Financial Advisors: When You're Thinking About Going Independent

You've passed your securities exams, honed your craft for a few years at a big firm, proven you can sell yourself to big clients and retain them once you have them on board, and now you're thinking about going independent and working for yourself.

To be certain, there are many benefits to going independent as a financial advisor. First and foremost, you are your own boss, meaning you set your own rules (provided they keep you within the parameters of the various regulatory agencies) rather than being constrained by the often recondite policies and procedures of big financial firms.

Not to mention that as an independent advisor, you have autonomy over your own compensation. You choose your fee or commission structure based on what you feel the market will bear given your individual circumstances and target clientele, whereas when you're an employee of a firm, they take the lion's share and you get whatever you can negotiate.

Finally, being independent means having a business over which you have ownership. When you work for someone else, all the business and all the clients you bring in ultimately belong to the firm, and when you decide it's time to retire or move on, the firm retains that business -- the fruits of your hard work. Being in business for yourself means your clients are yours. When the time comes to retire, you're free to sell your business for a nice nest egg or pass it on to one of your children.

Going independent as a financial advisor can grow your income, give you ownership of your own enterprise, untangle you from corporate red tape and get you out from under the thumb of a boss. But if it were easy, everyone would do it, and the big financial firms would be bereft of employees.

According to financial advisor recruiters Scottsdale, the big guys always have a robust queue of willing workers. The reason is that going independent is hard, hard work, although the payoff usually justifies it.

Here are some things to keep in mind if you are thinking about going independent.

You lose your boss, but also a large support system. Working as an employee can constrain your income and your day to day practice, but it also offers some benefits, such as having someone else do the marketing on your behalf and serve as an intermediary with the myriad of regulatory boards. When you're independent, that's all on you. That is why many advisors who branch out on their own elect to work independently but as part of a partnership rather than completely alone. You and your partners can bounce ideas off each other and keep each other accountable when it comes to sales, marketing, and compliance. A good financial advisor recruiting firm Scottsdale can help you find independent advisors looking for partners.

Your income is unlimited -- in both directions. When you work for yourself, you aren't limited in income to how much your firm wants to pay you. But you also lose that base salary, draw, or guarantee that most firms provide. Even though a good independent advisor will make a lot more in the long run, it can take months or even a few years to build your income to where it was when you were drawing a paycheck from a firm. Keep that in mind, and don't make the jump until you are financially secure enough to withstand a smaller paycheck for a little while.

Rhino Search Group is a financial services recruiting firm known for its valuable client relationships with the most trusted financial brands. Contact our financial advisor recruiters if you are looking to make a move, or buy/sell a book of business. Visit the site: http://www.rhinosearchgroup.com/