Independence, Interrupted: The Cost of Going Independent Without a Strategy

More advisors are leaving wirehouses in pursuit of independence—and for good reason. The promise of freedom, flexibility, and ownership is compelling. But independence alone doesn’t guarantee success. Without a clear strategy, the initial excitement of breaking away can quickly give way to frustration, confusion, and stalled growth.

The reality? Making the leap without a roadmap is just a change in scenery—not a path forward. And while advisor movement toward independence is clearly on the rise, it’s important to understand—and prepare for—the challenges that come next.

The best preparation? A strategy that turns freedom into focus.

Advisor-Reported Top Challenges to Becoming Independent

The move toward independence isn’t slowing—it’s accelerating. As RIABiz reports, RIAs continue to erode the wirehouse stronghold, with Cerulli projecting that by 2027, independent and hybrid RIAs will hold over one-third of all advised assets—potentially surpassing the wirehouses altogether (RIABiz, 2024).

Yet even with momentum building, the road to independence comes with real challenges. According to Schwab’s 2024 RIA benchmarking study, advisors cite a range of concerns—from regulatory complexity to client retention and tech implementation—as barriers that can delay or derail a successful transition.

Source: Charles Schwab & Co., Inc.

These challenges aren’t just operational hurdles; they’re strategic pressure points. And even the most capable advisors can stall if they don’t address them head-on with a clear strategy.

Strategy Isn’t Optional — It’s Essential

Independence gives you freedom—but freedom alone won’t grow your business. Strategy turns possibility into progress by sharpening your focus, setting priorities, and creating leverage across your firm.

With a well-defined plan, you can:

• Clearly articulate your value and attract the right clients

• Prioritize efforts that actually move the needle

• Make intentional choices about where to spend your time, energy, and resources

Whether you’re still considering the leap or already on your own, identifying the most common roadblocks is just the first step. What separates successful breakaways from those who plateau is a strategy that brings structure to the chaos. Without one, it’s easy to over-invest in the wrong tools, lose sight of your message, or get buried in day-to-day operations.

It’s not about doing more—it’s about doing the right things, in the right order, with purpose.

Here’s how a clear strategy can help you navigate five of the top advisor-reported challenges to independence:

Top Challenge #1: Compliance & Legal/Regulatory Environment

For many advisors, compliance feels like the heaviest weight in the transition to independence and it’s easy to see why—going independent because they lose the institutional support that previously handled these complex responsibilities. At a wirehouse or broker-dealer, you’ve had the backing of a full compliance team, legal department, and established guardrails. But on your own, those safety nets are gone. Suddenly, you’re responsible for navigating evolving SEC and state regulations, often while wearing multiple hats—including Chief Compliance Officer. The risk of a misstep, the time it takes to stay on top of it all, and the lack of clear, accessible guidance can make compliance feel like a major obstacle—one that keeps many would-be independents stuck on the sidelines.

How Strategy Helps:

• Builds compliance into the foundation from day one

• Guides selection of the right legal structure

• Helps evaluate whether to register independently or partner with a platform/OSJ for shared oversight

Top Challenge #2: Client Hesitation About the Move

You’ve built deep relationships with your clients—so it’s only natural to worry about how they’ll respond to news of your departure. Even when trust is strong, some clients may hesitate to leave the comfort and familiarity of a big brand. They may have questions about where their assets will be held, whether their service experience will change, or whether your new firm can offer the same resources. And with pre-resignation restrictions limiting what you can say, that uncertainty can weigh heavily. The fear of losing valued relationships during such a personal and professional leap is one of the hardest parts of going independent.

How Strategy Helps:

• Establishes a proactive communication plan

• Clarifies the “why” of the move to reassure clients

• Frames the change as a value upgrade—not a disruption

Top Challenge #3: RIA Firm Cost & Financing

The vision of building something of your own is exciting—but the financial realities can feel overwhelming. From legal and compliance setup to tech, marketing, insurance, and staffing, the upfront costs add up quickly. And during the transition, there may be a temporary dip in revenue as assets move over. You may be self-funding the launch or navigating financing options for the first time—all while trying to maintain business continuity. Even for seasoned advisors, it’s easy to underestimate what it takes to not just start, but sustain and grow. The stakes are high, and the pressure to get it right is real.

How Strategy Helps:

• Clarifies financial priorities and tradeoffs

• Identifies where to invest for greatest ROI

• Maps out revenue runway and breakeven timelines

Top Challenge #4: Finding the Right Partners

Going independent requires building a new ecosystem of vendors and service providers—custodians, compliance consultants, marketing support, tech platforms, legal counsel, and more. Newly independent advisors must evaluate these partners without the internal vetting and integration support they once had. The sheer number of options can feel overwhelming, and the wrong choice can impact client experience, regulatory standing, or operational efficiency. For advisors used to turnkey systems, assembling and managing the right team from scratch becomes a major lift that can affect both short-term execution and long-term scalability.

How Strategy Helps:

• Defines success and reverse-engineers the partner stack

• Creates criteria to evaluate fit and scalability

• Streamlines decision-making and avoids wasted effort

Top Challenge #5: Tech & Staying Up to Date

Technology is critical to delivering a competitive client experience, but many advisors aren’t used to making tech decisions solo. As independents, they must select, integrate, and maintain systems for portfolio management, trading, CRM, reporting, financial planning, and communications—all while ensuring compliance and cybersecurity. The landscape evolves quickly, and staying current requires time and expertise advisors often don’t have. Without an internal IT department, advisors worry about downtime, data loss, or falling behind peers in digital client engagement. This makes tech a daunting—but essential—area to get right from day one.

How Strategy Helps:

• Guides intentional tech adoption

• Ensures tools align with client experience and workflow

• Provides a roadmap for when to reassess or outsource tech decisions

Final Thought: Build for Scale, Not Just Survival

Your independence is just the launchpad—not the finish line. Whether you’re one year in or still planning, the sooner you invest in strategic clarity, the faster you’ll see meaningful, sustainable growth.

If you’re feeling stuck—or if independence hasn’t quite met your expectations—it’s not too late.

Schedule a call and let’s build the business you envisioned when you first made the leap—or first started dreaming about it. Independence is just the beginning. Strategy is what will get you where you want to go.

Sources:

• RIABiz. (2024). RIAs remain wirehouse kryptonite in 2024, and by 2027, JP Morgan, Merrill, Wells and UBS will see market share tailspin -- RIAs the obvious culprits, Cerulli data shows.

• Charles Schwab & Co., Inc. (2024). An intentional approach to growth: Results from the 2024 RIA benchmarking study from Charles Schwab.