- On March 27, 2017
Brake before you break. Wirehouse, national and regional broker dealer advisors on the employee platform considering independence have more options than ever. If you are considering breaking away from your W-2 model and become independent, it is worth the time to explore industry evolving available options making “breaking away” easier and more profitable. Regardless of your production, years of experience, or amount of structured independence you may desire, there are big and boutique firms offering a myriad of choices and structures to save you a lot of time, stress, and costly mistakes.
To Break-away from one is to break-into another. One of the first decisions you’ll need to make is how independent do you want to be. Do you want pure independence or a more structured model? Do you want to work from your home or have your own office and staff? Are you looking for just the highest payout and to be left alone, or would you like a more structured independence with support and plug-and-play systems? You already know you can establish your own RIA direct with a custodian or set up your own office with a independent broker dealer, but there are also big and boutique firms offering compelling soft landing opportunities as well.
Soft Landings ease the break. The way it works is that the wirehouse goes independent, gets a transition package, and plugs into another independent office that provides the office, support staff, compliance, receptionist, and more. The Breakaway 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, be apart of an office already intimately familiar with the broker dealer you just joined, and give you time to adequately build out your own office.
Give yourself a break. Many Breakaways don’t want to take away 40% of their future time just to run their business. They are willing to give up 60% of their payout to avoid doing so. Having all the responsibilities and being alone sometimes gives potential Breakaway brokers pause. Soft landings offer Breakaways the option to keep 60% to 70% net payout without all the same day-to-day headaches of doing it alone.
Pure independence no longer a deal breaker. The industry is filled with practice principals who relish their business owner responsibilities and embrace more of a pure independence model. While some entrepreneurs wouldn’t have it any other way, there is a more profitable and less stressful way through a soft landing structure. It’s not any less entrepreneurial to utilize the resources of another advisor entrepreneur to your mutual benefit.
You won’t breakdance but maybe you’ll feel like it. Comparing your Breakaway options can take a lot of time and it can be difficult to know what is available from indies offering soft landings in your area. Utilizing Advisorbox is also a soft landing to the soft landing process. We’ll share the soft landing/plug-and-play options we are familiar with, help you compare, be there through the process, and save you a lot of time. We have a soft consultative approach in sharing about the various soft landings available.
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