Lisa Gray

ContactLisa Gray has been a wealth writer since 2001. She has been involved in the wealth management industry since 1988. She is the author of two bestselling books—The New Family Office and Generational Wealth Management.
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graymatter Strategies LLC

Small Advisory Teams Are Like Money Flows; They're Migrating To Where They Will Be Treated The Best edit
Thursday, June 14, 2012 08:08

Tags: Advisor businesses | breakaway brokers | registered investment advisors

The trend for going independent is increasing as one of the mainstays of the industry is walking out the wirehouse door: the small producer. As wirehouses increasingly support large producers, smaller teams are feeling unloved and unwanted. And as money flows to wherever it is best treated, small advisory teams are following suit.

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Small producers, given the opportunities and support they need, may turn into large producers. But in the wirehouse world, they don’t usually get that opportunity or support unless they’ve already become large producers.
 
On the investment front, foreign investors are finding the US a safer and happier home for their capital markets investment dollars. The turmoil in Europe finds investors unwilling to take on the risk inherent in the sovereign debt situation. Even with the political uncertainty and lack of leadership in the US, European investors would rather take on that risk than the risk present in their own continent.
 
The US economy more than likely needs both short-term stimulus and a long term strategic plan to deal with its growing debt problem. The fiscal cliff that threatens the US economy will have to be dealt with in one way or another. The issue is that the ramifications of doing nothing could take a significant toll on an already fragile economic recovery.
 
And as smaller teams and producers feel increasingly underappreciated by the wirehouses they work for, they are joining the ranks of the largest job producing segment in the US economy: the small business owning entrepreneur. And just like the US markets are for Europeans, small teams may be a great source of growth in the independent registered investment advisor marketplace.

 

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