Taking the Leap: Going Independent as a Financial Advisor

Jun 15, 2023 | Grow your Business, Practice Management

Financial Advisors going Independent

Are you a financial advisor who dreams of breaking free from the constraints of a traditional firm and forging your own path? Maybe you’ve been considering the idea of going independent, but you’re plagued with doubts and uncertainty. This blog post is for you.

The Frustrations of the Traditional Firm

Let’s face it, working for a traditional firm can often feel suffocating. The endless bureaucracy, rigid firm rules, and limited product offerings can stifle your originality and hinder your ability to provide tailored advice to your clients. You might find yourself constrained by corporate mandates and bound to sales quotas, prioritizing the firm’s interests over your clients’ needs.

Embracing Independence: The Pros

Autonomy and Flexibility:

Going independent means no longer answering to a hierarchy. You are truly your own boss, enabling you to make decisions that align with your clients’ best interests. You can also have the power to create a flexible schedule, allowing for a better work-life balance.

Customized Client Experience:

Independent advisors have the freedom to build their own brand and offer more personalized services that resonate with their target clientele. You can develop a unique boutique experience that sets you apart from other financial advisors.

Broader Product Selection:

Unlike traditional firms that often limit your offerings to in-house products, going independent opens a world of possibilities. You can choose from a wide array of investment options, partnering with the best custodians in the industry to cater to your clients’ diverse needs.

Higher Earnings Potential:

As an independent financial advisor, you’ll have the opportunity to earn a higher payout. Without a traditional firm taking a large cut, you can potentially earn more for the value you provide.

Navigating the Challenges:

Re-Building & Transferring Your Client Base:

Transitioning to independence can mean starting from scratch in terms of acquiring and transferring over clients. This process doesn’t have to be hard. Consider getting help from a transition team to assist with your practice restructure.

Operational Responsibilities:

Unlike at a traditional firm, where administrative tasks are often taken care of by support staff, as an independent advisor, you are responsible for managing all operational aspects of your practice. This can include everything from technology and software selection to client onboarding, reporting, and bookkeeping. Be prepared to wear multiple hats and invest in systems that streamline your workflow.

Going Beyond Your Comfort Zone:

Going independent requires stepping out of your comfort zone, taking on new risks, and dealing with the uncertainties that come with the territory. Self-doubt may creep in but remember that growth and success often lie beyond your comfort zone.

Planning for Success

Create a Solid Business Plan:

Before venturing into independence, it’s a good idea to have a well-thought-out business plan. Define your target market, outline your unique value proposition, and set achievable goals. A business plan will serve as your roadmap, helping you stay focused and track your progress.

Seek Mentorship and Guidance:

Reach out to established independent financial advisors who have successfully made the transition. Learn from their experiences and seek their guidance to avoid common pitfalls. Join industry associations and attend conferences or seminars to expand your network and learn from industry experts.

Choose the Right Custodians:

Selecting custodians is a critical decision when going independent. Your custodians will hold your clients’ assets and provide essential support services. Research different custodians, comparing factors such as technology platforms, investment options, fees, and support offered. Look for a custodian that aligns with your business model and provides excellent client service.

Embrace Technology:

Technology is your ally when going independent. Invest in robust financial planning software, client relationship management (CRM) systems, and digital marketing tools to streamline your operations and enhance your client experience. Embrace virtual meeting platforms to connect with clients remotely and expand your practice.

Focus on Continuous Learning:

To thrive as an independent advisor, commit to lifelong learning. Stay updated on industry trends, regulatory changes, and investment strategies. Pursue relevant certifications and designations to enhance your expertise and credibility. Attend workshops, webinars, or seminars to expand your knowledge and refine your skills.


Transitioning to independence offers the freedom to create a practice that aligns with your values and deliver personalized solutions to your clients. While the journey may be challenging, the rewards can be immense—autonomy, higher earning potential, and the ability to build more meaningful relationships with your clients.

If you’re considering taking the leap, carefully assess the pros and cons, prepare a solid business plan, and establish a support network. Your clients, your future, and your own happiness as a financial advisor may depend on it.

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