Get Acquired or Get Fired

hunter shutterstock_228676159

Small firms are getting shot, and big firms want predictability.

We are in the midst of a massive restructuring of U.S. Wealth Management, and whether you work for a firm of thousands or hundreds, your firm’s division or part of your division will be acquired, or massively changed, in the next 24 months. Get in front of it and control your destiny.

Build Wealth

No one ever got rich on income, and the manner in which forgivable loans are structured point toward indentured servitude unless structured uniquely. If you believe that firms, both large and small, are either going to off load their divisions or force you into product, then you’ll want to get ahead of the trend and make sure that you have ownership interest in your next venture. There may be nothing you can do about firms pushing you toward plain vanilla managed money, but having a stake in the game is one sure way to build wealth. Both hybrids and independence offer interesting roads.

A Stake in Something Bigger

If you feel that you can tough it out at a bigger firm, it is time to start steering the ship by diversifying your income within these big boats. You simply do not want to get a call one day saying that a substantial portion of your business is now being outsourced or phased out, as is the case with complex products within retirement vehicles. That means getting involved in building a division, sitting on a comp committee, or building a multi-layered strategy that allows for your expertise with younger brokers involved in large bake-offs. Big firms are looking for ways to add more simplicity to their wealth management divisions, and the more tailored your practice is, the more they will be looking to blow up your book.

Vision it Out

Take an honest look at where your firm will be in three years. First question is, where is the growth? In this business, firms either grow or die. If no one is joining your firm, then the growth will be selling the entire division. Many Advisors were blind sided by the events of 2015. Get in front of the trends that are clearly apparent in your firm’s division.