By Robert Milligan Jr., Founding Partner, 1792 Wealth Advisors
Most advisors don’t spend much time thinking about a Plan B until they need one.
The reality is that many of the advisors I speak with aren’t making a move because something catastrophic happened. In many cases, they’re successful, respected professionals who have built great businesses and strong client relationships. They’ve simply reached a point where they recognize that their current firm may no longer be the best fit for where they want to go next.
Sometimes it’s a change in leadership, sometimes it’s a shift in culture or business priorities. Sometimes it’s the realization that the business they’ve built has outgrown the platform they’re on. For independent advisors or small RIA owners, it can be the recognition that running every aspect of the business is no longer the best use of their time.
Whatever the catalyst, the advisors who navigate transitions most effectively are usually the ones who spent time understanding their options before they had to make a decision. That’s why I believe every advisor needs a Plan B.
Not because you should always be looking to leave your firm, but because understanding the landscape makes you a better steward of your business, your career, and your clients.
The Industry Has Changed
There was a time when advisor movement was largely viewed as a choice between a traditional employee model and complete independence.Today, the spectrum is much broader.
Advisors can choose from a range of affiliation models, support structures, and ownership arrangements. There are opportunities to maintain autonomy while leveraging institutional resources. There are ways to preserve independence without having to shoulder every operational responsibility yourself.
As a result, many advisors are discovering that the question is no longer simply, “Should I be independent?” The more relevant question is, “What kind of environment allows me to do my best work?”
Due Diligence Isn’t Disloyalty
As advisors, we encourage clients to review their financial plans, assess risks, and evaluate alternatives. We don’t consider that disloyalty to an investment strategy, we see it as prudent decision-making. The same principle applies to our own businesses.
Understanding how other firms operate, how different affiliation models work, and what support structures are available does not mean you’re looking for an exit. It simply means you’re informed. If circumstances change unexpectedly, you’re making decisions from a position of knowledge rather than urgency.
The advisors who struggle most during a transition are often those who begin their research only after they have decided they need to leave. At that point, timelines become compressed and emotions often take over.
Having a Plan B doesn’t mean you’re planning to use it tomorrow. It means you’ve done enough homework to know what tomorrow could look like if necessary.
Independence Looks Different Than It Used To
One of the more interesting shifts I’ve seen over the course of my career is how advisors think about independence.
For many years, independence was often associated with doing everything yourself. Along with greater freedom came responsibility for real estate, staffing, operations, supervision, compliance, technology decisions, and countless other administrative tasks. For some advisors, that’s exactly what they want. For others, independence remains appealing, but they aren’t interested in becoming full-time business operators.
Increasingly, advisors are seeking a middle ground that allows them to maintain autonomy and ownership while benefiting from experienced operational support and infrastructure.
That evolution has expanded the range of possibilities available to advisors considering their next chapter.
Think Beyond Transition Economics
When advisors evaluate potential opportunities, it’s easy to focus on transition packages, payout grids, or short-term economics.
Those factors matter, but in many cases the more important questions are longer-term:
- How much control will you have over your business?
- How flexible will you be in serving clients?
- What does succession planning look like?
- How is enterprise value created and preserved?
- How much time will you spend on administration versus client relationships?
The answers to those questions often have a greater impact on career satisfaction and long-term business value than any upfront financial incentive.
The Best Time to Build a Plan B
The best transitions are rarely reactive. They’re the result of thoughtful planning, honest evaluation, and a clear understanding of what matters most to the advisor, their team, and their clients.
You may spend your entire career with your current firm. Many advisors do.
But there is value in understanding the alternatives available in today’s marketplace. There is value in knowing how different models operate. And there is value in having clarity around what your options would be if circumstances changed.
At the very least, that knowledge provides perspective. At best, it helps you recognize opportunities that may better align with the vision you have for your business.
Because a Plan B isn’t about preparing to leave, it’s about being prepared.
Robert Milligan Jr. is the Founding Partner of 1792 Wealth Advisors, an independent practice on the Raymond James platform. Learn more at Join1792.com.
Any opinions are those of Robert Milligan Jr. and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional. Investing involves risk and you may incur a profit or loss regardless of strategy selected, including diversification and asset allocation. Prior to making an investment decision, please consult with your financial advisor about your individual situation.
