How to Choose a Firm When You Go Independent

Temma Ehrenfeld | Financial Planning, March 2011

Summary: Leaving a brokerage firm or a large wirehouse to join a firm of independent planners is a delicate move. Your own career and financial security is at risk when you put your reputation on line with new colleagues. Choose a firm with a well thought out and documented investment philosophy. Choose a firm with the infrastructure that you need to support you: staff, back office efficiency and capacity to grow. A good firm will have a healthy culture with little or no staff and client turnover.

To assess your compatibility with other principals, you need to carefully vet the firm’s culture, investment philosophy, infrastructure, strategy for growth and compliance record”

Andrew J. Sohn, of Antaeus Wealth Advisors, in Boxboro, Massachusetts

Our Commentary

While FiNet is less corporate than a wirehouse, it is still more restrictive and controlling than other IBDs much less other hybrid RIAs. Additionally, the 72-77% is far away from the 85-92% payouts of other IBDs. If the value is there for the advisor than this is fine: evaluate this cost benefit.

< Previous Article

Hybrid's New Groove

Next Article >

Untethering from the Mothership: Yes You Can, But It Won't Be Easy

comments

Be the first to comment on this Article