an independent advisory firm often enjoy the freedom to make marketing decisions while receiving helpful marketing assistance.
Unhindered Business Growth
The RIA market is projected to grow exponentially in the coming years as more advisors break free from brokerages and wirehouses and, often, join an independent advisory firm. Merrill Lynch and Morgan Stanley have lost members as advisors choose an independent platform to take control of their business. RIAs are attracted to the opportunity to take charge of their business, be their own boss, and choose what direction to lead their clients – without completely being alone. Good independent advisor firms offer both business freedom and daily administrative support.
Greater Money-Making Opportunity
According to the Independent Advisor Sophomore Study, released by Schwab Advisor Services, over 90% of financial advisors who left the wirehouse to pursue independent advising firm have no misgivings and would repeat the decision over again, should he or she have the chance. Independent advisors found that an independent firm allows for business ownership that can reap the financial rewards of every sale. Your advising business should be truly profitable, and advisors found that independence bolsters bottom-line growth. Ultimately, RIA’s determine the amount of revenue kept, control fees and extraneous expenses, and choose which products and services are required.
Freedom Wealth Alliance
Freedom Wealth Alliance is a first step to helping advisors become independent financial advisors. We are dedicated to our clients and strive to make your life easier, more enjoyable, and more profitable. At Freedom Wealth, we pair you with a dedicated support and marketing team to help automate and delegate your client service activities. With our services, you are free to service your clients effectively and can have complete confidence in your support team. Freedom Wealth promises that you’re not dreaming. All this and more are available today.
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