Many financial and insurance professionals owe their allegiance to a single firm or company. Sometimes referred to as “captive” advisors, they often have sales quotas they are expected to meet, proprietary products they are expected to sell, and many times receive bonuses for reaching certain product sales levels.

If the investment professional in this kind of environment sells a product that is influenced by meeting a sales goal, suitability problems can occur. Because of the advisor’s relationship with the parent firm, this type of environment can sometimes be detrimental to building a “trusted advisor” relationship with clients.

An independent financial professional is not tied to any one product or firm. He or she is able to offer clients a broad spectrum of product choices from a wide variety of companies. From this varied menu of options, s/he is able to work closely with the client to provide investment solutions that best align with the client’s goals and objects.

One of the myths about becoming an independent financial professional is that the level of client service provided by the broker/dealer won’t be as high. While that may indeed be a concern with some of the smaller independent broker/dealers, at Securities America we focus on providing extraordinary service and support to advisors and their clients. As one of the nation’s largest independent B/Ds, we have the people and processes in place to ensure you and your clients receive reliable, consistent and friendly service each and every day.

Another misconception about becoming an independent advisor is that the costs associated with running your own business are too high. This will require you putting a pencil to paper and doing some number crunching, but chances are that when you total up the expenses you would incur against the higher percentage in payout, you’re likely to find that your net profits are indeed much better as an independent. In a wirehouse environment, it may not seem like it, but you are paying for all the business overhead expenses - that cost deduction is reflected in your payout.

And don’t forget the benefit of one day being able to SELL your independent business to another advisor! If and when that time is right for you, we’ll be there to help facilitate the transaction.

You may be wondering how difficult it will be to grow your business without a major “brand” backing you up. The fact is, most clients don’t care about a known-brand parent company – they’re looking for a knowledgeable financial advisor with whom they can build a long-term relationship based on trust. As an independent advisor you are able to further that relationship by putting your clients’ needs before your broker/dealer’s needs. And, Securities America will be there to help grow your business through our practice management programs and client acquisition services, and by providing top-tier service designed to retain your existing clients and help you generate new ones.

You already know that making a career change is a big step. We’re here to answer any questions you may have and help you map out the road ahead. Give us a call to discuss what independence might mean for you: 800.989.8441.

 Click below for more in-depth information on:
 ► Payouts and Pricing 
 ► 8 Steps to Finding Your Ideal Broker/Dealer - what you should consider when conducting your search 
 ► Going Independent? Cover Your Bases - outlines the process steps and considerations for becoming an independent advisor. Then click through from the article to access the quiz, below.
 ► Are You Ready for Independence? Take the Quiz! - see if your score indicates you’re ready to make the move!
 ► Wirehouse vs. Securities America - worksheet to help you better understand what your theoretical expenses and payout might be as an independent advisor 
 ► Choose Your Affiliation Model - outlines the variety of ways you can affiliate with a broker/dealer to best suit your desired business model
 ► Considerations for Joining a Branch - discusses the benefits of joining an already-established branch office, as well as a list of considerations.