Fewer advisors left the wirehouses this year and most of the ones who left joined another W2 firm.

Frank previews his updated Wealth Management Insight Report, a 67 to 68 page look at advisor movement and explains why some reports overstate how many advisors move each year. Internal registration changes, acquisitions, roll-ups and terminations get counted as moves, so his report separates out real advisor decisions.

Using registration data through the end of September, Frank says about 9 percent fewer advisors left the wirehouses this year while wirehouse recruiting of experienced advisors is down about 15 percent. Of the advisors who left a wirehouse or W2 firm, 57 percent joined another W2 firm, compared with 60 percent last year and about 36 percent went independent. Frank points to Raymond James, Janney, RBC, Oppenheimer and LPL's W2 channel as firms winning those advisors.

Stacey says independence is not for everybody and flags an industry age gap, with too few firms mentoring and training advisors in the 25 to 45 range. Frank explains that wirehouses effectively shut down training programs for about a decade because of cost and dropout rates and leaned on teams instead.

Frank also shares a story about a large advisor who chose a W2 firm over an independent one after Frank told him independence was not the right fit and Stacey explains why Elite does not try to convince advisors who are not business-owner minded. The episode wraps with Frank on why fewer advisors are starting their own RIAs with more small firms rolling up into aggregators and his reminder to not fall for the noise.

Questions answered in this episode include:

Are wirehouses really losing advisors to independence?

What percentage of advisors who leave a wirehouse stay in another W2 firm?

Why do wirehouse recruiting numbers matter more than departure numbers?

How do reports count advisor moves, and why can the numbers be misleading?

What is the age gap in the financial advisor industry, and why does it matter?

Is independence the right path for every financial advisor?

Why are fewer financial advisors starting their own RIAs and more rolling up into aggregators?

Chapters:

00:54 Introduction: The Wirehouse Exodus Myth
01:23 Inside the Updated Insight Report and How Advisor Moves Are Really Counted
03:31 Are Wirehouses Really Imploding
06:10 Why 57% of Departing Advisors Stayed W2
08:18 The Age Gap and the Missing Training Programs
14:47 Independence Is Not for Everybody
24:26 Why Fewer Advisors Are Starting Their Own RIAs
25:49 How to Get the Insight Report

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Elite Advisor Successions | Advisor Mergers & Acquisitions
https://eliteadvisorsuccessions.com

JEDI Database Solutions | Technology Solutions for Advisors
https://jedidatabasesolutions.com

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Advisor Talk is a podcast by Elite Consulting Partners focused on financial advisor transitions, recruiting and long-term growth strategy.