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ARTICLE
The Misconceptions of Independence- Volume 3

“Independence is only good for the really big or really small advisor.”

 

July 2016

Erik Mora

“Independence is only good for the really big or really small advisor.”

 

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When I heard this statement I was kind of surprised. I wasn’t completely sure why there was this belief. After interviewing several wirehouse friends I finally asked the third advisor who made this comment, “Why do you believe that to be true?” His answer was simple. “Independence works for the really small advisor because they have to make it work. They are being pushed out of the big firms. Independence works for the really big advisor because they can make it work. They have the resources and size to make it work to their advantage.”

After hearing that response this made all the sense in the world. Their mental picture of independence was the small advisor in the office that was in the “penalty box” who was forced out to work for some unknown independent firm working out of an executive office, home office, or garage. Or it was the really big corner office advisor that picked up their team and went independent because they could afford to start their own firm and continue to build on the large business they had already created. While there is definitely some truth to those thoughts, the reality is independence has evolved to accommodate advisors of any size. There has been an explosion of options for advisors of all sizes. You have options that range from using an independent broker-dealer (ex. LPL) to joining an existing RIA to starting your own firm. All these options will present pros and cons, but most of these roads will likely lead you to more income, less bureaucracy, and more control of your business than a traditional large firm. 

 

About Freedom Partners

Freedom Partners' mission is to be the premier service provider for financial advisory firms in Southern California. Freedom Partners provides hands-on support and training that focuses on enhancing and refining the people, processes, and poetry of the partner advisory firms they serve. Their goal is to increase revenue, reduce costs, and help increase enterprise value. Freedom Partner’s A-Z back-office support is delivered by their team of professionals that have had long-standing careers in financial services.  Their experience has been in roles working closely with advisors, but also as top-tier sales representatives in client-facing sales roles. They have successfully helped build and run a RIA and have experienced the full life cycle of a firm.


Freedom Partners believes these experiences are their competitive advantage in the marketplace. Freedom Partners attributes their success to offering a transparent solution that incorporates technology but also delivers the in-office support they believe advisors want and need. FreedomPartners’ Co-Founders have successfully transitioned over $1 billion of assets from Wirehouse firms since 2014. Freedom Partners currently has over $900 million of assets under contract. To learn more about how Freedom Partners may be able to help you, please visit us at www.FreedomForAdvisors.com or contact us at 949.751.7407.