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What is a breakaway advisor?

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. 

As rewarding as going independent can be, becoming a breakaway advisor can be complex and overwhelming without the right tools and support. 

So we're going to tap into our experience in helping breakaway advisors succeed and provide you with a comprehensive overview of what to think about when you're starting an independent practice and how to navigate the key topics that are critical to your success, such as bulk transfers, digital account management, digital ACATS, practice management tools, and portfolio management tools.

Our goal is to empower you to make informed decisions about your future, providing you with the tools and support you need to build a successful, independent brokerage firm that delivers value to your clients.

What is a Breakaway Advisor?

As mentioned in the previous section, a breakaway advisor is an independent financial advisor who leaves a larger financial institution, like Merrill Lynch or Edward Jones for example, to establish their own firm. This can be a significant decision, but it can lead to greater control over your practice, a stronger client experience, and more flexibility in your approach to financial planning.

If you're considering becoming a breakaway advisor, it's essential to consider your goals and assess the risks and benefits carefully. Starting an independent advisory firm can be a rewarding experience, but it requires careful planning and preparation.

Bulk Transfers

One of the critical considerations when becoming a breakaway advisor 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.

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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.

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.

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.

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.

Our firm 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 can be a challenging and rewarding experience. By leaving a larger financial institution and establishing your practice, you can enjoy greater control over your practice, build a better client experience, and create a more personalized and flexible approach to financial planning.

We encourage you to explore your options and consider the benefits of starting an independent practice. If you're ready to leap, we're here to help. Contact us today to learn how we can support you on your journey to becoming a successful breakaway advisor.

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