FINSUM
Many advisors are questioning whether now is the right time to switch firms, especially amid market volatility. While uncertainty can make timing feel risky, waiting for the "perfect" moment is often a losing strategy.
Market turbulence can actually create opportunities, as clients seek reassurance and may be more open to discussions about better solutions. The key factor in a move isn't timing but whether a new firm offers better resources, technology, and support for clients.
Working with a transition consultant can ease the process by handling logistics and securing offers discreetly.
Finsum: Ultimately, the decision to move should be driven by the right opportunity, not market conditions.
The advisor landscape is shifting, with over 9,000 advisors changing firms in 2023, particularly within the RIA sector. Many advisors employed by RIAs—often non-owners earning a percentage of revenue or salary—are seeking greater autonomy, ownership opportunities, and better compensation.
The rise of large RIA aggregators and increasing M&A activity have contributed to advisor dissatisfaction, as firms focus on efficiency and growth at the expense of individual autonomy.
Advisors looking to transition have several paths, including joining another RIA, moving to a wirehouse or bank, launching their own firm, or affiliating with an independent broker-dealer. Each option balances control, compensation, and operational complexity, making careful planning essential for a successful transition.
Finsum: As the RIA industry consolidates, firms must innovate their advisor value propositions to retain talent and remain competitive.
Target-date funds offer a hands-off approach to retirement investing by automatically adjusting asset allocations over time. These funds balance growth and security by shifting from stock-heavy portfolios in early years to safer investments like bonds as retirement nears.
Named for the investor’s target retirement year, these funds simplify decision-making and are commonly found in employer-sponsored 401(k) plans. A key factor in choosing one is its “glide path,” which determines whether asset adjustments stop at retirement or continue for years beyond.
While convenient, investors should compare expense ratios and investment strategies to ensure alignment with their risk tolerance. Three TDF funds to consider are:
- Vanguard Target Retirement 2045 Fund Investor Shares (VTIVX) – Expense Ratio: 0.08%
- Fidelity Freedom Index 2045 Fund Investor Class (FIOFX) – Expense Ratio: 0.12%
- T. Rowe Price Retirement 2045 Fund (TRRKX) – Expense Ratio: 0.62%
Finsum: Despite their “set it and forget it” appeal, periodic reviews help maintain a well-balanced portfolio.
Deeper tax planning integration in wealth management can enhance advisors’ ability to deliver proactive tax strategies that go beyond traditional investment management. Tax planning has become a crucial differentiator in modern wealth management, with more investors seeking advisors who can optimize after-tax returns and long-term financial outcomes.
Strategies like Roth conversions, tax-loss harvesting, and asset location are now essential tools for high-net-worth clients navigating an increasingly complex tax landscape. With concerns about rising tax rates and policy risks, forward-looking tax planning is becoming indispensable for preserving and growing client wealth.
Advisors who incorporate these strategies can build deeper client relationships, attract more assets, and position themselves competitively in an evolving industry.
Finsum: Tax strategies help give advisors an edge when dealing with clients and helping them allocate to efficient portfolios.
Switching broker-dealers is a complex process, but with the right approach, it can be a transformative step for an advisor’s business.
- Legal considerations should be the first priority, as non-compete clauses and client ownership agreements can create hurdles if not addressed properly.
- Developing a detailed transition plan at least 90 days in advance is essential, ensuring advisors understand which accounts can move, which will remain, and how client data can be organized legally.
- Engaging staff early in the process prevents last-minute chaos and helps distribute responsibilities effectively.
- Advisors should also consider client communication strategies, ensuring a seamless transition that reassures clients and maintains trust.
Finsum: Ultimately, a well-executed move can enhance an advisor’s ability to serve clients while positioning their practice for long-term growth.
Planning for a financially secure retirement requires careful savings and multiple income streams to sustain one’s lifestyle after leaving the workforce. While IRAs, 401(k)s, and pensions are common sources of retirement income, annuities are another option to consider, that can suit investor looking to maximize income.
Annuities come in two main forms: immediate annuities, which provide guaranteed lifetime income starting right away, and deferred annuities, which allow funds to grow tax-deferred until withdrawals begin. Robbins argues that immediate annuities offer unique benefits due to mortality credits, helping those who live longer receive higher payouts.
Though some financial experts debate their effectiveness, annuities can provide a stable income stream, particularly when paired with Social Security and other investments.
FINSUM: For retirees seeking predictability in their finances, annuities may serve as a valuable tool for long-term financial security.
Energy stocks have outperformed the broader market this year as investors pivot toward companies with strong cash flow and reliable dividends. Despite a slight dip in oil prices, the S&P 500 Energy Select ETF (XLE) has gained nearly 8%, while tech and consumer discretionary stocks have struggled.
Energy equities appear more resilient to inflation and tariff concerns, with experts noting that U.S. energy exports are less likely to face retaliatory trade measures. Rising natural gas prices, which have surged over 30% in 2025, have further fueled gains for energy companies.
Some major pipeline firms, like Plains All American and MPLX, have posted double-digit gains year to date. With Brent crude trading above $71 per barrel, analysts anticipate a gradual climb before prices dip later in the year.
Finsum: With rising inflation expectations, energy stocks could be the pathway to avoid the inflation tax or at least offset it in your portfolio.
Even the best-laid plans can go awry, and for advisors transitioning to a new firm, the risks increase when due diligence is rushed. A well-thought-out strategy can help avoid common pitfalls, especially when considering client loyalty and portability.
Clients generally follow advisors, not firms, but those who have moved before must present a compelling, client-centered rationale for another transition. The ability to replicate services, including alternative investments and loan terms, is also crucial, as logistical hurdles could deter clients from making the switch.
Legal risks, such as violating non-solicitation clauses or mishandling proprietary information, can lead to costly consequences, making legal counsel essential.
Finsum: While unexpected challenges may arise, advisors can minimize disruptions by learning from past transitions and following best practices.
JP Morgan Asset Management is gearing up to introduce its first private credit interval fund, aiming to expand its footprint in private credit. This newly registered credit markets fund, filed with the SEC, will be accessible to wealth market investors.
The fund plans to maintain a diversified portfolio that includes loans, bonds, structured finance securities, and other credit-related investments. Interval funds, like this one, provide access to private market assets with periodic liquidity windows, balancing stability with limited redemption opportunities.
To manage liquidity, a portion of assets will be allocated to short-term debt instruments, money market funds, and cash reserves.
FINSUM: As investor demand for private credit grows, asset managers are increasingly tailoring products to individual investors seeking diversification.
Advisors evaluating a new firm should ask key questions to determine if it aligns with their long-term goals and client needs.
- First, understanding who owns the firm reveals its revenue structure, potential proprietary product requirements, and overall objectivity.
- Second, clarifying who owns the book of business is crucial, as it impacts client retention and succession planning in the event of a departure.
- Third, identifying the firm’s clearing firm or custodian helps advisors assess whether transitioning will be smooth or require significant operational changes.
Staying with a familiar platform can simplify the move, while switching may present challenges.
Finsum: By addressing these questions upfront, advisors can make informed decisions about their professional future.