Benefits of Going Independent as a Financial Advisor
The decision to go independent as a financial advisor is one that many in the industry consider at some point in their careers. While the security and resources of working under a large firm can be appealing, the advantages of independence can offer significant professional and personal rewards. If you’re contemplating making the leap, it’s important to understand the key benefits that come with independence. Below, we explore the top reasons why going independent could be the best move for your career.
1. Greater Control Over Your Business
One of the most significant benefits of going independent is the ability to take full control of your business. As an independent advisor, you have the freedom to:
This level of control can be empowering, allowing you to build a practice that is aligned with your vision and goals.
2. Increased Earning Potential
While the transition to independence comes with its own set of challenges, it also offers the potential for increased earnings.
The estimated difference in annual income between an independent financial advisor and one employed by a broker-dealer, insurance company, or large financial institution can vary significantly depending on factors such as AUM (assets under management), fee structure, location, and business model. However, here are general estimates based on industry data:
Estimated Income Difference:
Breakdown:
Independent
Employed
Considerations:
While independent financial advisors typically face higher overhead costs—such as technology, compliance, and administrative support—they gain greater control over their business, pricing, and client relationships, along with the opportunity to build long-term equity in their firm. In contrast, advisors employed by broker-dealers or large institutions often receive built-in operational support and employee benefits, but they have less autonomy, limited flexibility in how they serve clients, and no ownership in the business they help grow.
3. Enhanced Client Relationships
As an independent advisor, you have the unique opportunity to cultivate deeper, more meaningful relationships with your clients. Freed from the limitations of a larger firm, you’re able to offer highly personalized service that aligns closely with each client’s specific needs. This autonomy also gives you greater control over how and when you engage with clients, fostering consistent communication and trust.
Operating independently often means adhering to a fiduciary standard, reinforcing your commitment to always act in your clients’ best interests. These factors—personalized service, direct interaction, and fiduciary responsibility—help create stronger, trust-based relationships that lead to higher client satisfaction, better retention, and more referrals from loyal clients.
4. Professional Growth
Going independent often opens the door to meaningful professional growth and a deep sense of satisfaction. As an independent advisor, you have the freedom to be more creative in how you approach your work—from the way you market your services to the tools and technologies you choose to implement. This freedom encourages innovation and allows you to tailor your practice to reflect your unique vision. The responsibility of running your own business also drives continual learning, as you’re constantly adapting to new challenges and expanding your skills along the way. Perhaps most rewarding is the pride that comes from building something of your own. Seeing the direct results of your efforts—whether in client success, business growth, or personal development—can be incredibly fulfilling. Together, these experiences contribute to a greater sense of accomplishment and lasting job satisfaction.
5. Building Equity in Your Practice
When you choose to go independent, you’re doing more than generating income—you’re building a lasting asset. As your client base and revenue grow, so does the value of your business, turning your practice into a source of long-term financial security. Over time, it can become a key part of your retirement strategy or a foundation for future financial goals. Beyond financial benefits, independence gives you the chance to create something enduring. Whether you eventually pass your business down, sell it, or merge with another firm, you’re building a legacy that reflects your values and hard work. This opportunity to build real equity is one of the most rewarding and distinctive advantages of forging your own path.
Summary
Going independent as a financial advisor offers numerous benefits, from greater control and increased earning potential to enhanced client relationships and personal satisfaction. While the transition requires careful planning and commitment, the rewards of independence can far outweigh the challenges. If you’re ready to take charge of your career, build a business that reflects your values, and enjoy the professional and personal benefits of independence, Aurmis is here to help you every step of the way.
