An Overlooked Benefit of Going Independent: Quality of Life

She wanted to cap her number of clients at 50 because she felt any more than that would diminish her service level. She worked seven-hour days, four days a week. She traveled frequently and had many activities and interests outside of work. This advisor realized that work is not everything and had achieved balance in her life. 

It's All About Balance

In her book, "The Top Five Regrets of the Dying" author Bronnie Ware listed regret number two as, "I wished I hadn't worked so hard."  One particular case she wrote about was a patient in hospice care named John. He had wanted to travel more with his wife and spend more time together, but he also enjoyed the status his work gave him. He didn't particularly like the work itself, just the role it gave him in society and among friends. The chase to close a deal had also become a bit of an addiction for him. His wife was desperately lonely for his company in retirement but he kept delaying retirement even though they were both now elderly.

Then, John's wife developed cancer and was dying; John was forced to retire to care for her in her remaining time. Years later and dying himself, John reflected, "It's just the chase for more, and the need to be recognized through our achievements and belongings, that can hinder us from the real things, like time with those we love, time doing things we love ourselves, and balance. It really is all about balance, isn't it?" 

A friend of mine, Keith Mistretta, who recruits the Boston area for Ameriprise, agrees with the premise that advisors need balance in their lives, noting, "True success is achieved when an advisor discovers the right balance between business and personal time. Growing revenue and assets under management are great, but happiness can only be attained when personal relationships outside of work are equally strong. It's the balance that creates an impressive win for the advisor." 

The independent broker-dealer channel has a strong story to tell in terms of achieving quality of life and a balanced life. Still, the message the channel conveys is frequently not much different from that of the wirehouses. "We'll help you get to the next level" or when selling services such as practice management, "We'll free up to 30% of your time so you can spend more time in front of your clients."

Make Room for the Millennials

Instead of constantly pushing how to climb the ladder, how about promoting the value of spending that saved time in front of family and friends or pursuing outside interests? My generation, the Baby Boomers, were driven by the opportunity of more income and didn't mind working long hours to do so. It was the Boomers that coined the bumper sticker "He Who Dies With the Most Toys Wins." Boomers were loyal to employers. Today's Millennials are of a different mindset, attracted to the entrepreneurial aspects of being an independent advisor with book ownership but not loyal to employers. 

As the Boomers retire out of our industry, we will need to cater to the Millennials to fill the void. In very broad terms, Millennials are less motivated by money alone and long to be part of something bigger than themselves. They prefer to be masters of their own domain, choosing the hours they work and the clients they serve. They don't want to be defined by the workplace but are more interested in a balanced life.

For Millennials, it's important to be home for dinner with a happy home life as well as work life—money is secondary. Our industry needs to refocus in terms of addressing what matters to the Millennials and talk up the quality of a balanced life that the independent channel can offer.