Independence 101

The feeling of true independence is indescribable and can only be fully appreciated once you are here. Pride of ownership, autonomy, and the ability to provide objective recommendations to clients are resounding reasons advisors find independence so rewarding.

Overview
Myth One
Myth Two
Myth Three
Myth Four
Myth Five
Your Vision of Independence

Overview

​The feeling of true independence is indescribable and can only be fully appreciated once you are here. Pride of ownership, autonomy, and the ability to provide objective recommendations to clients are resounding reasons advisors find independence so rewarding.

We frequently hear from advisors however that independence and all the control and freedom associated with the move just doesn’t “feel” right for them. While in some instances such a move is indeed not right, in most cases the reality is that there are several myths that prevent some advisors from making the move. We aim to present the facts — facts learned from our own trials and tribulations — about the realities of going independent.

Where can your business go? It’s time to find out.

one

There are hidden costs of independence, right?

When wirehouse advisors kick the tires on independence, the allure of the potential “90% payout” is quite strong. But the first instinct is often, “what’s the catch? There have to be hidden costs I don’t know about. I won’t actually earn 90%, right?”

If you’re coming from a wirehouse, it’s quite natural to have that reaction. After all, with constantly changing comp programs and grid payouts that seem to always work against you, it’s expected that you would think there are several “gotchas” to uncover.

The reality is that 90% payouts are in fact achievable at an RIA. Going independent gives you the freedom to manage your own P&L and lean into being a true entrepreneur and business owner to allocate resources to what your business needs most. Plus, you own your business, so every new client you bring on board increase the equity value of your firm.

Of course, while the higher payout is nice, most advisors will tell you that it is the quality of life that is the best part of being independent.

Ways to Affiliate

Every advisor in our partnership owns their book of business. Each practice enjoys all the tax benefits that independent business owners receive and our leadership team will help identify ways to minimize taxes and maximize profitability. In our model, you can decide how you want to affiliate your practice with our RIA. Some of us thrive in a branch style environment while others prefer autonomy and structured opportunities for collaboration. Our programs provide varying levels of support with the complexities of running your office and business to the degree you are comfortable with, freeing you up to focus on what you do best – caring for your clients. We’ll work with you to find the right blend of payout and convenience that makes sense for where you are today and where you want to be.

two

Compliance is going to be restrictive & expensive

The compliance and regulatory burdens at your current firm could very well be the main reason you’re seeking to make a change and join an independent RIA. On one hand, if you’re currently seated at a wirehouse or independent broker dealer, compliance is managed for you. On the other hand, the compliance function at your firm isn’t customized to you and your business — it is managed to the lowest common denominator approach, overseeing all advisors. So regardless of how many years of experience you may have or the state of your own record, you’re treated the same as a brand new advisor just starting out.

Compliance Solutions

At NewEdge Advisors, compliance works with you, not against you. Our compliance program doesn’t cater to the lowest common denominator. The experienced Compliance team at NewEdge Advisors provides sophisticated compliance oversight to ensure all practices are operating under the most up-to-date federal and state regulatory requirements. Our program is designed to be thoughtful, consultative, and collaborative. We work with you and your individual needs and how you want to run your independent business.

three

Technology will be lacking

The wirehouses certainly have the resources to throw at building proprietary technologies for their legions of advisors. But spending more money doesn’t always equate to better solutions. Plus, how often are you able to customize your tech stack around how you run your business? Instead, most firms require you to take their restrictive work station "as is" with limited or scaled-down integration of any third-party tools.

Today’s modern FIN-Tech is opening the door for independent RIAs to find new and different ways to drive growth, build efficiencies in their practice and engage in a more meaningful way with clients.

Open Architecture Tech Stack

NewEdge Advisors utilizes an open-architecture technology platform allowing you to customize the tech stack that’s best for your practice. This includes access to Orion an industry-leading portfolio management solution for account aggregation, reporting, trading and rebalancing,  a unified client portal, and much more.

Additionally, our platform gives you the freedom to choose your add-on tools. You’ll have countless options to select from across top providers in the industry - whether that’s CRM and Financial Planning tools, risk & stress testing solutions, research and analytic tools, and many more.

Throughout the entire technology discovery and implementation process, you’re not alone. Our Advisor Tech team will consult with each advisor team to help them choose the right solutions for their practice and assist with technology setup and training, integration, and ongoing support.

Being an RIA allows you to leverage the best technology in the industry. You are not captive to your firm’s budget and can benefit from the competitive FIN tech marketplace to build the best tech stack for you and your clients.

four

Transitioning to independence is a nightmare

While we can’t promise you that switching to independence will be easy, you can rest assured that you’ll have unparalleled support from our experienced leadership team and dedicated transition team, as well as the opportunity for peer-to-peer collaboration with like-minded advisors working together to solve business challenges.

From guiding you through a discreet and meticulously organized transition, to providing technology and investment choices that allow you to better serve your clients, we’ve got you covered.

NewEdge Advisors understands that when transitioning your practice, you need a partner focused on one thing, your success. From day one, you are assigned a dedicated team that has successfully helped many advisors make the move by following a proven approach.

We take time to understand your practice and current book of business. The team is comprised of skilled specialists who will review our processes with you and your team. We are confident your transition team will create a seamless transition to NewEdge Advisors.

five

I can eliminate all investment conflicts

Flexible Investment Platform

A flexible, low-cost, customizable UMA platform with access to multiple managers, and on-staff CFAs for even greater customization

Investment

A flexible, low-cost, & customizable UMA investment platform

  • Our Mission: Level the cost for advisors to manage assets themselves or outsource portfolio management to our team
  • Program Highlights: Flexible, customizable UMA platform, including Stocks, Bonds, Funds, ETFs, tax harvesting, & account mapping
  • Multiple Managers: Active, Passive, ETF, Mutual Fund, Stock, Bond, Momentum, Relative Strength, Sector, Fixed Income, & NewEdge Portfolios
  • CFA Customization: On-staff CFAs for additional levels of customization

We have attempted to levelize the cost for advisors to manage assets themselves or outsource portfolio management to our team. Our Investment Program provides a flexible, low-cost, customizable UMA investment solution. Spend more time on financial planning, reduce your workload, and increase efficiency and outcomes at just a fraction of industry costs…or at no additional cost at all.

Create Your Own Vision for Independence