Going Indie Isn't as Scary as It Seems

To find that person, take a close, critical look at your own practice. Identifying the areas where you're solid and where you need support makes it much easier to identify a partner who will be a great complement to a practice.

Industry Trends' Impact on Independence

As advisors and clients embrace digital interactions and get more comfortable in a remote and paperless environment, it has become table stakes for even the smallest independent advisor to have an effective and easy-to-use interface.

Often, it's best to rely on a platform partner for the delivery of this critical piece of infrastructure. Managing technology, like operations and compliance, is a non-revenue generating activity, and is therefore best left to an outsourced partner.

Another area impacting this movement is the increase in M&A activity and the expanding multiples of fee-only practices over the past couple of years.

Although much of this activity is moving upstream toward the mega advisors, private equity clearly has identified that the independent RIA model (fee-only, fiduciary, non-conflicted) is the superior one. You are wise to consider moving toward an independent arena where you are free from the limitations and conflicts of the wirehouse world.

Don't let going independent scare you. Fully thinking through the decision and answering key questions that will shape the vision of the future will show that going independent isn't quite the monster it appears.

Matt Regan is president of Wealthcare Capital Management, a fee-only and a hybrid SEC-registered investment advisor that also provides an investing platform featuring investment management and oversight.