An interesting survey by the Boston based consulting firm Elite Group has found that by a “slight” margin, RIA’s are not as happy with their careers as advisors in the wirehouses.
Surprised and looking further into this, Eric Bruck, principal of Silver Oak Wealth Advisors in Los Angeles, speculated upon learning of the survey along with other RIA advisors that the rigors of running a business could lead to disenchantment for some RIAs.
“For those who hadn’t accurately bargained on the price of independence,” Bruck says, “it could be a rude surprise.”
Bill Butterfield, research analyst for Elite and author or the survey tends to agree.
“The higher rate of career dissatisfaction among RIA-affiliated advisors is likely due to a couple of factors,” he said. “On one hand, there are requirements in running any business such as managing employees, managing the finances, overhead, etc. On the other hand there is the responsibility for compliance and technology. Advisors in the wirehouse channel are shielded from many of these responsibilities.”
Seth Streeter, cofounder of Mission Wealth Management in Santa Barbara, Calif., said he suspects that dissatisfaction may be more common among newer RIAs who have yet to adapt to the rigors of independence, and all planners seem to agree that after achieving a certain amount of mastery of this complex array of responsibilities, things get better. *
*OnWallStreet.com, “Who’s Happier…” Ann Marsh, March 28, 2013