Why did you become a financial advisor? While it can certainly be a lucrative career choice, especially if you’re willing to do some legwork, there’s a reason why financial planning professionals have more overall life satisfaction than most Americans. This field offers a sense of fulfillment and making a positive difference while providing ample opportunities for interpersonal connections. In short, it’s a feel-good profession with real results.
The trick for many financial advisors is balancing your practice (how you develop relationships and help clients) with your business (navigating profitability, partnerships, and career paths). The good news is that you don’t have to choose between a purposeful career and a profitable business model that allows for a healthy work-life balance. Here are a few things for you to consider as you chart your course and think about how to build a business.
Career Path Options for Financial Advisors
Whether you’re asking, “What’s next?” or “Where should I start?” you have a few different options, each with unique challenges and opportunities. Most advisors start in a more structured environment, which provides a valuable opportunity to learn about operational processes as well as explore where they may want to focus their career down the road.
Option One: Wirehouses
Working for a wirehouse is the “go big” option. These large, well-established firms are often a good place for advisors to cut their teeth, since they may offer robust training programs and substantial resources. Additionally, these firms are usually household names; if you’re a wirehouse advisor, you’ll have the opportunity to rely on brand recognition to attract and retain clients.
Option Two: Registered Investment Advisor (RIA)
For many advisors, joining an RIA firm is the logical response to the (often) restrictive environment of a wirehouse. Unlike large firms, RIA practices aren’t limited by investment choices, cookie-cutter client interactions, or compensation structures. Since RIAs operate under a fiduciary standard, these firms typically focus on holistic, more personalized financial planning services.
Option Three: Independent Firms
For advisors who want total flexibility, going independent can be a rewarding career path. Starting your own firm or joining an independent practice can provide the opportunity to hyper-focus on the services or type of client that brings you the greatest career satisfaction.
Choosing the right path ultimately comes down to determining what provides you with the most career satisfaction while providing enough supportive services to eliminate business gaps.
Balancing Freedom and Responsibility
As with anything in life, there are tradeoffs to each of the career paths financial advisors can choose from.
As mentioned above, wirehouse advisors enjoy a broad range of resources that come along with a large, well-established firm. In addition to multiple investment platforms and product options, streamlined processes, mentoring programs, and a broad professional network, working for a large firm means you’ll likely have an easier time acquiring new clients. With efficient referral and lead generation processes in place, you’ll be able to spend less time searching for new clients and more time getting down to business. On the other hand, the very structures that help wirehouses thrive can often feel restrictive, especially in an industry that benefits from personalization.
So, is it better to go independent? You’ll certainly have more flexibility in terms of how you work with clients, including pricing models, products, and the company values you prioritize, especially if you’re fully independent. On the other hand, you may face a resource drought. You’ll be responsible for compliance, operations, and technology, which can take away from the time you’re able to spend hands-on with clients, doing what made you choose this career in the first place.
Get the Best of Both
When CAP Northwest was founded, we faced many of the same tradeoffs and challenges you may be facing. We wanted to serve clients in meaningful ways that aligned with our personal values and niche skills without sacrificing time and energy to tend to the business aspects of running a wealth advisory firm. As we’ve grown and created a robust practice and professional network, we’ve been able to expand our focus to supporting advisors like you. We seek to empower growth and success not just for our clients, but for other advisors who could benefit from a professional environment that pairs freedom with professional resources. We provide you with the resources to scale your practice while improving your service so you don’t have to choose between a successful career and one that brings you personal satisfaction.
Every advisor at CAP Northwest is independent, but we collaborate to grow, support, and champion one another’s successes as we create a more positive experience for our clients. If you’ve been looking for a way to benefit from the freedom to handle your practice your way without worrying about the pressures that come with going independent, we’d love to discuss how we can help streamline your success.
