Here’s a fun summer hypothetical: Imagine you’re lying by the pool, 80 degrees and sunny, nice breeze, no emails to tend to … all-in-all perfectly content. And then suddenly, you think, “A nice cold drink would be so great right now.”
What do you do? On the one hand, it would be refreshing (and tasty!) and perhaps take your level of comfort to a whole new level. On the other hand, you’re just so comfortable lying on that lounge chair—leaving what has become a familiar “summer comfort zone” could blow it all up.
This is the dilemma that many advisors face today: We call it “freedom vs. familiarity.”
No doubt, the stakes are a whole lot higher than disrupting the moment to get a cold drink on a summer day. But what if the comfort you’re experiencing right now is quietly costing you growth, control or alignment with your values?
Advisors are constantly doing mental math when weighing familiarity against the allure of freedom—and this is our attempt to lay out the case for disrupting comfort and inviting change.
The Case for the Familiar
The proverbial “devil you know” is worth something
There is a reason most advisors do not change firms each year, and it’s because there are tremendous benefits to the comfort, safety, stability and familiarity of the status quo. Most wirehouse advisors have become very adept at navigating the challenges of their own firm, and many top advisors have a direct line to top management. All of that has great value and can be hard to let go of.
The concept of “better enough”
Arguably, the most valid reason for staying put is the notion that you have conducted thorough and thoughtful due diligence and truly believe there is no better home to run your business than your current firm. If that is the case, then you absolutely should stay put. But don’t let the idea that “there is nothing else better out there” become a crutch, especially if you haven’t explored options in recent years. The landscape has evolved and expanded tremendously. Thinking “it’s good enough” is not the same as thoughtfully concluding that nothing else is “better enough.”
Business has been good
Since the pandemic, many advisors have enjoyed outsized growth, record years and new highs in terms of assets managed and revenue generated. And it can be very difficult to “upset the apple cart” amid that success. Often, the firm itself plays a key role in helping advisors grow—either via the strength of their brand, resources, management, etc. We would only point out that some advisors have grown exponentially in recent years, despite, not because of, their firm.
The Case for Freedom
First, let’s clarify what we mean by “freedom.” We do not (necessarily) mean independence, nor are we suggesting that all advisors should establish their own RIAs. Instead, we define “freedom” as a concept where advisors can:
-
Run their business and team as they see fit
-
Earn fair compensation relative to the value the firm provides
In short, we are referring to the concept of agency: We define an advisor as “free” if they have the agency to live their business life on their own terms. With that in mind, here are three arguments for pursuing a more “free” path even if the status quo is comfortable and “good enough.”
It can be a force multiplier
Every single transition involves a trade-off. Advisors who are now running multi-billion-dollar businesses at regional, boutique or independent firms likely took a leap at one point or another that meant leaving the world of comfort and security behind. But they came to realize that, in the long run, it was worth the pain and hassle to ultimately get to a more optimal place.
Once you see it, you can’t unsee it
To harken back to the vacation analogy, the problem with thinking about the cold drink (even if you decide not to get up and get it) is that it becomes harder and harder to ignore, no matter how hard you try. Many advisors find that to be the case with due diligence. That is why we advocate for “scratching the itch” with periodic strategic education. It’s the only way to know if your current firm continues to be the right partner for you and your business.
What if the comfort is just an illusion?
In light of recent significant changes in our industry (including major acquisitions and compensation plan changes), we think the single most compelling argument against the comfort of the status quo is the idea that it really might not be all that comfortable. Why? We have, unfortunately, seen too many times how vulnerable employee advisors are—especially those at the largest firms. Even excluding terminations and the like, advisors are susceptible to changes in firm policies that they disagree with, and they have little (if any) ability to change. That may sound dramatic, but it is the truth of being an advisor at the traditional firms in 2025.
July is all about freedom (or at least, that’s what the fireworks and flags remind us). But for many financial advisors, freedom isn’t just a patriotic theme—it’s a career question. Because staying where you are is easy. Familiar. Even comfortable.
Freedom, though, sure has its perks too.
#Dilemma #Facing #Financial #Advisors