Commonwealth: The Costs of Going Independent [Infographic]
If you’re contemplating breaking away from a wirehouse for the independent channel, a key factor to evaluate is how your compensation will change. But beware: you can’t make an apples-to-apples comparison of the two business models.
For example, while your payout may be higher as an independent advisor, some of this increase will be offset by new expenses, such as rent, payroll taxes, and marketing materials. On the flip side, there may be additional revenue sources to consider, including potential retirement income derived from selling an independent practice.
Check out this infographic to help you decide if the savings outweigh the costs of going independent.
Moving from a wirehouse to the independent channel comes with many intangible benefits as well—such as the value that comes from having full control over your business decisions. But only you can decide how much they’re worth. In the end, as an independent financial advisor, you choose what’s best for you and your clients, reinforcing your role as a trusted advisor.