The Diamond Podcast for Financial Advisors

How do advisors who move to independence overcome their concerns about making the leap? Many advisors considering a move to independence don’t have access to peers who actually made the leap and will candidly describe their journey and experiences. If that’s the case, you’re often left wondering if all you hear or read about is “the real deal”— or just more hype and headline than reality. In this episode, Mindy interviews “the real deal”—an advisor who left the safety of a traditional firm for the greater freedom and flexibility offered by the Independent Broker Dealer model. Tim Adams from The Princeton Group in Yardley, PA joins Mindy to discuss his firsthand experiences in making the move to independence. You’ll find that his journey is much like many others: The former Smith Barney advisor found himself growing increasingly frustrated with his firm and knew he could do better for his clients and his career. After careful exploration, he along with his wife and partner, Donna Sabb, made the leap to Wells Fargo FiNet—a move far less common in 2009 than it is today. Tim allowed his mantra, “Trust in yourself” to guide his successful transition and today they continue to grow through both organic and inorganic growth. Tim shares how he overcame the perceived obstacles of a move to independence, answering the questions so many advisors ask, including: * Will my clients move with me if I go independent? * Do I need a brand name firm? * How difficult and risky is the move to independence—really? Tim’s excitement is palpable as he addresses these questions and more. It’s a great opportunity to fill in some knowledge gaps in your own exploration of the independent space by learning from someone who actually made the move.   Related Resources Can Only the Biggest Firms Serve the Biggest Clients? The biggest firms aren’t always the best choice. Read-> Follow Me: 5 Steps to Retaining Your Clients During a Move Before changing firms, take the time to evaluate your relationships with your clients. Read-> How to answer when clients ask, “What’s in it for us?” A move to the independent space can benefit both advisors and clients. Read->   About Tim Adams: Located in Yardley, PA, Tim Adams has more than 20 years of experience in the financial services industry and is a trusted advisor whom clients consult with on a range of financial and life decisions. Tim started his career as a counselor and mediator in social work and later joined Smith Barney, a predecessor firm of Merrill Lynch, as a Financial Advisor. By his nature as an empathetic listener and problem-solver, he is a versatile counselor – whether addressing clients’ individual or family’s personal financial needs, and those of a family foundation or endowment; or crafting business policy for a small business; or providing insight on the particulars of ERISA or Taft-Hartley retirement plans. Tim is a Certified Investment Management Analyst®, a designation earned following a course of study at the Wharton School of Business and conferred by the Investment Management Consultants Asso...

The Bigger Picture for Independent Advisors: How to Monetize Your Life’s Work in the Long-Term

While the freedom and flexibility of the independent space is attractive to many, it’s the long-term economic potential that’s the real draw for entrepreneurial-minded advisors. An expanded landscape has paved the way for breakaway advisors to monetize their businesses in the short-term, with a growing number of ways to fund a start-up, de-risk a move, and replace lost unvested deferred comp. For those with their sights set on longer-term goals, the potential has become even greater. As the delta between taking a recruiting deal versus building an independent enterprise diminishes, more advisors are taking the leap than ever before. And M&A in the space has never been more active. What’s behind the massive growth of the space? What’s the real long-term potential for advisors considering a leap to independence? In this episode, Mindy has invited Louis Diamond, Executive Vice President at Diamond Consultants, to share his experience in counseling breakaway advisors and facilitating M&A deals for independent business owners. Together they discuss: * The 6 drivers behind the M&A boon * The 8 factors that determine a firm’s valuation * Standalone RIAs who are actively recruiting * Private equity-backed rollups acquiring, or buying equity in, smaller RIAs   Related Resources The Math Behind the Move to Independence How the long-term economics of the independent space compare to taking an upfront check from a traditional firm. Read-> How much is my house worth? The 7 key drivers that determine the enterprise value of independent firms. Read-> What got you here, won’t necessarily get you there (part 1) and (part 2) A 2-part series exploring how independent firm owners can enhance their firm’s enterprise value. Read Part 1-> or Read Part 2->   This podcast is also available on...                          Browse other episodes in this podcast series...

What Non-Protocol Status Means for Those Considering Independence

A discussion about the effects of Protocol withdrawal with Sharron Ash, Chief Litigation Counsel at Hamburger Law Firm The withdrawal of Morgan Stanley and UBS from the Protocol for Broker Recruiting sent shockwaves through the industry, as experts and advisors alike wondered what the effects would be on recruiting and transitions. And the bigger question on most everyone's mind is how going independent will be impacted by an advisor's non-Protocol status. As with any major change in the industry, rumor and innuendo often dominate the conversation. To help separate fact from fiction, Sharron Ash, Chief Litigation Counsel at Hamburger Law Firm, joins Mindy Diamond on this special episode. They discuss the Protocol, and how advisors can protect themselves, as well as: * The legal ramifications of firms leaving the Protocol, and how it affects advisors. * Whether advisors at non-Protocol firms are automatically “stuck” there (hint: they’re not). * If any advisors have managed to leave Morgan Stanley or UBS without being slapped with a lawsuit or a Temporary Restraining Order (TRO). * Some strategies advisors should take to protect themselves—even if they’re not planning to move. A key point they share with listeners: The reality is that even without the protection of the Protocol, advisors have options.   Related Resources Protocol or Not: 7 Steps for Financial Advisors An Infographic detailing the steps that advisors should be taking, even if they’re not planning a move. Read-> Exiting the Protocol: What does it mean for Advisors? As fiduciaries, advisors will continue to do what’s right for the clients, even without the Protocol. Read-> Risk vs. Reward: Why Non-Protocol Teams are Taking a Giant Leap to Independence Even without the protection of Protocol, some non-Protocol teams are still willing to take the risks and make the move to independence. Read->   About Sharron Ash: As Chief Litigation Counsel at the Hamburger Law Firm, Sharron is involved with all aspects of the firm’s employment transition, commercial, employment and regulatory dispute matters. Sharron is primarily engaged in employment counseling to financial advisers interested in opening their own independent firms or transitioning between firms, as well as those facing involuntary terminations. She provides invaluable counsel to advisers identifying risks related to such moves, as well as providing representation based on the firm’s deep bench of experience in related disputes. Sharron has significant experience with defending restrictive covenants common to the securities industry and the temporary restraining orders and preliminary injunctions that are used to enforce them. Sharron has practiced extensively in state and federal courts across the country. She is well-versed in all phases of trial, arbitration and mediation proceedings. With over twenty-five years of experience, Sharron offers the firm’s clients invaluable practical advice to avoid legal procee...

Show Me the Money: How Independent Advisors Monetize in the Short-Term

While most advisors dream about the freedom, flexibility and control of independence, many don’t make the move because of the perceived downside in the short-term economics. And while that may have been true in the past, it’s no longer the case. In this podcast, Mindy shares how there are now plenty of ways to monetize in the short-term for those who choose to go independent. The reality today is that a variety of opportunities exist – with more seeming to be born each week – that help advisors make the leap to independence while still fulfilling their short-term economic needs. In this episode, Mindy discusses the pros and cons of several opportunities to solve for short-term financial requirements, including: * Taking a loan for startup capital. * Selling equity in your firm to investors. * Becoming quasi-independent or tucking into an already established firm. While short-term monetization is often a focal point, many advisors moving to the independent space do so to build an enterprise that will outlive them. As such, Mindy also shares 9 of the long-term benefits of independence—many of which also offer immediate yet long-lasting advantages.   Related Resources Quasi-Independence: The Super-Sophisticated Boutique Model Taking the Industry by Storm Even though some of the names may not be familiar yet, it’s the perfect option for advisors looking for more autonomy but unwilling to make the leap to full independence. Read -> Tuck-ins: Independence for Advisors Who Don’t Want to be That Independent For some advisors, giving up some control to gain additional freedom is the right path to independence. Read -> Independence Enhanced Going independent doesn’t have to mean going it alone. There are ways to find support, resources and community in the independent space. Read -> This podcast is also available on...                          Browse other episodes in this podcast series...  

Fact vs. Fiction: The True Realities of Independence for Financial Advisors

It’s often not easy to separate reality from myths and untruths—and this is especially true in the independent space. As one of the relatively new models in the wealth management landscape, it’s often subject to headlines and hearsay. In this episode, Mindy addresses some of the popular preconceived notions about independence, setting the record straight on common myths she hears from advisors. She shares advice and examples to dispel these statements and more: * “I won’t be able to support my high net worth, ultra high net worth or niche clients.” * “I can’t go independent because my clients are attached to my firm’s brand.” * “There’s too much work involved in taking the leap and running an independent firm.” You’ll also learn the 4 key questions you should ask yourself before considering a leap to the independent space.   Related Resources Independence: Myths and Misperceptions Another look at several common myths about the independent space, and the truth about each. Read -> 5 Trends from 2017 that Proved the Resilience and Relevancy of the Independent Space Our observations on the growth of the independent model in 2017. Read -> What Every Advisor Wants: The 4-Legged Stool How solving 4 key requirements of independent business owners can lead to comfort in the independent space. Read -> This podcast is also available on...                          Browse other episodes in this podcast series...  

A View from the Top: An Interview with Breakaway Broker Matt Celenza

What drives a wirehouse advisor to make the leap to independence? And what happens once they get to the other side? Hear it first hand in this one-on-one interview with breakaway broker Matt Celenza. Many advisors come to us seeking a clearer picture of what the journey to independence is “really” like. That is, beyond the hype and the headlines—focusing instead on the mindset, motivation and processes an advisor goes through before, during and after they make the leap. So Mindy reached out to Matt Celenza from Boulevard Family Wealth, a multi-family office managing approximately a billion dollars for ultra-high net worth clients, which he founded in July of 2017. In our candid interview, this 20-year wirehouse veteran shares extraordinary insights from his journey to independence. He discusses how his genuine desire to have complete freedom to build his business and service his clients as he saw fit became the driving force behind his successful move—and how that excitement trickled down to his clients. To “own something,” as he noted, is the dream of so many entrepreneurial folks. So if that’s where your mindset is, as Matt said, "Take the time now to get educated and explore." Mindy's conversation with Matt addresses the answers to these questions and more: * What were the major catalysts that drove you to independence? * How did your clients – especially sophisticated UHNW – react to your decision? Were they concerned about you leaving the big brand name behind? * How did you justify giving up the short-term pay-off of a retention or transition deal? * Why did you go the RIA route as opposed to becoming an independent broker dealer? * What are some things you are able to do – or anticipate doing – that you couldn’t do as an employee of a brokerage firm? * What was going through your mind the day you actually resigned from Merrill? * What can you tell other advisors who are considering independence? This is a rare opportunity to sit in on a “real” conversation that offers valuable information for advisors who, like Matt, desire greater freedom and flexibility in servicing clients, growing a business and ultimately maximizing its enterprise value.   Related Resources 5 Trends from 2017 that Proved the Resilience and Relevancy of the Independent Space In an industry marked by a year of turmoil, the spirit of independence has never been stronger. Read -> The Math Behind the Move to Independence Why so many advisors are going indy, even with stiff competition from hefty brokerage firm transition deals. Read -> What Every Advisor Wants: The 4-Legged Stool Independence has become the industry’s hottest ticket, solving 4 key requirements with a level of stability that advisors are growing increasingly comfortable with. Read-> The Decision-Methodology Infographic [PDF] Advisors use our proprietary decision methodology – illustrated in this infographic – to help assess where they’re at, what they want to accomplish,

The RIA Space: Freedom and Flexibility Maximized

Advisors with their sights set on the highest level of freedom and flexibility, plus the maximum ability to build long-term enterprise value, owe it to themselves to take a closer look at the RIA model. In this episode, Mindy focuses specifically on the RIA – Registered Investment Advisor – model, which offer advisors the maximum in freedom, independence, control, customization, open architecture and client-centric holistic practice capabilities. In a previous podcast episode, Mindy shared information and insights on the IBD or Independent Broker Dealer model, and how it differs from the RIA space. Listen in to get a better understanding of how the features of the RIA space can benefit those advisors who have a strong entrepreneurial mindset, and the different opportunities for building one's business. Mindy offers the following: * A clear description of the RIA and RIA-Hybrid models * An understanding of what the RIA experience is like * Key characteristics and benefits for advisors * A process to help guide you through strategic exploration   Related Resources 6 Key Reasons Why IBD Advisors are Moving to the RIA World For IBD advisors who feel they may have outgrown the space, there’s a real case to consider the next stage of independence. Read -> IBD vs. RIA: Which way should an advisor go? 5 differences – and potential limitations – every advisor should understand before they decide. Read -> The Math Behind the Move to Independence Why so many advisors are going independent, even with stiff competition from hefty brokerage firm transition deals. Read -> What Every Advisor Wants: The 4-Legged Stool Independence has become the industry’s hottest ticket, solving 4 key requirements with a level of stability that advisors are growing increasingly comfortable with. Read -> Business Model Comparisons [PDF] Which best fits your goals? Download -> This podcast is also available on...                         

Exploring the Independent Broker Dealer Model

The Independent Broker Dealer or IBD model offers a mix of freedom and support for advisors who want flexibility but also to retain some of the "scaffolding" they're accustomed to. In previous episodes, Mindy talked about “how independent” you might want to be. The reality is that independence isn’t one-size-fits-all. So in choosing whether independence is right for you at all, you need to understand the various models and what each offers in terms of freedom and flexibility. Then you can better align just “how independent” you want to be—that is, just how much support and scaffolding you desire. Do you want to be fully independent or do you like the idea of being supported? Do you want the freedom to manage your own P&L and operations? In this episode, Mindy focuses solely on the Independent Broker Dealer (IBD) model and what makes it so popular among many advisors who have gone independent. She shares: * Key differentiators of the IBD model * The benefits and limitations of the IBD model * What differentiates an independent broker dealer from a full service broker dealer * The difference between the IBD model and the Registered Investment Advisor or RIA model * 8 distinctions between the IBD and RIA models * A 9-point checklist to help determine the right broker dealer for you In the next episode, Mindy will define the RIA model and the unique advantages it offers for advisors looking for a greater amount of freedom.   Related Resources The enduring appeal of the IBD How the model retains its relevancy amongst independent advisors. Read -> 9 Requirements of the Modern Broker Dealer Relationship It’s not all apples to apples when it comes to comparing one IBD to another. Read -> IBD vs RIA: Which way should an advisor go? 5 differences – and potential limitations – every advisor should understand before they decide. Read -> 3 Key Elements of the Perfect Broker Dealer Partner Profile Evaluating broker dealers? Here are the areas you need to pay attention to. Read -> Independent Advisor Gut Check [PDF] The 10 criteria for comparing and contrasting broker dealers. Download ->   This podcast is also available on...