A conversation with Louis Diamond
It’s a question that advisors often ask themselves when considering a move:
“Should I go for the short-term windfall or bet on the long-term potential?”
The merit of forgivable loans tied to recruiting is an ongoing debate in the wealth management industry. The decades-long convention for advisors considering change (especially those in the W-2 world) is to monetize the business by negotiating a lucrative transition bonus with competing organizations.
Yet those on the independent side often talk about building long-term enterprise value and controlling one’s own destiny instead of focusing on deals.
Louis Diamond explored the topic in an article for AdvisorHub, Advisor Recruitment: The Bull and Bear Case for a Forgivable Loan and given its popularity, we decided to take a deeper dive in this podcast episode.
Is it wrong for an advisor to seek monetary remuneration for taking the risk and going through the hard work of a transition? Absolutely not!
Is it better for advisors to self-finance their move and focus on the longer-term economics of independence? Possibly.
Mindy and Louis consider both sides of the argument, including:
- The current state of deals—and how they differ depending upon firm and channel.
- The impact of advisor mindset—and how it has influenced change in the industry.
- The real value of a recruitment deal—and how to reconcile leaving potentially life-changing money on the table when going independent.
- The short-term windfall vs the long-term potential—and how to think through what’s best for your business life.
This episode may not settle the debate over whether you should opt for a forgivable loan or not—but it will give you some food for thought when considering what’s right for you.
Download a transcript of this episode…
Related Resources
The Self-Assessment for Advisors
A subset of the more extensive assessment that we provide to our advisor clients is now available for download. Download->
The Juggling Act: Balancing Short-Term Needs and Long-Term Goals
A process to help you identify and prioritize your immediate needs vs goals for the future when considering a move. Read->
Looking for the Biggest and Best Deal: Don’t be a Jerk!
5 things you can do to ensure you’re not giving off the wrong vibes and getting an inferior deal because of it. Read->
Show Me the Money
How Independent Advisors Monetize in the Short-Term. Listen->
The Bigger Picture for Independent Advisors
How to Monetize Your Life’s Work in the Long-Term. Listen->
Beginning with the end in mind
How to chart an efficient course to your best business life. Read->
