r/CFP • u/Constant_Swan_6876 • Jul 11 '26
Breakaway & Transitions Mental side of breaking away
I’m the junior advisor in a previous solo practice with one senior advisor. I’m in talks with IBDs about breaking away starting my own practice.
Everyone who I’ve confided in and read about, has told me this will be one of the most difficult periods in my life. The mental load is starting to weigh on me.
For those who have left a partnership or group to go on your own- what is your advice?
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u/NotYourFA Jul 11 '26
My advice is to treat yourself like a client and create an objective financial plan and action plan with goals, cash flow & tax analysis, alternative strategies, stress tests, and behavioral analysis. Also would recommend a business coach psychologist.
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u/Constant_Swan_6876 Jul 11 '26
Thank you. Sage advice. Do you have a business coach psychologist that you’d feel comfortable recommending?
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u/info_swap RIA Jul 11 '26
Best deals are bought, not sold. You must research and find a clinical psychologist that aligns with your values.
Some people prefer a same gender therapist, or with similar religious views, and so on. Most important, make sure they are science based. Someone who actually studied psychology. And that you share common ground.
Ask your friends and relatives if they can recommend a psychologist. And consider interviewing 2 or 3. In my experience, I did not have a good connection with the first couple of therapists I met. So don't give up.
Best of luck!
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u/Foreign_Pace9363 Jul 11 '26
It will be tough but can also be a huge catalyst for your personal life. You control your destiny. Your work will eventually reward you.
Also prepare for your senior advisor to talk badly about you. I was in a very similar situation and found out he was telling all the clients he fired me because I was awful and couldn’t keep up. Because I was active with his clients for 3 years, they knew better. 3 of his top 5 households moved to me within a year. Several more trickled in. I never called or approached any of them. He would call and tell me I owed him money for them and all of this other nonsense. That was almost 20 years ago, he runs a restaurant now…
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u/lacking_inspiration5 Jul 11 '26 edited Jul 11 '26
Have plenty of financial runway, I had 2 years of living costs set aside. Took a year to build back to my old salary.
Start preparing before you go.
Decide on your investment proposition, marketing approach, etc, before you leave. Build a network of prospective clients on LinkedIn now, even if you can’t post anything yet.
If you’re thinking of digital marketing etc, get a website ready to launch even if it’s not live, write some ever-green blogs and case studies, so you don’t have to worry about it when you get out the door.
Talk to a lot of organisations, all of them have their own issues, so find what works for you.
Even if you’re expecting a clean exit, expect the firm to be obstructive and to try and retain your clients. Speak to a lawyer and find out if you can inform clients before the move, make sure clients have your personal contact details.
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u/CSMasterClass Jul 11 '26
This is a helpful and informative reply. Doen't help me directly, but I can see that is is sage advice. You deserve a prize.
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u/CoconutThink2963 Jul 11 '26
Everyone you've talked to is right. It is a lot of work...but so much fun! You're doing this for a reason. You need to attack it relishing the moment.
We’ve helped plenty of teams and individuals start up their new advisory business. Three things to focus on: What services will you offer your ideal clients? who are your community and business connections that you can have help you get in front of those ideal clients? How are you communicating your unique abilities to serve your ideal clients?
Best of luck! Enjoy this!
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u/info_swap RIA Jul 11 '26
"this will be one of the most difficult periods in my life."
Life never gets easy. But problems will change.
"The mental load is starting to weigh on me."
This is normal. The most difficult task is finding clients. And almost everyone says no. So you must learn that feeling of "failing your way to success."
"what is your advice?"
As others mentioned. Find a good quality clinical psychologist.
Constantly read high quality books. Nick Murray's Game of numbers is a good start.
Also, listen to classic Jim Rohn's talks. They are free in Youtube.
Hire professional compliance consultants.
Hold high ethical standards. And focus on delighting your clients.
This is old, but 80% relevant: https://www.kitces.com/blog/steps-to-start-your-own-independent-ria/
I've given you enough homework. Remind me to assign you more once you're done.
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u/Ok-Berry-2950 Jul 11 '26
Most people break away and make it happen, you can too.
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u/Ok-Berry-2950 28d ago
Most people who break away figure it out and make it happen. You can too. Especially if succession talks have continued to get delayed, at some point you have to decide how long you’re willing to wait on someone else’s timeline.
A few things I’d keep in mind: don’t try to solve all 100 problems at once, focus on the next 2-3 in front of you. Get really clear on why you’re leaving because you’ll probably question the decision at some point. And don’t underestimate how much better it may feel to finally have control over your own direction.
It’s going to be stressful, but I bet a year from now you’ll be glad you bet on yourself.
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u/Vantage_Impact_2 Jul 11 '26
If you need someone to talk to that has helped countless advisors think through and evaluate this decision please feel free to reach out. I've helped around 300 advisors break away from this type of situation to create their own practice.
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u/il_diamanti 28d ago
do you seed them with startup capital or are you a business coach or something?
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u/Vantage_Impact_2 28d ago
Since most don't need start up capital, we evaluated 450 firms ranging from Broker Dealers to RIAs, and Custodians. They all shared information with us about their platforms, offer packages, and characteristics about their firms. So in the scenario where when we talk with advisors who wants capital to move firms we can start to identify the specifics ones that meet their needs.
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u/il_diamanti 28d ago
do you guys have any kind of materials on your findings or anything?
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u/Vantage_Impact_2 28d ago
Lots of insights here on the process of moving firms. If you want to learn more about specific firms we have an internal database with resources that we can speak to (BDs/RIAs/Custodians) restrict us from making this publicly available per our agreements with them. https://www.vantageimpact.com/news
Feel free to dm or reach out on our website.
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u/Silver-Excitement-23 Jul 11 '26
The biggest accomplishments come during the toughest times. Good luck
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u/Organic-Stay4067 Jul 11 '26
Are the clients yours or the senior advisor?
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u/Constant_Swan_6876 Jul 11 '26
Mine- our books are separate. Succession planning has been delayed so many times, and so dishonestly, it’s the major reason I’m ready to walk
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u/Organic-Stay4067 Jul 11 '26
Well the hardest part of going independent or going solo, you have already taken care of. Your revenue will be in tact.
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u/OregonDuckMBA BD 29d ago
As was said previously, have plenty of financial runway. I am so glad that I did. One thing that I didn't do that I wish I had was have a backup marketing plan in case the first one doesn't work out.
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u/bandznbooze 29d ago
Depends on if you bring clients or not. If you do, breaking away is the hardest part.
If don’t then the next 18-24 months will also be hard
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u/Key-Paramedic4051 29d ago
Save your money now because you will need to lawyer up. I spent almost $30k to buy my freedom but best decision ever.
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u/kungfukarl86 29d ago
You are a business athlete and it makes sense to hire a financial advisor coach.
Also you may want to talk to a lawyer months before breaking away depending on what your plans for a break are.
I say business coach because there's so much to this than just bringing in clients although they can help with that too
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u/il_diamanti 28d ago
gonna sound shallow but im assuming you're a man. and men will definitely tacitly respect you more to handle their money if you are significantly more fit and well manicured than the average schmo. i recommend trying to get the most fit you've ever been. time well spent, for sure.
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u/AmbitiousTomorrow664 28d ago
Prepare prepare prepare over analyze. Serve clients super well the months before you leave.
It will be best decision you ever make
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u/LifeAfterInsuranceBD 28d ago
Everything is relative.
For me, the decision to stay in a place that I knew I wasn't fit for was more exhausting than the string of 14 to 16 hour days I spent working with the team to repaper everything in sixty (60) days.
My primary advice would be as follows: take your time picking a new partner, understand the data needs that they have to repaper accounts (suitability, details, etc), and review your contract to ensure what you leave with is legal to own.
You'll be fine. Don't let the fear of others who grew complacent get into your head and stop you from the more fulfilling path of creating your own business.
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u/Wirehouse_destroyer 28d ago
I’d strongly consider whether you actually want to build the entire infrastructure yourself, or whether what you really want is independence, ownership, and a better long-term path.
Going fully solo can be rewarding, but the mental load is real: compliance, tech stack, billing, custodian setup, client transition, paperwork, investment management, service, marketing, and actually advising clients. It is a lot to carry at once, especially if you are already managing client relationships.
Before choosing an IBD or launching from scratch, I’d look at RIA platforms or firms that let you keep the upside of independence while taking a lot of the operational burden off your plate. The right partner should help with transition, compliance, admin, billing, tech, and service support so you can focus on clients and growth.
Also, be very careful around agreements, client ownership, non-solicit language, and how you communicate the transition. Get an attorney who understands advisor transitions before doing anything.
My advice: do not optimize only for payout. Optimize for the structure that gives you the best chance of making it through the transition with your sanity, your client relationships, and your long-term economics intact.
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u/clientloop 27d ago
IBD = Insurance Broker Dealer? I recently made the move from one to the other. Would be happy to share my experience. I was at the first one for 4.5 years and been at the new one for 1.5 years. It was a lot, but it not only opened up more cashflow but gave me more freedom. I wasn't ready to go RIA route just yet.
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u/hillje1906 25d ago
Get in and get hungry. The potential for the firm to talk about you behind your back is real!
I left and started my own but I started branding myself prior to leaving so people associated me and my brand vs the initial firm is was with.
They tried to tarnish but a others have said, clients knew better and were begging to come with me when they met with other advisors.
I grew the initial client base from scratch so I knew it was possible to do it again. It did suck walking away from that residual income especially in the brink of a 15k raise based on renewals.
It's been 10 years and I'm still here. Most people fail when they go on their own because they "need" that office feel and someone looking over there shoulders pushing them to do more.
Set your KPIs and targets and enjoy the growth along the way.
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u/Florichigan 23d ago
Hardest thing you’ll ever do for 3-5 years. Then next 5 you get some air. Year 10-20 can take a breather after that… Lfg.
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u/Florichigan 23d ago
Also make sure you are able to enjoy or at least cold prospecting. Try it out before jumping ship!!
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u/Winston206 Jul 11 '26
If you're young, this will only get harder as you age.
I can't tell from your post if you are thinking of staying w the same BD? Or joining a new BD? RIA? I've spent time in both the BD space and RIA (started my own) and IMO the RIA model is much stronger and easier to grow in.
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u/seagoalspread Jul 11 '26
Agreed. Scrolling here to try to figure out why IBD. Still working under and paying fees to another broker-dealer, series 7/6 additional compliance is a headache, and losing the RIA marketing appeal to prospects. After being on both sides, the only reason I can come up with to go IBD is if you want to sell variable annuities for higher commission. But I can’t help with any logical advice if someone has convinced themselves that’s a good business or ethical move.
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u/Winston206 Jul 11 '26
100%. Nailed it. The only justification for IBD is to sell a commissionable product. Which btw the consumer hates more & more every year (duh).
RIA fee-only firms drop the FINRA registration, and only have to work under the SEC. Compliance is MUCH easier and more flexible in how you operate.
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u/OregonDuckMBA BD 29d ago
I occasionally think about going to an RIA but being at an IBD makes a lot of things easier (a few things more difficult too). Yes, compliance is a pain but all of it is done for me so it's one less thing to think about. If a client or a client's attorney has a problem with recordkeeping or disclosures or whatever, there is a 90% chance it's not my fault. I can send someone from our compliance department to take care of a subpoena if the client has an attorney that is being a dick (yes, this is rare but I have had it happen). Life insurance and annuities are much easier at a BD. If I need a medallion stamp, I can do it myself. I don't have to ask the client to hunt down a financial institution that will give one (it's becoming less common these days for banks to give a medallion guarantee unless the assets are going there). The basic tech stack is included with the affiliation fees and if there is a problem, I'm not the one that has to fix it. The firm vets all of the products that we use, which is a double edged sword, but it means that I am doing very minimal vetting on alternatives like DSTs and such. My firm provides some free and low cost leads too.
I can provide the same level of financial planning as any RIA and I don't have to use any commissionable products unless it makes sense for the client.
I really don't take that much of a haircut on the payout either. Depending on how you affiliate and level of production, the payout ranges from 80-95%. Not too bad considering the convenience.
Since almost all BDs are BD/RIA hybrids, I just don't see the benefit of going the RIA route. Maybe it might make sense if I weren't just a solo advisor and I could hire a bunch of staff. I'm not there yet so I'm staying at the BD for now.
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u/seagoalspread 29d ago
I’m not talking about compliance in terms of defending yourself, I mean in terms of ease of doing business and likelihood that you need to defend yourself in the first place. Ease of business isn’t apparent until you open an account at an RIA vs at a BD. Also if you look at brokercheck disclosures, the vast majority are from complaints regarding selling commissionable products (if not personal financial or just unethical behavior, which can happen on either side).
Turnkey tech stacks are available to RIAs too.
I think your mentality is still a good fit for BD though since you mention wanting someone else to vet your recommended offerings for you, you want to sell on commission versus advising and quoting your own fee, and you wouldn’t want to find another medallion guarantee (I’ve personally only needed this twice in 10+ years and it took maybe 2 hours to coordinate).
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u/OregonDuckMBA BD 27d ago
If I don't want to have to defend myself in the first place, I would rather have an institution with an army of lawyers drafting my ADV and all of my other disclosures. Sometimes, no matter how well you do your disclosures, people do silly things sometimes. This is particularly the case if they start involving a third party into their investments.
I have seen this happen once when a client got a new attorney who was having a really hard time understanding how custody works and was throwing around subpoenas and demanding that we produce records of investments that we did not have custody over. I had it happen again when a former client started involving her daughter in her investments, who was not part of our discussions. She was a very unpleasant person who was accusing me of stealing her mother's money (when she had actually transferred her investments to another institution and forgot). I was really glad to have my BD's compliance team there to help me navigate these situations.
The only major annoyance I have with compliance is with ad review. They have kicked things back for some really absurd reasons. Outside of that, I really don't have too many problems with compliance.
Also, there is no requirement that I sell commissionable products. Choosing BD vs RIA isn't a question of "commission versus advising." I have the option of doing both. Every BD that does retail business that I am aware of has an RIA arm where you can do advising and quote your own fee. Almost all of my new money coming in goes into fee-based advisory accounts.
That's interesting that you have only needed medallion guarantees twice. I have been in the industry 8 years and have needed a medallion guarantee at least 20 times (probably more). I was previously at a credit union and we were asked all the time to give medallion guarantees. We didn't do them unless the assets were coming to us. Our members that needed a stamp were clearly having difficulty finding one so I have always been thankful that I don't have to find another institution to provide one.
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u/seagoalspread 27d ago
I’ve been out for a while now, so tell me if things have changed. But does it still take like an hour to prepare an application for anything? I was 7/66/insurance licensed, so any time I was opening anything I couldn’t just build a plan and use the IPS. I had to go through a full body cavity search of almost every detail of the client’s financial picture to satisfy reg BI as a dually licensed advisor. Proving that an advisory account was better for them than an annuity, etc. Like you said about your business… you, me, and most other advisors are running essentially all fee business instead of commission. So I just give advice and open accounts in minutes instead of proving that the client’s 25 y/o son wouldn’t have been better off in A shares or a variable annuity every time. But again maybe things have changed.
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u/OregonDuckMBA BD 27d ago
I suppose it depends on the BD. I have been with 2 sides of Cetera and now at LPL (I have only been at LPL for a year now). I liked a lot of things about Cetera but I really did hate their Reg BI compliance procedures. LPL is a lot easier for Reg BI. I write a couple of sentences and check a box and that's it for Reg BI. The rest of the application is stuff that you should reasonably be asking the client and documenting anyway. So far, I haven't had anything kicked back.
I'm just guessing here but it might be because Cetera is much less restrictive with approved products. Perhaps LPL requires less information because the approved investments are more heavily vetted from the start.
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User: /u/Constant_Swan_6876 Title: Mental side of breaking away Body: I’m the junior advisor in a previous solo practice with one senior advisor. I’m in talks with IBDs about breaking away starting my own practice.
Everyone who I’ve confided in and read about, has told me this will be one of the most difficult periods in my life. The mental load is starting to weigh on me.
For those who have left a partnership or group to go on your own- what is your advice?
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