The world has changed. Many investors are looking for a different experience — and many advisors are, too. That’s why it can be frustrating for financial professionals to navigate the red tape and corporate bloat of massive financial institutions.
When they choose independence, advisors may be refreshingly surprised to feel like they can respond to individual client needs again. They may finally be able to address previously taboo investing questions, market in new ways, or even help make the world a better place.
That was the case for second-generation advisor Tim Whitney, who initially followed in his father’s wirehouse footsteps — only to pivot to independence and find his true calling as CEO of TradeWinds, an RIA based out of Raleigh, North Carolina.
But it was only after he made that leap that Whitney truly discovered what he believes are the benefits of independence, he said.
For some advisors, independence looks like addressing investor questions about topics and themes they’re genuinely curious about, rather than just repeating tired talking points. For others, it might come down to marketing their planning and investing solutions in new ways.
Without the corporate red tape, independent advisors might even choose to quickly respond to natural disasters, like hurricanes or wildfires, by offering their services or helping in their communities. For Whitney, independence meant more than he ever imagined, he said.
Leading his own firm was an outlet for Whitney’s entrepreneurial spirit, he notes in this edited transcript. He also feels it was a way to better align his advice with the needs of his clients, find the investors he was best equipped to serve, and respond to community needs as they arose.
H Tim Whitney, CEO of TradeWinds: “When we did jump to independence, after realizing that we had a lot of constraints (outside of FINRA and…the Securities Exchange Commission), we realized, ‘Oh my gosh, we can market in new ways. We can say what we need to say, as long as it's not promissory; as long as we weren't being egregious.’ We had a lot of that self-regulation already.
Being independent allowed us to explore things like blockchain and cryptocurrencies, marijuana stocks, and other unique outliers. Even if we weren't going to sell them, we could discuss them. When we were in the wirehouse, we felt like our hands were clamped.
We were able to raise money when faced with community disasters. When Hurricane Helene hit western North Carolina, we didn't have to ask anybody if we could do something. We just started collecting goods and getting them out to the fire departments and the municipalities. Those kinds of actions should happen immediately. And a lot of times when you go into the independent space, you have that ability.
Clients love that. They love the fact that when they want to do something, we can be a conduit for them and act.
We didn't realize that we could actually own a little bit more of what we're doing.…Clients have really enjoyed our ability to be free, because they see that we now enjoy what we're doing.”
The Synergize podcast explores the evolving role of the financial advisor in an emerging AI-driven world. Hosts TradePMR Chief Client Growth Officer Bill Coppel and Senior Editor Ryan Neal bring together thought leaders and industry experts across a range of disciplines, sharing insights designed to help registered investment advisors thrive in the industry of tomorrow. Listen and subscribe for free on Apple Podcasts , Spotify, and YouTube.
Tim Whitney and TradeWinds is a client of TradePMR. No compensation was paid to the client for this article and podcast. This article and podcast reflect this client's experience. Your experience may vary.
TradePMR, Tim Whitney, and TradeWinds are separate and unaffiliated.
For more than two decades, TradePMR has worked with growth-minded independent registered investment advisors (RIAs), providing innovative technology tools and support designed to transform their businesses. The privately-held brokerage and custodian services provider (Member FINRA/SIPC), based in Gainesville, Fla., works to streamline investment advisors' operations through comprehensive custodial, operational, and trading support. For more information, visit www.TradePMR.com.
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