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Its Never Too Late To Change Firms

After 40 Years, an Advisor Finds a Firm That’s a Great Fit

Many advisors reach a point in their careers when they believe they’re too old to make a move. Especially when you’ve worked at a firm for many years and have gotten comfortable, the momentum can be difficult to overcome. However, it’s never too late to rule out a career transition, as the benefits of making a move can be significant.

Recently, Michael King interviewed a long-time client he had helped transition to a new firm late in his career. Following is what “David” had to say. (Due to the confidential nature of this conversation, the advisor’s name has been changed.)

Michael: Hello, my friend! It’s been a while since we’ve touched base. How are things at the new firm?

David: Things are going well, Michael! I’m all settled into my office here in New York and all is well.

Michael: Great to hear! Will you please give our readers some information about your experience as a financial advisor and why you decided to make a move late in your career?

David: As you know, Michael, I’ve been in this business for a long time. I started as a financial advisor back in 1981, but I discovered my love of investing when I was just 10 years old and purchased my first stock. I guess you can say I’ve been hooked ever since.

If you remember, you helped me make my first career move back in 1983. After I had completed my training program and worked for a couple of years at my first firm, you found me a great position at a well-known investment bank.

Michael: Of course, I remember. Your business really took off in the years you were there. As I recall, your compensation grew exponentially.

David: It did. It was a great place to cut my teeth, so to speak.

Michael: What came next in your career?

David: After a few years, I was offered a position at one of the best private banks in the world. The job was to establish a New York office, and on paper, the offer was fantastic. I decided to take the position without first talking to you, Michael. Big mistake! Soon after I got there, I realized it was a horrible fit. The promises the hiring manager had made didn’t pan out, and I was miserable.

Once I realized my mistake, I reached out to you and you found me a great position in the private client services department of one of the nation’s largest banks, which I thrived in for 14 years. After that experience, my wife made me promise that I would never again make a career move without first talking to you. I learned my lesson for sure!

Michael: That’s right. I remember how upset your wife was that you didn’t talk to me about that move. Fortunately, you found a great fit at the bank, built great relationships and were supported by all the resources you needed to help your clients succeed. What made you consider a move after 14 years there?

David: Over time, the private client services department became a smaller contributor to the bank’s bottom line. That meant we weren’t a priority when compared to other divisions. This became a challenge for me in providing my high-net-worth clients with the level of service and support they deserved.

Michael: That’s about the time your friend and former mentor reached out to me, correct?

David: Yes. He had left the bank a few months prior to run the wealth management division at another firm, and he wanted to bring me along. However, due to a non-complete he had signed, he couldn’t contact me directly. So, he did smartest possible thing and reached out to you.

Michael: That’s right. We worked to negotiate a great compensation package, and you’ve been there for about three months now. How’s it going?

David: It’s fantastic! Better than I could have hoped. I’m in a position where I can contribute significantly to the firm’s bottom line, which means I can support my clients with virtually unlimited resources. My clients are thriving, and so am I. You negotiated an amazing deal, and I could not be happier. As much as I hate to admit it, my wife was correct in insisting that I not make a move before consulting with you.

Michael: Well, I for one think that’s great advice! What other advice would you give an advisor who is considering making a move.

David: Firm culture is so important. I’ve learned that in the middle of negotiations, it can be difficult to asses whether or not a firm is a good fit. Michael, aside from the compensation piece, I think the biggest value you bring to the table is your experience and understanding of each firm’s culture and approach. You’ve always been able to guide me toward firms that share my goals and are supportive of my unique approach to serving clients. That’s a really important piece of the puzzle that I would not trust anyone but you to handle.

Michael: I’m thrilled to hear you say that. I agree that a cultural fit is one of the most important considerations, and I’m glad I’ve been able to find that for you a few times throughout your career. Thank you for taking the time to speak with me today. I’m so happy things are going well at your new firm.

David: Always glad to help out a friend, Michael. Let’s get together soon!

At Michael King Associates, we have decades of experience helping advisors navigate the various challenges of moving firms. Before you make a move, contact us for guidance. We can help you evaluate all your options and maximize your deal. That’s why we call ourselves the “MATCHMAKERS.”

For more information about how we can help you negotiate the best possible transition package, please contact Michael directly at michael@michaelking.com, call the office at 212-687-5490 or call or text

Michael’s cell at 917-747-4805. Remember, whatever we discuss is TOTALLY CONFIDENTIAL. Also be aware that the firms pay our fees, you pay NOTHING!! Our firm has been around for a long time because we keep our word. At Michael King Associates, we specialize in helping advisors find their ideal place and achieve their best career path. We are your go-to “MATCHMAKERS!”

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Advisor Perspectives – An Interview with Recently Transitioned Advisors

How Michael King Associates Can Help You Take the Next Step in Your Career

If you’re considering making a professional move to another firm, the options can be overwhelming. Where do you even begin? Of course, we believe the best first step is to partner with a qualified professional who can make introductions, negotiate the best deal and help ensure the right fit. But don’t take out word for it…

Recently, Michael King touched based with two advisors he had helped transition to a new firm to learn how things are going. Here’s what “James” and “Carl” had to say. (Due to the confidential nature of this conversation, the advisors’ names have been changed.)

Michael: James and Carl, it’s great to speak with you again. How are things going at your new firm?

James: Things are great, Michael! We found a great fit and have been able to significantly grow our business since making the move.

Michael: I’m so glad to hear things are going well. For the sake of this blog post, can you tell us a about why you wanted to make a move?

James: Of course! We have a bit of a unique niche within the advisory world in that we identify and source early-stage medical technology and pharmaceutical companies and fund them through a network of high-net-worth investors. We wanted more independence and a bigger challenge than what we had at our previous firm. It was very important that we continue to have opportunities to bring in our own deal flow, while also having access to additional deal flow through the firm. We needed to find the right combination of independence and support, which was a difficult balancing act to achieve. We just didn’t know where to start.

Michael: And how did working with us help you find that starting point?

Carl: I think it was your connections that really got the ball rolling. Even though we’re not your typical fee-based financial advisors, you were able to reach out to your vast network to identify several firms that would have been good partners for us. It was incredibly important to us to have options instead of signing on with the first firm that came along, and that’s exactly what you provided.

Michael: Yes, I’m so glad we were able to identify a few different firms to negotiate with. What was the deciding factor that made you choose your current firm?

James: Ultimately, it was the people. Wethink you found us a really good fit personality wise. We wanted a reliable team to support our efforts while allowing us to do what we do best, and we found that fit at our new firm.

Michael: Tell us a little about the negotiation process. Do you feel like you got the best possible deal?

James: Absolutely! In fact, at one point, Carl and I were both happy with where we were in the negotiations, and you were actually able to enhance the deal even more. We were not aware that an accelerated payout in the first six months was even an option until you brought it to the table.We were extremely well compensated for the business we transitioned with us, thanks to you negotiating that benefit. We also received a transition bonus, which is not something we would have thought to ask for. You definitely helped us get a better deal, Michael!

Michael: That’s my job, James! I’m glad it worked out. What other challenges did you face in your search for a new firm?

Carl: Probably the biggest challenge was COVID. Most people were still working from home, so it was impossible to meet face to face. Although James is in New York, I’m located in Florida, so I’m already a bit disconnected from Wall Street, but COVID made it even more difficult to know what was going on. If it weren’t for your connections and the pulse you maintain on what’s happening in the industry, we wouldn’t have known where to start.

Michael: COVID was challenging for all of us, that’s for sure! What advice would you give to another advisor who is considering a move?

James: Hire a recruiter… hire Michael King! Seriously, though. It was immensely helpful. We started the process on our own and we were all over the place. We talked to several firms, but it just never felt right. When we finally wised up and contactedyou, Michael, you were able to immediately narrow down our search and find us great firms that shared our vision and goals. I really wish we had called you the moment we decided to start our search, rather than wasting our time trying to do it on our own.

Carl: Another piece of advice I learned from you is to NEVER say yes to any deal until you’ve talked to your recruiter. As James mentioned earlier, we thought we had a great deal with our current firm, but you were able to make it even better. We’re so glad we relied on you to handle the negotiation because we just didn’t know what we didn’t know.

Michael: One thing I would add to that is the importance of getting it in writing. Never agree to a deal verbally because it just won’t hold up down the road.

James: Yes, for sure! You taught us that as well, and as a result, we have everything in writing in case we ever have a disagreement.

Michael: That’s so important! James and Carl, thank you both for sitting down with me today. I’m so glad your transition has gone well and that you’re happy at your new firm.

Carl: Thank you, Michael. You know we’rehappy to be references for you if you ever need it!

At Michael King Associates, we have decades of experience helping advisors navigate the various challenges of moving firms. Before you make a move, contact us for guidance. We can help you evaluate all your options and maximize your deal. That’s why we call ourselves the “MATCHMAKERS.”

For more information about how we can help you negotiate the best possible transition package, please contact me directly at michael@michaelking.com, call the office at 212-687-5490 or call or text me on my cell at 917-747-4805. Remember, whatever we discuss is TOTALLY CONFIDENTIAL. Also be aware that the firms pay our fees, you pay NOTHING!! Our firm has been around for a long time because we keep our word. At Michael King Associates, we specialize in helping advisors find their ideal place and achieve their best career path. We are your go-to “MATCHMAKERS!”

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Considering Breaking Away from a Wirehouse?

The Pros and Cons of Going Independent

Considering breaking away from a wirehouse to go independent? It’s a big move and a big decision. If you have an entrepreneurial spirit and the desire to run your own business, it may be a risk worth taking. Following are the pros and cons of going independent.
Pros

  • Freedom to serve the clients you want in a way you see fit – As an independent advisor, you have control over what clients you serve and how you serve them. If you’ve always dreamed of serving a specific niche clientele, such as professional athletes, physicians or next gen clients, going independent can provide you with the freedom to do so. If you decide later to switch focus, you’ll easily be able to do so as an independent advisor.
  • Ownership – If you’ve always had an entrepreneurial spirit, going independent can be a great opportunity to build your own business. As an independent advisor, you can establish a business model and fee schedules that meet the needs of your clients while compensating you appropriately as your business grows.
  • Flexibility – There are several different opportunities for going independent such as starting your own practice, joining an independent firm or building an enterprise. You’ll also have the flexibility to decide whether you will practice as a fee-only advisor under an RIA model or as a dual registrant who engages in both commission- and fee-based business.
  • Control Over Investments – If you feel stifled by some wirehouse’s proprietary fund requirements, you may welcome the change to an independent model where you are able to provide an open architecture approach to asset allocation. It can be incredibly rewarding to have discretionary control over your clients’ assets and the freedom to develop custom solutions that incorporate a wide universe of investment solutions.
Cons
  • Loss Of  Back-office And Facilities Support – One of the biggest challenges faced by advisors who go independent is establishing back-office functions such as operations, reporting, compliance, employee benefits, fee schedules and billing, service menus, IT support, office leasing/purchasing, facilities management and more.

Possible help – Be aware that there are firms geared toward independent advisors who will help with this.

  • Loss Of Brand And Name Recognition – By going independent, you will give up the name recognition and marketing resources of a larger firm. While this might not be a problem if you have an established book of business that will follow you, it can make winning new clients more challenging.

Possible help – Financial advisors often use the name of their clearing firm to give comfort and a sense of security to their clients.

  • Start-up Costs – Be ready for significant start-up costs when starting your own firm, such as computers and supplies, office space, planning and investment research software, rent and utilities, and employee salaries and benefits.

Possible help – A number of firms will give you money either as a forgivable loan or to be repaid at a later date.

  • Fewer Investment Resources – Leaving a large, established firm means that you will also be leaving its investment support, such as research analysts and investment software. You’ll need to establish a trading platform and your own investment process/philosophy while also conducting due diligence on any investments you include in client portfolios.

Possible help – Many independent clearing firms offer a wide range of investment opportunities with open architecture you may not have had at your previous firm.

On a positive note, if you have dreams of going independent, there are firms that can support you with wealth management and technology platforms, investment research capabilities, and more. This approach is often referred to as supported independence because you have the freedom to make decisions for your firm while also gaining access to resources similar to those of much larger firms.

If you’d like help navigating your transition to independence, or for any other career guidance, please email me at michael@michaelking.com, call the office at 212-687-5490 or call or text me at 917-747-4805. At Michael King Associates, we specialize in helping advisors find their ideal career. We are your go-to “MATCHMAKERS!”