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5 Key Tools for Breakaway Advisors

5 Key Tools for Breakaway Advisors

If you're a financial advisor considering starting an independent advisory firm, you've likely heard the term "breakaway advisor." A breakaway advisor is an independent financial advisor who leaves a larger financial institution to establish their own practice.

When surveyed in a 2020 Breakaway study, most advisors who’ve gone independent say it was worth it. But as rewarding as going independent can be, becoming a breakaway advisor can be complex and overwhelming without the right tools and support. In this post, we tap into our experience in helping breakaway advisors succeed in order to highlight some key considerations that advisors should be aware of as they plot their path to independence.

From bulk transfers to digital ACATS to portfolio management tools – having a plan for these crucial aspects of your business is critical to finding success as a newly independent advisor. Let’s examine five important aspects of managing your transition. Let’s examine five important aspects of managing your transition.

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1. Bulk Transfers

When becoming a breakaway advisor, one of the critical considerations is how to transition your client's assets from your current brokerage firm to your new practice. This is where bulk transfers come in.

A bulk transfer is a process for moving large numbers of client accounts from one financial institution to another. This can be a complex process, but it's essential in establishing your new practice and building strong relationships with your clients.

To execute a successful bulk transfer, you must consider timing, client communication, and regulatory compliance.

2. Digital Account Management

Managing client accounts electronically has become an increasingly important feature for clients. Digital account management can help breakaway advisors establish their new practice and streamline their operations, allowing them to focus more time on providing high-quality financial planning services and less on paperwork.

At Altruist, fully digital account opening and lightning-fast ACATS mean you can open accounts in minutes.

3. Digital ACATS

Another important consideration when becoming a breakaway advisor is transferring your clients' assets from your current brokerage firm to your new practice. While bulk transfers can be effective for moving large numbers of client accounts, digital ACATS transfers can efficiently and securely transfer individual client accounts.

Automated Customer Account Transfer Service (ACATS) is a system that allows for the electronic transfer of client accounts between financial institutions. The ACATS process can be complex, but it's essential to establishing your new practice and ensuring your client's assets are transferred securely.

4. Practice Management Tools

Managing a successful financial planning practice requires careful planning, organization, and attention to detail. Practice management tools can help breakaway advisors streamline their operations and build a more efficient and profitable practice.

Using practice management tools, breakaway advisors can save time and focus on what they do best - providing high-quality financial planning services to their clients. Our integrated fee billing and reporting software is designed to be user-friendly and intuitive, allowing transitioning advisors to manage their practice and stay organized easily.

5. Portfolio Management Tools

Managing client portfolios is a critical component of any financial planning practice. Portfolio management tools can help breakaway advisors build diversified and profitable portfolios aligning with their client's financial goals and risk tolerance.

Altruist offers a range of portfolio management tools designed specifically for independent financial advisors. With a model marketplace that provides access to over 350 pre-built models, commission-free fractional share trading, and intuitive portfolio customization software, it’s easy to deliver personalization at scale.
Starting an independent practice – the bottom line

Becoming a breakaway advisor has challenges, but most advisors who jump say it’s ultimately a rewarding experience. In considering leaving a larger financial institution and establishing your own practice, carefully planning your transition to independence is vital. 

Taking advantage of the technology and transition solutions offered by a modern custodian like Altruist will make this process smoother and improve outcomes for your clients and your future business. 

If you're ready to take the leap, we're here to help. Contact us today to learn how Altruist can support you to become a successful breakaway advisor.


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