As many have posted in the past, you are the product.  The b/d you choose to hire for necessary services is not material.  The name on your paycheck should only ensure that you follow industry rules (compliance) and only dictate to you the days of the month you get the paycheck.  Brand imaging only applies to a naive consumer.  Every big corporate brand in our industry is on the take from the Gov’t.  They have proven, just like congress, that they cannot effectively manage the situation.  Your clients call YOU with questions, not the 800 number of the BRAND to speak with a $7.25 hourly employee. 

We made the move in late November of last year - amid the Wall St. turmoil, bailouts, reserve fund debacle, etc.

After 2.5 years as an Indy with LPL, the “what ifs” that ran through my head before making the jump, proved to be non issues.  Make the committment, move forward and know that from day one, you will be building your own business. 

In a down market, the worst thing one can do is take no action.  Your clients will respect that you are making a difficult decision at this time.  A few things to consider.  Make sure the firm you choose carries accounts at a recognizable clearing firm.  People want to know their money is safe and clients make the checks payable to the clearing firm that carries their brokerage accounts.  As for your fear about name recognition, it is more important that they recognize who holds onto their assets than the name of your broker/dealer.  Most of the independents have reps that use a DBA name, so name recognition is not the critical factor.  You are.  LPL is the biggest independent out there, yet what does the average person know about LPL?  When you do move, make sure you can tell your clients why this change is good for them. 

I made a move a few years back to a privately held, self clearing BD that’s over 100 years old. It was a great decision. Payout is great, access to many different managed platforms and selling agreements with just about every fund company or insurance carrier you can think of. Let me know if you would like to know more about the firm.

[quote=sickowire]

Considering going indy but concerned its too tough an environment to move.  The indy firm is a national firm but not recognizable in my region and I’m worried clients may balk b/c never heard of the firm.  Any feedback of recent moves from wire to indy in the past few months are welcome.

I left Smith Barney 2 months ago to join a growing Indy B/D who clears through Pershing.  I haven’t had any pushback from clients.  The wirehouse firms have laid a yellow brick road to leave.  Some of the key things I focused on for my clients was a TRUE open architecture platform, no tiered money market rates and lower account fees.  Personally, the story is even easier to tell with Pershing b/c they are the #1 clearing firm on the street and owned by Bank of NY Mellon, who is primarily a custodial bank and trust company.  THey immediately gave back their TARP money and have made it through this whole banking crisis relatively unscathed.

SickofWire, if you would like to learn about my B/D, send me a personal message and we can talk.  We have a great platform and are definitely worth considering.

I just left a month ago to go Indy from ML. The response has been fantastic. I had people that were a lot angrier at ML than I had ever imagined. Of my top 30 households only a couple even asked much about the new company, they were just glad that I was out of ML.

I am thinking about leaving Smith Barney and would like more information about your B/D. The new grid is killing me and their arrogance is pissing me off. I have a great manager and would really like to see the entire office make a move but I think that is wishful thinking.

[quote=Delmarva]I am thinking about leaving Smith Barney and would like more information about your B/D. The new grid is killing me and their arrogance is pissing me off. I have a great manager and would really like to see the entire office make a move but I think that is wishful thinking.

I have been hearing a lot of the same comments lately.  The one item that I think most advisor's do not get is that there are two parts to the advisor's world:  One is RIA and the other is BD.  Most advisors will look for a BD to affiliate with and think that is going independent.  I think that avenue is a hit or miss.  My first three clients asked me get them out of their indy BD situation after a year.  One was the largest ML producer in Arizona.  Opening up you own RIA firm is fairly straight forward and you can do that with ZERO assets.  BD is a different situation.  BDs are harder to setup.  For adivisors that want a BD relationship I have a series of BDs that I will refer clients.  The mistake most make in this model is the advisor will create a relationship with a BD and the BD wants a percentage of the RIA business.  So now as an advisor you are thinking, what is the point why don't I just join an indy BD.  Well I have relationships where the BD does NOT take a percentage of the RIA business.  So now you as the adivisor own your own firm making a 100% of the revenue (no markups on the products) and about 80-90% on the BD business.  And you NEVER have to ask your clients to sign another account transfer form!!! 
As far as lifting your whole office, I am working with a EJ manager to potentially do the same thing.  At the end of it the manager will act as manager of the new independent firm that is owned by the advisors as partners.  If you think this is a good model, please give me a call and we can talk further.  At least having all the information will help you make a good decision.

Good Luck.

ash
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