Two years later, a Merrill Lynch breakaway team has no regrets
No one took a pay cut, no one is answering to a manager anymore, and there's never a question about buying a stapler
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See more related moves
LPL Financial
RIA-Friendly Broker-Dealer, RIA Welcoming Breakaways, Advisory Firm
Top Executive: Dan Arnold
Raymond James Financial Inc.
Asset Custodian
Top Executive: Bill Van Law
Guest
Fun story on some of the behind the scenes activities on a breakaway. I did the same with a partner a number of years ago to join a small independent RIA. We’ve tripled the assets in the last 7 years and we and our client’s are way better off versus being captive in the wirehouse world. However, I would challenge the “no one took a pay cut” comment especially when it is followed by “though they have chosen to invest some of the profits they might otherwise have taken home back into the business.”
Welcome to the real world… this reinvestment will never end. There’s an array of reinvestment opportunities from systems, services, and marketing, to compliance, legal and insurance. Not that these investments aren’t worth making the change, but people shouldn’t make the switch expecting that these expenses will eventually go away “when everything settles.” It will never happen… especially at $250 million in AUM. Multiply that by 5 or 10 and you’ll start getting some economies of scale, if you’re good.
Another Guest
Similar story here, (transition from a wirehouse to an Independent B/D). The best move I’ve ever made.
**Full Disclaimer: The independent channel is not for everyone; if you don’t know how to run a business, you’re probably not ready to be independent.
