- On June 26, 2017
- Give yourself a break
Comparing the myriad of breakaway models and options can take a lot of time and frustrating to navigate all alone. Give yourself a break and let Advisorbox help make the process easier, more efficient, and even more enjoyable. While this may be your first time to the rodeo, we do this everyday. There is no cost to you for our services and think you will appreciate our consultative, supportive, advisor advocacy approach.
- Brake before you break
If you’re considering becoming a Breakaway Broker we suggest you brake before you break to make sure you are aware of the available independent models, firms, and strategies before you hit the gas. In our conversations with would be Breakaways, many aren’t fully informed about the myriad of options and structures available, and how to get from here to there. We’ll help to show you the roadmap before you take off driving.
- Should you break away or just break out?
A Breakaway Broker is wirehouse broker who “breaks away” from the wirehouse employee model to independence, whether it be with an independent broker dealer, RIA, or a hybrid. Breakout Brokers however, also want out of the wirehouse, but for now, independence isn’t what they are looking for. Breakout Brokers enjoy the familiarity and benefits of the employee model, but just want to be break out of the wirehouse jail. Some Breakout Brokers will move to monetize their practice through a compelling recruiting package deal now, and then Breakaway to independence when they are ready to sell their practice in 10+ years. The first thing to determine is if you are a Breakaway Broker or really a Breakout Broker. Consider reading our Breakout Broker BluePaper.
- To break away from one is to break into another
Making the decision to breakaway may be one of the most important professional decisions you make in your career as an advisor. To break away from one is to break into another. Take the time to fully explore your options to make sure what you break into really is a fit and not just the first firm you spoke with. Advisorbox can help you avoid jumping from the frying pan to the fire, or ending up with a less than ideal situation for what you really needed.
- Pure independence isn’t a deal breaker
Many would be Breakaways would rather keep their 40% wirehouse payout than spend 40% of their future time on business owner responsibilities of running a pure independence business model. Having all the responsibilities and being alone, sometimes gives potential Breakaway Brokers pause. Fortunately, you don’t have to be a full-blown card-carrying entrepreneur, to be independent.
- Soft Landings ease the break.
Breakaways can plug into another independent practice that provides the office, support staff, compliance, receptionist, and more. The Breakaway still owns their practice but can determine the level of support desired and the two independent business owners agree to a split on payout and/or office space. While sometimes these relationships result in long term win-wins, others will use the soft landing strategy to make the first months and year much less stressful by utilizing an established business already intimately familiar with the independent broker dealer, custodian, or RIA you affiliated with. This is an easier transition process with significantly less startup costs and typically higher net income than going it alone.
- Don’t break good faith following Broker Protocol
Every wirehouse advisor is familiar with the concept of Broker Protocol but not the details. We recommend fully reviewing the key points about Broker Protocol at the beginning of your breakaway evaluation process. While Protocol makes the breakaway process much easier than pre-protocol days, there are serious consequences for brokers who don’t take it seriously. If you are acting in good faith in following the Protocol you’ll be just fine but knowing the Do’s and Don’ts at the beginning is important. Consider reading our Broker Protocol BluePaper.
- Give yourself a break
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