Break Away From The Pack

Should you take the leap and join a breakaway firm?

On Behalf of | Mar 25, 2024 | Practice Migration |

An established wirehouse career is a product of years of hard work, expertise and customer service. Because of this, it’s usually expected for an accomplished financial advisor to stay with their firm. However, some advisors move to Registered Investment Advisors (RIA) or breakaway firms for varied reasons.

Factors for leaving a wirehouse

For breakaways, it’s not a downgrade to leave their well-known companies for RIA firms. A study by Cerulli Associates mentioned the advantages of breaking away:

  • Greater independence at work: RIA firms offer structures that are more relaxed, allowing advisors to navigate their tasks with increased freedom. They also tend to promote flexibility for better productivity.
  • Wider marketing opportunities to gain more clients: Breakaways may try new things when promoting their services. To support advertising efforts, they can partner with local businesses and hold workshops. They can also explore digital marketing by posting engaging blogs and videos on various platforms.
  • Enhanced self-worth due to higher payouts: Advisors know their numbers well, and that includes the higher pay that they deserve. Aside from giving greater payouts, RIA firms encourage their advisors to be flexible when setting fee levels.

Meanwhile, other advisors break away to establish RIA firms. Being their own boss allows them to use their vast experience along with their entrepreneurial and leadership skills.

Concerns about breaking away

If you are thinking about breaking away, it’s normal to have doubts and fears. Most advisors worry about losing clients. While those who want to set up RIA firms feel pressured by compliance and regulatory issues, they are also content with technological responsibilities and operational requirements.

Taking a big leap

Deciding whether to break away from wirehouses entails careful thought and planning. Legal support may aid you in negotiating offers and reviewing contracts. It’s crucial to make a well-informed decision so that your career may flourish even further.