How big does an Advisor’s business have to be to survive as an Independent? Even 10 years ago, the answers to this question were all over the map, and often misunderstood by Advisors. Technology enhancements, competition, and COVID, have drastically reshaped the industry in a short period of time, making it easier and more confusing than ever to take your practice independent.
The average Independent Advisor will net around twice as much income as an average Employee Advisor. But sometimes Advisors forget the reciprocal of this truth: An Independent Advisor needs half as much AUM to make the same amount of money as an Employee Advisor.
There are a lot of sound reasons for an Advisor to stay in an employee relationship, and Advisor Advocates fully supports Firms who offer stability to Advisors who thrive in a team environment. But far too many Advisors stay in difficult situations because they overestimate the challenge of being independent, both economically and practically. In this episode, former Independent Advisor Garrett Layell unpacks the decision to start a small independent practice and helps Advisors outline the decision tree to help them determine if their practice is large enough to survive as an Independent.
If you are an Advisor exploring your options or a Firm hoping to better position yourself to grow your team, feel free to give Garrett a call at 919-561-2436 or send an email to Garrett@theadvisoradvocates.com if you’d like to chat about any questions you may have.
