5 Misconceptions About Going Independent

1. “I’ll Lose Access to Investment Products and Platforms.”

It’s actually the opposite: Independence opens doors.

As an independent advisor, you can work with a vastly expanded universe of product providers, custodians or platforms that fit clients’ needs. You’re not limited by what’s on a firm’s internal shelf. And operationally? You're no longer navigating a bureaucracy — it’s the difference between steering a battleship and a speedboat.

You can respond to client needs faster, with more flexibility and far fewer restrictions.

In fact, independence allows advisors to create a more personalized experience for their clients by selecting the best solutions from a range of providers. Whether it's investment products, technology platforms or custodians, you have the freedom to choose what's best for clients, rather than being limited to a set of offerings dictated by a larger firm.

This flexibility doesn’t just benefit clients; it also gives advisors a competitive edge. You can optimize your practice by integrating best-in-class tools that improve efficiency, client communication and overall service.

2. “I Won’t Be Able to Keep Up With Technology.”

That may have been true a decade ago, but today’s independent firms often lead the industry in tech adoption. Open architecture allows you to integrate best-in-class tools across the board, from CRM to portfolio management to client communication. You can build a tech stack that aligns with your team’s needs, rather than waiting for a large firm to roll out a new system.

Many independent firms are already using artificial intelligence to drive efficiency, improve service and modernize marketing. It’s no longer a luxury; now it’s rapidly becoming an essential tool.

3. “I’ll Lose the Security and Support of My Firm’s Custodian.” 

A strong custodian is a must in our world, but being at a wirehouse doesn’t mean greater security or access. In fact, it can be the opposite.

In the independent space, you have the flexibility to choose from a range of custodians, including those unaffiliated with banks, each bringing different strengths to the table. This allows you to align with the partner that best fits clients’ priorities.

What’s more, the separation between advisor and custodian creates a more objective model. You’re no longer tied to your firm’s predetermined relationships or incentives. That means more freedom to act as a true fiduciary with full transparency, and partners chosen based solely on what’s best for clients. And they are noticing the difference.

4. “I Don’t Know How to Market Myself.”

This is a real concern for many wirehouse advisors, but independence doesn’t mean you’re on your own — It means that you’re finally able to market your brand your way.

As an independent advisor, you’ll have access to specialized marketing agencies and outsourced partners who understand the wealth management space. You don’t need to be a marketer; you just need to share your story. The right experts can help you shape and amplify it.

And in the digital age, tools like video, AI-driven content and targeted campaigns are easier to implement than most even realize. We’ve seen advisors go from no digital presence to full brand visibility in just months. The tools exist. The support exists. You just need the freedom to use them.

5. “I’ll Make Less Money.”

This is typically not accurate. When you’re independent, compensation grows as your business grows. You control the pace. You control the scale. You have full transparency into your financials and complete control over your bottom line.

In a 2017 blog post, Michael Kitces noted that wirehouse advisors typically took home just 35% to 55% of their gross production, while independent advisors often retained a significantly higher share by combining compensation and firm profits. While these numbers may have evolved since then, the advantage of independence has only grown. And with the recent headlines about large firms raising grid thresholds and forcing advisors to generate more revenue just to earn the same take-home pay, it’s no surprise that more advisors are seriously considering independence.

In fact, a Cerulli Associates survey found that 62% of wirehouse advisors believe that their compensation plans are overly complex, while 42% say the plans change too frequently. Frustrations like these are helping to fuel the industry's ongoing shift toward independence.

In most cases, independence doesn’t mean taking a pay cut, but rather building long-term enterprise value and keeping more of what you earn over the long run.

Bottom Line

These aren’t small myths; they’re mindset blockers. But once advisors take a real look at what independence offers, the shift becomes obvious. It’s about serving clients better, running a more efficient business and having the freedom to grow in a way that aligns with your values.

Although independence may seem like a leap into the unknown, it’s a move toward clarity, control and long-term value.

Robert B. Tamarkin is a founding partner and head of business development at Elevation Point, which helps advisors build and grow their own businesses. 

The views expressed are those of the author and do not necessarily reflect the views of Elevation Point or its affiliates. This article is intended for informational purposes only and does not constitute investment advice or a recommendation to pursue a specific business strategy.