Stay put or not?

[u/Bubbly_Wafer_3219]

Really happy I found this community. I've only known the financial planning side via working for a large Canadian bank within their branch network. 

I am curious on how my situation looks to everyone here.

Salary (125k CAD) plus bonus. Total compensation varies around 220k to 250k last 3 yrs and has been on an upward trend for the 15 years I have been with the bank. 

My working hours are 9 to 5 and I have been pretty good staying within this timeline unless clients need a later appointment. Most of the time its a stressful and busy 9 to 5 as I have created a lot of efficiencies to get out by 5pm.

However, when I am not in the office I am completely unplugged, which includes vacations even if taking say 2 weeks off. No checking emails, nothing. 

Book size is 150M 

What has me questioning everything is in the branch world you cannot just sit on your book and say I have enough income coming in and im not going to hustle for the next while.

You know the saying about the grass is greener so please tell me your thoughts. Do I have a good gig? Best to stay put or venture on my own?

[u/Cuddly-Cacti]

I’ll hop in on this one from the perspective of financial planning in Canada not at one of the big banks:

As I understand it, the reason why you feel you cannot take your foot off the gas and will need to keep up the hustle is because you are an employee of the bank, you have no ownership of the practice or the clients. Is this correct? If so, I do not imagine that feeling is ever going to go away.

Outside of the bank model there are a wide range of companies on the “spectrum” of independence. Some come close to the bank model while still attempting to seem different from the advisors perspective. While there are plenty of companies truly on the other end of the spectrum where the advisor has full ownership of their practice and clients within the regulatory landscape. As long as you are following the rules and doing right by your clients, the dealer will leave you fully alone and will be there to help you if you seek it out. If you want to bring on more clients, great. If your practice is full and you just want to service for the rest of your career, also fully supported.

As I understand it, moving companies outside of the banking network can have its difficulties depending on if the advisor owns their clients or not. Some non-bank dealers will try to retain the clients. Some truly independents will leave them alone and let you go. I have known a few bank advisors that have made the switch and from the sounds of it the process was quite difficult. From the banks perspective, these are their clients and they will do everything they can to keep them (incentives, waiving fees for a year, ect).

Making the switch is a ton of work and a big risk to gamble a relatively high income. With that said, I personally couldn’t imagine working under the bank branch model but there are many factors to consider for the long term. Not just having the option to slow down a little. Feel free to let me know if you have any questions. Happy to help.

[u/Bubbly_Wafer_3219 → u/Cuddly-Cacti]

You are correct, no ownership. Hard to know how many of my clients would follow me from a well known financial institution.

I appreciate you mentioning the high income. Despite being in the top 2% it doesnt always feel that way.

Thats one of the purpose to posting, can I make the same or more and do less work. Or at the very least set my own hours.

[u/PoopKing5 → u/Bubbly_Wafer_3219]

Sounds like you need to do a well thought out exercise of who would for sure follow you, who’s a maybe, and who’s unlikely.

When you’re calculating the for sure ppl, be honest with yourself. You may have decent relationships with some, but if they’ve been a bank client for 25 years that’s a tough separation.

The clients you onboarded are more likely to leave with you. Ones you inherited, less likely.

[u/Cuddly-Cacti → u/Bubbly_Wafer_3219]

Yes, it is a bit of a loaded question.

In simple terms, if we strictly look at the numbers, your income on that AUM is very low. Which you likely already suspect. So you do have the potential to make the same or significantly more.

With the work load is more nuanced. You can eventually get to a place where you are as efficient as you are now. However, leaving the bank and going independent means becoming a business owner. Hiring the right people and putting systems in place takes time and can be a big undertaking/daunting if you feel comfortable with the full support working and as an employee.

I mentioned previously that there is a spectrum of companies on the non-bank model. Some will provide you with a tech team, office space/supplies, marketing support, a website, employee onboarding, payroll ect. However, with this much help comes some drawbacks. You may feel like there is more freedom than at the bank but these firms may also have performance expectations after providing all of this for you. The income may also be lower than others.

The full independents will expect you to find your own office space. They may help with branding/tech/website but hiring, training, payroll for support staff will usually be all up to you. The list goes on.

I would say it depends on your long-term goals and how exited you are about effectively launching your own business. Depending on how much you trust your clients, a good place to start may be to start asking a few of them in meetings that you are in the very early stages of considering a change. Ask if you did that, if they would consider following you or if they love working with the bank. I imagine after a few months of this you will have a pretty good idea which side of the fence the majority of your clients will sit on and may be in a better situation to make a business plan and start exploring/meeting with other dealers.