Are you considering the possibility of leaving your big financial planning firm to go independent? Are you wondering if the risks are worth the rewards? Do you worry that a move toward independence will leave you back at square one in your career? If any of these questions resonate with you, you’re in the right place. Going independent as a financial advisor is not a decision that should be made lightly. It’s a major change, but one that I believe is well worth it. Need more convincing? I’ve got five great reasons why you should make the move.
1. More Freedom
Are you tired of getting dressed in your stuffy suit and coming into an office every day? When was the last time you took a vacation? Working for a large firm often means long hours, mounting sales goals, and sacrificed family time. When you go independent, you can set your own schedule and decide where you want to work from. Advising a client via Skype from a cabin in the Rockies? Um, yes please!
2. More Reocurring Revenue
Not making as much money usually ranks near number one when it comes to fears of going independent. You’ve probably stayed at your big firm for so long because you’re bringing home a nice commissionable salary and your family is taken care of. Why sacrifice that, right? I don’t blame you one iota for feeling this way. However, as a fee-only advisor your salary is reoccurring. Your yearly revenue never starts over and what you made last year will continue to grow upon itself as you add business to your book. This business model is much more elegant than that of a commissionable worker because it allows you more freedom within your lifestyle the longer you stay in the business.
Have you ever advised a client to invest in something you didn’t truly believe in or understand because it helped you meet your sales goals? You don’t have to be ashamed, I can’t imagine there is one planner out there who can honestly answer no to this question. This exact scenario is what caused me to change my career. I advised a client to purchase the wrong product and I paid immensely for it. When you go independent, you can build the business your way. That means giving clients advice based on what’s best for them, not on what will best serve the firm.
4. No More Hamster Wheel
Sales goals that seem to double or triple each year can make any financial advisor feel like they’re on a hamster wheel with no way off. Just when you hit your numbers and think you can take a little break, the next milestone is laid at your feet. Independent advisors who decide on a fee-only structure no longer have to feel trapped. When the sales goals go away, so does the cage.
5. A Career You Will Be Proud of
Right now you may be proud of the money you make and the nice home, fancy car, and private school for the kids you’re able to pay for. And there’s nothing wrong with that. But when you dig down deep, are you really proud of what you do every day? Are you making your clients’ lives better? Or are you simply doing what it takes to keep hitting those goals? When you go independent, you can have it all: the money you need to take care of what matters most to you as well as a career with meaning.
As someone who has been through the process, I’m here to tell you the benefits of going independent far outweigh the risks. If you love this field of work and see it as your way of helping people, you should consider leaving your big firm and starting a business that fills your soul as well as your bank account. Need help? We’re here for you. Subscribe below or contact us for a free consultation.
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Patrick Tucker, owner of True Measure Wealth Management and founder of True Measure Financial Advisors, has over 20 years experience in the industry and has spent the last 15 years learning the ins and outs of the fee-only advisory business. He's spent over $500,000 finding mentors, studying consulting businesses, taking courses, studying the soft sciences, running trial and error experiments, and learning how to be an entrepreneurial financial advisor. He's simplified this into an easy to use and replicate blueprint for anyone who is entrepreneurial-minded and is tired of the sales culture. Patrick has been able to acquire over $139 million under management with little to no money spent on marketing.