What W-2 Advisors Miss When They Go Independent
One of the most common misconceptions I run into is the idea that once an advisor breaks away from a W-2 setup, the journey is over. The irony is that more often than not, they will almost certainly move again within 5-7 years.
I’ve had this conversation with dozens of advisors (especially those leaving big names like Edward Jones, Merrill, or Wells), and here’s what I’ve seen play out.
Why the First Move Isn’t Always the Final One
There’s nothing wrong with needing help in the beginning. The transition into independence comes with real friction:
Finding office space
Hiring or retaining a team
Learning new tech
Handling compliance
Building brand presence from scratch
It’s a lot, and it’s natural to want support. Even still, I would argue that I’ve consistently felt that newly minted independent advisors overpay a lot for that support simply because they didn’t feel ready to build alone.
60% payout.
All-inclusive platforms.
Fully bundled service models.
It gives the illusion of simplicity… until you talk to peers, go to conferences, and start realizing what things should cost. That’s when the second transition starts creeping into view.
When Advisors Outgrow Their First Independent Home
The pattern is pretty consistent.
You go independent → you take the training wheels off → you get your bearings → you start comparing notes → and then you realize:
“I’m running a real business now… but I’m still on someone else’s system.”
That’s the moment where optionality becomes a serious priority, and that’s where an independent recruiter like me tends to add the most value. Now that you know what you’re looking for, it can still feel like an enormous lift to actually find the right fit.
I’m not just helping advisors go independent for the first time. I’m helping them figure out whether the setup they picked out of fear or if they’d choose now that they’ve got their sea legs.
What I Tell Advisors Making the First Move
If you’re on the verge of going independent, here’s what I’d say:
Don’t mortgage your future just to avoid friction. If you’re entrepreneurial, you can do it. You likely just need a few key voices to help point you in the right direction.
Don’t give up too much payout just because you're nervous about space or staffing.
Don’t assume the platform that sounds safe is the one that will still serve you in five years.
It’s okay to accept help. It’s okay to prioritize service and simplicity up front. Just make sure you build in freedom and flexibility to pivot down the road. You’ll grow and you’ll evolve, and what serves you best today might be too small for the vision in a few years. That’s normal, and more so, healthy.
Final Thought
Going independent is a powerful first step, but it’s not always the last one. Give yourself room to grow and set things up in a way that lets you move again if you need to. Don’t over-mortgage your future optionality for today’s support.
If you want help evaluating your next move, whether it’s your first or your second, I’m happy to walk through it with you.