Advisors who frequently move to new firms can expect to make less, according to WealthManagement.com's annual compensation survey.
“When you move, you’re kind of recalibrating, reinventing yourself in terms of your business. And it just takes time to ramp back up,” says Matt Lynch of Tiburon Strategic Advisors.
Moving every few years is like taking equity out of the business along the way, instead of at the end of a career, Lynch says.
That’s not to say it’s a bad thing. For some advisors, those periodic retention bonuses or moves are part of their overall plan.
“They recognize the tradeoff, the costs associated with it,” Lynch says.