FROM THE BLOG

In my 20 years in this business, one of the predominant struggles I’ve seen advisors wrestle with is when their gut is telling them they need to make a move, but they just aren’t sure where to start.  Last week’s blog, “Thinking of Going Independent?” dealt with this very topic.  If you didn’t get a chance to download the pocket folder, “Why trot when you can gallop?” you can still do so HERE.  It lays out 8 very important questions to consider when you are going through your search.

In the following weeks, I will spend some time diving into some often-ignored but key areas to consider if you are a financial advisor thinking about making a move.

The first and perhaps most over-looked and critical question to consider:

How important are core values to the success of your firm?

Take a look at yourself- is your primary driver values-based or price-based?  It goes without saying that a balance of each is essential in running a profitable business, but the one that actually drives you will show up predominately in how you interact with others.  If you lean towards values-based and the broker-dealer you are considering is price-based, you can bet dollars to donuts that there will be an eventual clash and divorce.  Typically in this scenario, you will be expecting more than they are willing to give.  On the flip side, if you land more on the price-based side, you will probably not see the value (pun intended) in the broker-dealer that works hard to build relationships with their advisors and take predictably more of a consultative approach to working with you.  Again, a happy medium is where most strive to be, but everyone has a slant one way or another that feels natural to them.

There is no wrong or right way to be- but be YOU.  Because if you aren’t YOU in the search process, how could you possibly expect to be married long-term?

I think it can be super difficult to figure out which way the broker-dealers you are talking to lean-  some things to watch out for:

• Did they insist on meeting you in person before extending an offer?
• Did you meet their home office staff during the process?
• Did they ask questions to be clear on what your financial needs are before presenting an offer?
• Is their website basic or education-based?
• Are they focused primarily on ticket charges and upfront money as their value?
• Is there a contract and if so, how long is it?  (Tying you down long-term does not speak to a very entrepreneurial relationship if you truly want to be independent.  If you are not looking to go independent, this is less of an issue.)
• Do they immediately try to get you closed regardless of your needs or business mix?
• Do they approach the relationship with the ideal of “let’s see if we are a fit for each other”?
• Is the broker-dealer selective with who they hire?
• Have they invested time and money into a service program to benefit advisors?
• Have they invested time and money into advisor education tools?
• Will you have direct access to the executives of the firm?

It may take a bit of soul searching on your part throughout the process.  All other things being equal, what feels right long-term?  Each business is unique and broker-dealers are not one-size-fits-all.  I believe there is that right fit for everyone.

My parting advice:  Trust your gut. Trust your gut. Trust your gut.  Oh and, trust your gut.

When has it ever steered you wrong?

Take care,

Posted by Tarah Carlow Senior Vice President, Marketing & Advisor Loyalty