Get Ready to be Squeezed by Your Broker/Dealer

This is the latest installment of a regular column to answer questions from advisors who are considering transitioning to an RIA model. To see Brad’s previous articles, click here. To submit your question, please email Brad here.

Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.

Considering the recent market activity, the squeeze is coming.

Are advisors changing firms to avoid the squeeze making rational decisions?

I’ve been asked of late whether changing firms or affiliation models is wise during such conditions.

Before I explain the squeeze, I’ll begin with a pet peeve about how this situation is frequently portrayed.

There are firms (primarily independent BDs) pointing out that during the last downturn in ’08-’09, they had record advisor recruiting. That implies a choppy market is not only a good time to be making a move, it’s when they’ve experienced the largest inflow of advisors.