There are a lot of issues to consider before making the move from a wirehouse or bank to an independent advisor. Although as an independent you get to make your own decisions, this autonomy comes at a price. Specifically, you are required to pay your own expenses. If you are unfamiliar with these expenses, and everything else included in the life of an independent advisor, it’s not unusual to be a little apprehensive. Therefore, my goal in writing this is not to talk you into or out of this decision, but to give you a clear picture of precisely what is involved.
In this article, we’ll cover the most important issues you’ll face, provide a process for your decision and, hopefully, arm you with the tools and information you’ll need to make the right choice. Obviously, independence is not for everyone, but for some, it can be a highly rewarding experience. As is the case with all decisions, there are two components. One is logical and the other emotional. First, do your analysis (logic) and then make the decision (emotional).