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Mindy Diamond on Independence: Should You Go for the Forgivable Loan?

Louis and Mindy Diamond provide an industry update on recruiting.


It’s a question that advisors often ask themselves when considering a move:

“Should I go for the short-term windfall or bet on the long-term potential?”

The merit of forgivable loans tied to recruiting is an ongoing debate in the wealth management industry. The decades-long convention for advisors considering change (especially those in the W-2 world) is to monetize the business by negotiating a lucrative transition bonus with competing organizations.

Yet those on the independent side often talk about building long-term enterprise value and controlling one’s own destiny instead of focusing on deals.

Given its popularity, we decided to take a deeper dive in this podcast episode.

Is it wrong for an advisor to seek monetary remuneration for taking the risk and going through the hard work of a transition? Absolutely not!

Is it better for advisors to self-finance their move and focus on the longer-term economics of independence? Possibly.

Mindy and Louis consider both sides of the argument, including:

  • The current state of deals—and how they differ depending upon firm and channel.
  • The impact of advisor mindset—and how it has influenced change in the industry.
  • The real value of a recruitment deal—and how to reconcile leaving potentially life-changing money on the table when going independent.
  • The short-term windfall vs the long-term potential—and how to think through what’s best for your business life.

This episode may not settle the debate over whether you should opt for a forgivable loan or not—but it will give you some food for thought when considering what’s right for you.

Download a transcript of this episode…

Listen to the podcast

Listen to more episodes of Mindy Diamond on Independence: A Podcast for Financial Advisors Considering Change.


Mindy Diamond is CEO of Diamond Consultants in Morristown, N.J., a nationally recognized boutique search and consulting firm in the financial services industry.

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