3 Questions Financial Advisors Need to Answer Before Transitioning

Answer These 3 Simple Questions First

More and more wealth managers and financial advisors continue to leave traditional firms to work for an RIA, or independent broker dealer, for the flexibility it affords them and their clients. If you’re a financial advisor with an entrepreneurial spirit, then the thought of making a similar move may have crossed your mind once or twice. Are you ready to take that leap, or do you still need time to get all your ducks in a row?

Things to Consider Before Making a Move
Shifting to your own financial advisory firm involves risk, so for starters, you’ll want to have the right answers for these questions:

  • Would a move from your current situation allow you to better serve your clients?
  • Why do you believe transitioning to an independent firm—or starting one of your own—is right for you now?
  • What’s your meticulous game plan—logistics, infrastructure needs, product capabilities, tools, etc.?
Answering each of these thoroughly is a critical step to take before you decide to make a change.

Consider Everything
Over $250 billion in assets have left large firms in the last five years, according to Investment News. These transitions required copious amounts of due diligence and planning. Research, preparation and the development of a contingency plan for potential roadblocks is helpful for each critical step in the process.

Whether it be finding suitable office space, evaluating data aggregation technology, or ensuring your product capabilities post-transition are as robust as ever—there’s a lot to consider. It’s not uncommon to need to reassemble these capabilities with new partners, service providers, vendors and technology.

Rely on colleagues who have successfully made the transition, and consult with legal, accounting and banking partners. Most of all, trust in yourself.

TriState Capital Bank: Here to Help
There’s no doubt that transitions can be stressful. But they can also be exciting and create opportunities for personal and professional growth. As an advisor-centric bank, TriState Capital Bank serves as a trusted partner for thousands of wealth managers and financial advisors as they transition to joining or launching independent firms. We are a leading provider of securities-based lines of credit (SBLOCs) and can help meet refinancing requirements as you transition your clients between firms. If you’re interested in learning more about how TriState Capital can help you make a smooth and successful transition, we’re ready to help. Let’s start the conversation today.

Experts are behind every choice we make.

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