As we reflect on Independence Day, it brings to mind what independence means for a financial adviser today. Having come from an independent broker dealer with very traditional offerings, and now heading business development for a Registered Investment Advisor with a very different concept of customer service, the contrast is clear. Within that contrast, however, there are differences between advisers that are independent and those who find freedom within their independence.
The Transition to Independence
The ideology of independence is a beautiful concept. When an adviser makes the decision to transition their book of business and channel their inner entrepreneur, it is not only exciting, but they also find an unprecedented number of options. Options are great! That is part of the elegance of being independent.
The difficult part is navigating the sea of options; being sold the same bill of goods everywhere and hoping you select the best team possible to support the needs of your independent business and your clients once you hit land.
Unfortunately, we hear from advisers all too often that the “bill of goods” (read: support) they were expecting through the onboarding process and beyond, is many times drastically lacking (or nonexistent) — and not at all what they were expecting or promised.
What Does Independence Mean?
Having the right amount of support is extremely important in the world of independence. The sticker shock of not having the support available when needed leaves newly transitioned advisers feeling trapped.
The trap of independence is working at an independent firm where you don't have any of those demands from management, but you also find during/after onboarding you have little-to-no resources either. Advisers who show up the first day, alone, only to be thrown a packet of PDFs and told “Go get it, Tiger” is something that unfortunately happens all too often —and, in our opinion, the definition of being trapped in independence.
Many advisers desire independence without really knowing what independence means to them. Freedom from your sales manager and his “idea” of the best way for you to run your business is an important freedom. You'll never build any value in your business unless you control your business.
If you work as an employee at a traditional financial services firm, you will never own your business. Being told that you have the ability to do anything you want with your business doesn’t matter if when it comes time to sell that business, you're told who to sell it to and how.
The Freedom of Independence
The freedom of independence is the ability to shake off the manager who tells you how to run your business, and the power to grow your business and protect your business how you best see fit. But this does not mean that you must be a one-person show and fulfill all the needs of your business solo.
“In life, change is inevitable. In business, change is vital.” – Warren G. Bennis
There are two kinds of people who need independence:
1: People who work at a traditional employed firm. You are all about the firm and what the firm wants. You are building a great business for that firm, and the firm is going to let you have whatever slice of pie you want, while having all the restrictions being placed on you and the clients you serve for said firm.
2: People who work for an independent firm where you are independent, but you're basically free to drown in work because you have no real resources to guide you — to be the best you can be for business, your clients and yourself. After all, isn’t the point of being independent to have the freedoms to make the life you want for clients and yourself?
The IAS Difference
At IAS we ask, what do you want in life? What do you want for your business? What do you want for your clients? Most of all, what do you want for yourself and your family?
Do you want to be independent for the sake of independence or do you want to be independent with the freedoms to not only make your own decisions, but to create the business and the work life balance you and your family deserve?
Being an Independent Adviser and having control over your independence can be two completely different definitions. Those definitions are clearly defined by the level of support you are receiving from your current firm for you, your business, and your clients.
What level of support are you and your business getting? Is it enough collaboration to help you grow the business you want long term with the level of freedom you deserve?
The IAS Adviser
At IA-Solutions we practice what we believe. We believe in the adviser having freedom within our community, with support both for the advisers and their clients. We believe in advisers having the freedom to build the business they want to best support their clients. We believe in culture, including open discussion within our community for everyone, to be the best they can be at whatever stage of business/life they are currently in.
At IAS, we:
IA Solutions is an impact-oriented organization designed to help financial professionals re-define their relationship with both client and firm. We believe that the key to better advice is providing a more supportive environment for the financial professionals we serve.
Our goal is to build a community of support and advice, dedicated to curating well-being through financial security. As a fee only registered investment advisor and fiduciary, the most meaningful measure of our success is how well we meet the needs of our clients. That unwavering belief is the foundation of IAS.
Workplace culture is paramount to the IAS mission. We want our advisers to feel the same well-being that we ask them to cultivate for clients. We strive to provide a workplace where questions are encouraged, and education isn’t just something you do to keep a license. Ultimately, we want to make sure advisers feel the support of a community working towards a common goal.
Independence is necessary for you to have the autonomy to maximize the value you bring to your clients, and ultimately, the value that you bring to yourself. But in the pursuit of independence, you also need to find freedom.
Freedom from endless paperwork, freedom from being the only person to manage your book, freedom from hours of stock and investment research. If you want to be happy, you need to do more than run away. You need to run to something.
Independence you need with the freedom you want!
As you contemplate independence, consider part of this FDR speech on freedom from 1941:
Ask yourself, is the independence you have the independence you need?