Independent advisors happy to break away, finds survey

All respondents polled agree independence worth the struggle and would do it all over again

Independent advisors happy to break away, finds survey

While taking the leap may be daunting, the payoff to becoming an independent financial advisor is well worth it, according to a new survey.

In the inaugural 2021 Dynasty Breakaway Survey, 23 U.S.-based advisors from Dynasty Financial Partners’ network of independent RIAs, representing around US$27 billion in assets, shared the different ways that their decision to go their own way has proven to be fulfilling and lucrative.

“We verified what we had long been hearing through the grapevine,” Shirl Penney, CEO of Dynasty Financial Partners, said in a statement. “That is, our breakaway advisors value their independence for reasons they have no trouble articulating.”

Among the poll participants, more than nine tenths agreed that since transitioning to independence, they’ve seen an increase in their net worth (91%), have developed better relationships with their clients (96%), and have more freedom to focus on their clients’ unique needs (91%).

A similar majority of respondents (91%) said that the resource partners they work with as independent advisors provide more value than what they had available to them before they broke away.

The advisors were also unanimous in thinking that as independents, they have a greater opportunity to build equity value in their business.

The advisors in the survey acknowledged that the road to independence wasn’t perfectly smooth and straightforward. Among other obstacles, the respondents said that they had to navigate a steep learning curve, and had to face challenges associated with building a business practically from the ground up.

Still, 100% of advisors said that independence was well worth the struggle, and would do it all over again if they had the choice.

“These breakaway RIAs are helmed by entrepreneurs who know that every transition comes with friction, and that engaging transition experts and keeping the big picture — more customized solutions, better client service, greater equity value — in view is imperative for success,” said John Sullivan, head of Network Development at Dynasty.


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