There appears to be an unstoppable trend of advisors and teams adopting more independent options. The author of this brief article considers the main issues.

Amid frequent refrains of how the average age of wealth advisors is rising – in the higher 50s – and our own regular coverage of industry M&A – it is easy to see why the management of future and present talent is a hot topic. (We intend to look at this space in even more detail this year – please see our forward features schedule.)

To take an early look at the movement of advisors, why they are moving and what the issues are, please read this article from Jordan Raniszeski (pictured), who is senior managing partner, Carnegie Private Wealth. The customary editorial disclaimers apply to views of guest writers. Please email the FWR editorial team tom.burroughes@wealthbriefing.com and amanda.cheesley@clearviewpublishing.com) if you want to respond. (More detail on the writer below this article.)

Gone are the days when financial advisors primarily changed firms during market downturns or in pursuit of bigger upfront paydays. Today's wealth management landscape is witnessing a fundamental shift in how and why advisors choose to make transitions, with moves increasingly driven by long-term strategic considerations rather than market cycles.

During my formative years as a financial advisor during the 2007-08 Great Financial Crisis, I witnessed a wave of advisors changing firms. Many left because their firms were bought or merged, facing uncertain futures. Others strategically timed their departures, believing that clients would be more likely to follow them when their former firm was struggling. This thinking made sense in the context of the time, but the industry has evolved significantly since then.

Some of this evolution stems from the remarkable market strength over the past 15 years. Advisors waiting for a protracted downturn to make their move would have been waiting a very long time. However, the more profound change lies in how advisors view the financial considerations of transitioning.

The new economics of transitions
While 78 per cent of advisors who switch still cite compensation as a primary motivator, their focus has shifted dramatically. When I started in the industry, conversations centered almost exclusively on upfront payouts – which firms were offering the biggest immediate checks. Today, that calculus has fundamentally changed with the industry's shift toward independence and advisors' growing understanding of their practices' true market value.

Louis Diamond of Diamond Consultants describes this new mindset as "Career Enterprise Value" thinking. Advisors now ask themselves: How can I maximize my career's total compensation value when considering upfront money, ongoing payout, growth potential, and the terminal value of my book or equity stake at retirement? This shift is particularly significant given the entrance of private equity as a potential exit strategy.

The rise of team transitions
Perhaps most striking about current transition trends is the movement of entire advisory teams. These coordinated moves reflect a deeper focus on infrastructure and capabilities rather than individual opportunities. Teams are increasingly prioritizing:

-- Advanced technology platforms that enhance client service capabilities
-- Greater autonomy in shaping the client experience
-- Customized transition and ongoing support
-- Clear succession planning pathways for the next generation

My firm, Carnegie Private Wealth, exemplifies this trend. When our team, managing over $1 billion in client assets at a large bank brokerage, began exploring options, we prioritized complete control over our technology stack, freedom in client communications, and the ability to grow our team in ways that made financial sense for everyone.

The numbers tell the story
The industry data supports this shift in priorities. Advisor headcount at RIAs and independent brokerage firms has risen by 8.6 per cent over the last decade, while traditional wirehouses have seen a 10 per cent decline. This trend coincides with what Michael Kitces refers to as the evolution from "Financial Advisors" to "Financial Advisers" – a shift from sales-focused professionals to highly credentialed experts providing comprehensive guidance.

What this means for clients
For clients, this evolution in advisor transitions presents both opportunities and considerations. While not every advisor changes firms for the right reasons, sophisticated team moves typically reflect careful due diligence and consensus-building. Teams understand that maximizing enterprise value requires creating enhanced client experience.

These considerations almost universally push teams toward more independent options, whether that's an independent broker-dealer like LPL Financial (which acquired one out of every four transitioning advisors last year) or a fully independent RIA with various custodial support options.

Looking ahead
Industry experts predict this trend will continue. Cerulli Associates estimates that by 2027, 31.2 per cent of market share will be controlled by independent firms. While traditional wirehouses remain valuable for certain advisors, particularly those still building their books or who thrive in structured environments, the scales increasingly tilt toward independence for established teams focused on long-term enterprise value.

This evolution reflects a maturing industry increasingly focused on long-term sustainability rather than short-term gains. The shift away from short-term moves driven purely by financial gain represents better alignment between advisor and client interests – a positive development for all involved in the wealth management industry.

About the author 

Jordan Raniszeski has been serving clients in the financial services industry for 21 years and has been a Certified Financial Planner since 2004. He received his bachelor's in business administration with honors from the University of Notre Dame. He has become an advocate for many local charitable organizations since moving to Charlotte in 2002.