5 Reasons to go Independent
 By Cammy Smith & Ella Radice
March 3, 2021

Many advisers contemplate going independent at some point in their careers, especially in today’s economic climate. In fact, the TD Ameritrade Institutional Break Away to Independence Spring 2020 Survey found that 40% of brokers reported being "more likely" to break away and go independent now than six months ago*. When mulling over the pros and cons of full-independence, consider some of these key advantages that benefit both advisers and clients alike.

Improved Business Model and Payouts

As opposed to being the employee of a wirehouse or bank, starting your own RIA or affiliating, hiring an RIA-service provider, or affiliating with an independent broker dealer allows you to become a business owner with a say when it comes to business model and payouts. When you go independent, you are no longer working under the jurisdiction and production quotas of a firm; rather, you develop your own business model, whether it be starting your own independent business or joining another independent practice. In turn, the payouts work much more in your favor. Under a wirehouse or bank, your payout tends to be more limited and in some cases, leaves you with a payout of only 40%. Under an independent practice, your payout can range upwards of 92%-100% depending on your business model and production levels. With much more flexibility to decide your own success, independence is a great option to improve business value.**

Increase Take Home Pay 

Independent advisors have full ownership of their book asset value.***  As a result, they have the ability and freedom to charge a price for their services that they believe is reflective of the value of their own services. Moreover, independent advisors have more freedom to structure their fees and determine the most optimal payout structure for their own business, thereby increasing their payout.

Customizable Solutions

One of the benefits associated with independence is the greater flexibility to customize solutions to help clients reach their investment goals. In breaking away from their wirehouses, RIAs and Independent Advisors have the autonomy to deepen their services with greater depth and scope than ever before, especially with the advanced financial planning and portfolio management software that exists today. As smaller firms, RIAs are at an advantage as they can use technology to scale more complex planning services while continuing to remain personable to their clients. With these integrated technologies, newly-independent advisers are equipped with the knowledge to adopt solutions that support clients through their various stages of life and help them attain their long-term goals with real-time data, thereby delivering more meaningful services. Technological automation and customization allows independent advisers to focus on client relationships while maintaining the scope and sophistication of a large firm, and delivers a more holistic planning experience. ****

Client Loyalty & Experience

For independent advisers, their first priority is the client. Unlike the bureaucracy of large wirehouses, there is a more direct line to clients and therefore more transparency and accountability. Independent advisers have more of an incentive to truly get to know their clients and act in their best interest, without the caveats and limitations associated with large firms. Oftentimes, there is a pressure within wirehouses to use the firm’s proprietary products or cross-sell services from other internal divisions. As your own boss, you no longer need to adhere to those production quotas. You will have access to a range of solutions and better meet your client’s needs accordingly. ***

Owning a Saleable Asset

Independent advisors are the only individuals responsible for their clients and their data, allowing them to meet their client’s needs without the need to adhere to the practices and procedures of a larger firm. Because independent advisors can better exercise control over these underlying assets, it allows them to monetize their assets in a way that allows them to not only generate higher income today, but also strengthen their business value for tomorrow. 


These benefits, in addition to the flexibility of retirement, transition, and scalability, demonstrate how business value, client relationships, and relevance thrive under an independent model. Worried about clients following you? You would be surprised that many, if not all, will because they are loyal to you, not your wirehouse or broker-dealer. 

If you decide that independence is the right path for you, Revive Consulting+ is here to ease your transition. With our team in your corner, rest assured that you and your clients will be guided to best in class execution with the best holistic expertise, technology, and guidance.


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