Six Factors That Trap Advisors in Indecision Mode

I have too many clients

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Large books of business can present challenges and may even make a transition more cumbersome or time-consuming—but they’re certainly not impossible. Firms have gotten infinitely better at supporting transitions, regardless of book size. Moreover, a transition may present a good opportunity to cut ties with less profitable clients and relationships.

I have money left on note/obligation

This is a question of pain vs. gain, a topic we recently covered for this publication. Some firms are even willing to reimburse for outstanding note obligations in recruiting deals. But typically, the more money left on a note, the more pain an advisor would need to be in to consider leaving early and paying back the balance.

I’m too old to move

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You’re never too old—we’ve helped advisors in their 90s change firms and models. And many firms offer creative structures for senior advisors to retire/sunset out and thus “move once and monetize twice.” Instead of considering age as a barometer, I would consider whether your current firm has the right legacy for your clients and your business.

I just signed a retire-in-place agreement

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This is an instance whereby you may very well be stuck. But it’s worth having an attorney closely review the agreement to advise whether there are repercussions (monetary or otherwise) for terminating the agreement and if there are additional non-compete or non-solicit provisions.

I’m part of a big team.

The big firms love having advisors on teams because aside from there being strength in numbers when it comes to client care, it’s also more difficult for advisors to leave. But what happens if you are less satisfied with the status quo than your partners? It boils down to weighing how unhappy you are vs. the value of the partnership. If the value you get from the latter is greater than your overall unhappiness, then it makes sense to stay the course with the team. But if you get to a point where you look to the future and worry that your vision is very different from that of your team, or if you have less to gain from the partnership than they do, it may be time to consider your options.

The grass isn’t greener, it’s the same everywhere.

It’s easy to be cynical and presume it’s all the same everywhere. And the truth is, there was a time when options were much more limited. But today, advisors have benefited from an expanded industry landscape where the waterfall of possibilities is more robust than ever before. No doubt, advisors may choose not to move because they aren’t motivated to do so—but it’s not due to a lack of optionality.