In honor of Independence Day next week, InvestmentNews reached out to a number of financial advisors to learn their personal “independence stories.” Of course, wealth managers leaving an investment bank or wirehouse to operate on their own is a different type of risk than the mortal dangers faced by America’s Continental Army when they split off from King George III's empire. Nevertheless, the entrepreneurial spirit is very much part of the essence of America and what makes the country - and its financial system - the envy of the world!
Stephen Davis: We launched Fairvoy Private Wealth, LLC, on April 5th, 2024, after breaking away from a national broker/dealer. For me personally, I had been with the firm exactly 25 years to the day when we left. During the first six months of our transition, most of the clients chose to move their accounts with us so we could continue our relationship under our new independent approach.
Once we completed the initial transition phase, we began focusing on developing new client relationships through word of mouth, our monthly coffees, and our client/guest webinars and in-person events. We’ve noticed that several of our newest clients specifically wanted to work with an independent advisor, and in some cases, that was the reason they hadn’t worked with us previously. Going independent sparked meaningful conversations with our clients, which led to more referrals. It has been an exciting experience.
Davis: Most of our new clients continue to come through referrals, but rather than passively waiting on new introductions, we try to create an environment where people feel comfortable bringing guests. For example, we host a monthly coffee with a group of clients and encourage guests to attend. It’s a relaxed, low-pressure setting where people can get to know us, visit our new office, and meet the entire team. We also hold quarterly webinars on market updates and invite clients and prospects.
The move to independence sparked fresh conversations with our clients, which often extended to their friends and family. While the transition process certainly required planning, we were fortunate to have support behind the scenes that allowed for a relatively smooth experience, and our clients noticed. That confidence, we believe, made referrals more likely. Had we done it alone, it likely would’ve been far more difficult.
Davis: One of the challenges of being associated with a large national broker/dealer is that the rules are often written for the lowest common denominator - and the technology can be limiting. Anytime you tried to do something slightly outside the box, the answer was “no.”
Now, being independent, we’ve been able to build out a more customized technology and marketing suite, which has transformed how we operate - but that freedom can also be overwhelming. We've been fortunate to have guidance on selecting tools and resources tailored to our needs.
For instance, while we had a CRM at our prior firm, it wasn’t customizable. Now, we’ve built our own repeatable workflows and checklists that keep us on track. Even simple tools like Calendly have saved us hours of back-and-forth scheduling. Our financial planning capabilities have also drastically improved. With more robust software, we can confidently say we’re doing real financial planning now - something we weren’t fully equipped to do before.
Davis: The biggest challenge in our first year - outside of the client transition - was the realization that you’re not just a financial advisor anymore; you’re a business owner. That includes responsibility for your team, your clients, and your firm’s compliance with SEC regulations.
Many of the processes and systems we used to take for granted had to be built from scratch. In hindsight, the ability to tailor those systems to fit our specific needs has been a huge benefit. We didn’t try to go it alone, we worked with partners who helped guide us, particularly with compliance and marketing support.
We also had to learn the ins and outs of our custodian’s platform, and their training and ongoing support were instrumental in helping us adjust. Between that and the outside guidance we received, we were able to navigate those early challenges more confidently than if we had tried to do it all ourselves.
Davis: I spent 25 years at my prior firm, and the biggest thing that held me back was fear - fear of the unknown, of compliance, of the transition itself. We always knew that if we left, it would be to go fully independent rather than moving laterally to another broker/dealer.
We spent two years doing due diligence before launching our firm. Along the way, we spoke with others who had made the leap and found those who had a good support system behind them generally had a smoother experience.
The planning and execution process is difficult, no matter what. But once we were on the other side of the transition, six months in or so, we found ourselves saying, “Why didn’t we do this sooner?”
My advice? Don’t stay where you are out of fear. And don’t try to do it all on your own. Work with experienced professionals who have helped others navigate this path before. We’re now more than a year into our new firm, and we’re happier than ever.
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