Becoming an independent financial advisor may be the way to go if increased income potential is important to you.
Three out of four financial advisors who moved to an independent business model report they’re now better off financially, according to the Fidelity Insights on Independence Study. In fact, 64 percent indicated they were better off within six months of the move.
The survey also indicated that the majority of financial advisors who make the switch to become independent say they’re satisfied in making the move. When considering their motivations for making the move, most advisors reported that they were “where they wanted to be” toward meeting their goals. Nine out of 10 reported that they were happy with their decision to pursue independence, with 45 percent indicating they knew immediately it was the right move.
The number one insight advisors said they wished they had known before transitioning was that they should have made the move sooner, followed, at number two, by a feeling that independence is better.
Understandably, a smooth transition and whether or not clients might move as well are two concerns in going independent. A recent AdvisorOne.com article cites a survey reporting that despite fears they might lose clients when going independent, 79 percent of advisors who switched to the independent model in the last two years say the majority of clients stuck by their side.
Advisors are understandably cautious about avoiding any business or client disruptions when making a move. For a smooth transition, choose an independent broker-dealer that makes your move seamless, without missing a beat for you or your clients. IFS Securities offers a single point of contact for all your transition needs and partners with you for success. We believe in independent thinking and know what it takes to help you run your own financial advisory business.