- The Truths of Transitions
- Avoiding Legal Action
- Achieving a Successful Move
Wait 30 minutes after eating before swimming… swallowed gum stays in your stomach for 7 years… cracking your knuckles causes arthritis. These are just some of the myths that have been commonly perceived as truths and as such, swayed our actions. Myths are all around us and have the power to influence a person’s decisions despite a lack of evidence to show that they’re accurate — and that holds true for advisors and the potential outcomes of making a big move.
Every day advisors are taking their careers to the next level and choosing to make a move and switch firms. Despite the success stories and the sheer number of advisors that have changed firms over the past 5 years, many advisors are demotivated and deterred by the myths of moving. As a result, some elect to stick it out where they are and miss out on an opportunity.
Debunking these myths helps advisors make better-informed decisions and realize their full potential. As the industry’s leading Transitions Specialists, 3xEquity knows the importance of advisors seeing both the big picture and the nuanced details of any deal if they are going to make the right move. It’s our role to help guide you through the entire process and that means clearing the air of all misconceptions and myths that may send you down the wrong path.
So, let’s dive into some of the top reasons keeping advisors from making an advantageous career move — or as we call them, the Top 3 Myths of Moving.
- Making a move will result in my current firm taking legal action against me.
It’s true that making a move comes with its risks, but after all, “no risk, no reward.” When the Broker Protocol is at play, advisors have a great deal of protection. For those making a non-Protocol move, there are ways to minimize the risk of legal action. More often than not, the firm an advisor is leaving will retaliate with legal action when it’s clearly warranted — for instance, if the departing advisor clearly broke their rules in their employment agreement or cut corners along the way.
If you stay within the lines and adhere to all the rules and regulations of a transition, then the chances of legal action are minimal. Working with a Transition Specialist and legal consultant can go a long way in the successful transition of an advisor.
- When I make the move, many of my clients won’t make the transition with me.
While it’s reasonable to have this fear, the truth is, your clients trust you… not the name of the firm. You’ve put in the hard work to make a personal connection, earning your client’s trust and loyalty along the way and that is the determining factor. Chances are what you’ve done for them thus far and your role in helping them achieve their financial goals has given them the confidence and desire to stick with you no matter where you go.
Our 2021 Financial Advisor Transition Survey Report shows that there’s not a lot of evidence supporting the idea that clients don’t make the move with their advisor. Of all the advisors surveyed, a large majority of them were able to move over 85% of their AUM to their new firm.
- Retirement is just around the corner and staying put is the best way to monetize my business.
While there’s nothing wrong with staying with your current firm and riding it out until retirement, you might be leaving money on the table by doing so. For those that are nearing retirement, making a move can lead to them essentially getting paid twice for their business, once when they make the move, and again when they retire.
Working with a Transition Specialist, like 3xEquity, can help ensure that you get the most for your business in both the short term, as you make a move, and when it comes time to actually retire. Don’t settle for staying at your current firm just because retirement is around the corner, explore all your options so you can start your new chapter feeling like you got the most for your life’s work.
It’s easy to get caught up in myths, especially when they are commonly talked about as truth. But your career and earnings potential are too important to be swayed by such nonsense. As you consider making a move, don’t let these myths be the barrier keeping you from finding new heights of success — make your decision based on the facts, not the misconceptions.
If you’re ready to consider a move, let 3xEquity be your Transition Specialist. We help you every step of the way — debunking misconceptions and opening your eyes to opportunities. With 3xEquity by your side, you’ll get multiple offers from top national and regional broker-dealers in just a few days — all while you stay anonymous. Let our experts look out for your best interests and help you find the best home for your business.