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Top 7 Myths of Independence

MYTH #1:
I won’t be able to offer my clients the highest caliber of service.

The caliber of service you’re able to offer your clients boils down to choosing the right partner. At LPL Financial, we’re aware that independent financial advisors have a choice in selecting a broker/dealer. And we never forget it. That’s why our focus is on meeting your business needs head-on and exceeding your expectations.

We believe this enables you to provide your clients with the highest caliber service, delivered in a timely manner. LPL Financial offers:

  • A robust technology platform and easy access to the resources and tools you need to service clients
  • Proactive support for your growing business
  • The critical mass to provide an increasingly wide selection of products to service your clients
  • No proprietary products or investment platform to ensure objectivity and choice in the products and services you provide to your clients

MYTH #2:
When I change my broker/dealer, my clients won’t come with me.

An increasingly strong market exists for independent financial advisors who can provide unbiased, objective guidance. That’s a leading reason why the majority of financial advisors in the United States today are independent, and account for millions of individual client relationships. 

If you’ve developed solid relationships with your clients at a wirehouse, you can count on a solid client base when you go independent. At LPL Financial, we’re committed to helping our advisors grow their client base and their practices over the long term through exceptional client service, up to date technology and an unbiased investment platform.

MYTH #3:
The overhead expenses of running my own business are too high.

If you’re with a wirehouse, you’re actually paying for the firm’s overhead expenses — it’s reflected in your payouts. When you take the higher payouts offered by most independent firms and factor in the average costs of maintaining your business, you’ll most likely find that your net profits are much higher than they would be at a wirehouse.

Very few firms have the critical mass to make the most of management efficiencies; fewer actually pass the savings on to their advisors. LPL Financial is one of the few that do.

MYTH #4:
I can’t grow my business without a big name behind me.

Clients aren’t looking for a big name— they’re looking for a financial advisor who can grow their portfolios in line with their objectives and goals without second-guessing what that proprietary product is doing in their portfolios. With LPL Financial, you have a partner whose sole focus is helping you grow your business. And your clients gain a financial advisor who is able to exercise full objectivity in meeting their needs.

At LPL Financial, our business is growing your business. Like you, we place a premium on providing top-notch service designed to retain our clients and increase referrals. We believe that keeping clients satisfied-yours and ours-is still the best way to grow any business.

MYTH #5:
I’ll be on my own for compliance and legal support.

As a partner in your success, we share a vested interest in maintaining compliance. We know that your business and your reputation rely on it. That’s why we provide you with a dedicated legal and compliance team whose only job is working to protect the interests of your clients, you and the firm.

Independent broker/dealers often offer errors-and-omissions coverage through a third-party insurer, which means you’ll also benefit from all the resources they have to offer if you require legal representation.

MYTH #6:
Nobody takes home 90%.

Actually, this one isn’t a myth. Once you factor in expenses, no one in the industry earns 90% payouts. But if you’re backed by a firm that gives you the freedom to control your expenses, you are likely to net more as an independent.

Gross payout figures are only part of the picture. It’s much more important to focus on what you’ll net at the end of the day and the increased control you have in determining your net and your expenses.

MYTH #7:
Independents are not positioned to capitalize on the needs of the growing retirement market.

Did you really think we would miss the boat on this one? With millions of Baby Boomers headed for retirement, LPL Financial is particularly well-suited to help you make the most of this incredible opportunity.

Baby Boomers are redefining retirement planning. We know they’re not looking for cookie-cutter formulas. They want options, flexibility, and choices—exactly what independent firms like LPL Financial do best. In fact, we have a broad variety of programs and services to provide life insurance, financial planning and trust services for wealth transition–all targeted to this demographic.

A word of advice if you’re considering a career move
You already know that before making any career change, it’s important to do your homework. That’s why you’re here on this site. You need to ask all the right questions, and make sure you’re getting the right answers. At LPL Financial, our transition representatives are available to answer your questions and maintain your confidentiality at all times. Contact us at: 

888-250-2420

To learn more about our becoming an independent advisor, download our free handbook: Behind Your Success.