Why So Many Successful Advisors Feel Stuck - Best of Replay

Speaker A: Welcome to a replay of one of the most popular episodes from our podcast series for financial advisors. Why so many successful Advisors feel stuck? It's a special industry update with Mindy Diamond. I'm, um, Louis diamond and this is the Diamond Podcast for financial advisors.

Speaker B: At, uh, Diamond Consultants, we help elite advisors identify the right environment for their businesses to thrive, whether that's at a wirehouse, boutique or independent firm. With nearly three decades of experience, we've guided thousands of advisors and represented more than a quarter of a trillion dollars in assets transitioned. And each year, one in four advisors managing a billion dollars or more who change firms are our clients. Our process is education driven and based on building relationships, starting as your strategic partner. Well, before you're even thinking of a move. To schedule a confidential conversation, call us at 908-879-1002. Wondering why advisors change firms and where they're headed? Are transition deals going up or down? Those very questions and more inspired us to create our annual Advisor Transition Report. It's the award winning data driven resource designed for advisors that connects the dots between the motivations around movement and the firm's appetite for top talent. Arm yourself with the knowledge you need to make smart decisions. Download your copy@diamond-consultants.com transitionreport.

Speaker A: We spend a lot of time talking with advisors who by every external measure are doing exceptionally well. They've built real businesses with strong production, loyal clients and teams that continue to grow. And yet, behind closed doors, many of these same advisors are quietly asking a different set of questions. Not how do I fix what's broken? But why doesn't this feel as good as I expected? That tension is showing up more frequently than it did five or 10 years ago. And it's not because advisors are failing. In many cases, it's because they've won and now find themselves staring at another 15 to 20 years of more of the same, unsure whether comfort has slowly replaced energy. This industry update is about that very moment I asked Mindy to join me to unpack what we're hearing from successful advisors across the industry. Why success itself can become a constraint. How fear of change competes with fear of standing still. And why record valuations, longer careers and the maturity of the independent space are, uh, changing the psychology of decision making. We also talk about the right questions to ask before considering a move. Questions about control, enterprise value, legacy and time horizon. And how advisors can create clarity without forcing a decision. There's a lot to explore here, so let's get into it. Mindy, thanks for joining us.

Speaker B: I'm so happy to be here always.

Speaker A: This is a fun topic. So today we're just going to dive right in. I'm curious from, um, your vantage point and talking and working with many of the best advisors in the industry at a high level, what are you hearing from successful advisors today that feels different from five or 10 years ago?

Speaker B: First of all, for the most part, I think that, uh, top advisors are loath to move and they may have a bunch of frustrations or things that they wish were different, but generally speaking, they've always been well taken care of. They have the back phone, um, to the top, it's good enough. And nobody wants to mess with success. But two things are true today more than ever before. That the competitive landscape, there are more options than ever before. That their businesses are worth more than before because it's more than two things that they're thinking about their business as a business and saying, yeah, it's a hassle to move, but, uh, if I can maximize the value of my business more elsewhere and at the same time solve for what I want to, maybe I really do need to consider it. And so I think that it's a time of more consideration that top advisors in particular are just not willing to settle for the status quo.

Speaker A: Yeah, no doubt. The only thing I would add, but I completely agree, is that today the retire in place or succession opportunities for a wirehouse advisor to transition or sell their business to their next generation or to another team or even an independent advisor to sell their business to their broker, dealer or to someone within their firm. Those opportunities, the internal options I think are more compelling than ever. So we hear a lot from really, um, successful advisors who actually doesn't matter if they're successful or let's say they're mid tier in the industry where it's much easier to stay. And the firms are smart, they've made these internal deals better for the retiring advisor at the expense of the inheriting advisor. But they definitely try to create the easy button for someone who successful and might be fairly close to the end zone of their career.

Speaker B: And yeah, abs unequivocally. And so I think what happens is that as these senior advisors are weighing the notion of will I eventually take my firm's retire in place program, hit that easy button if you will, take the path of least resistance before they do that, most of them will and absolutely should at least get educated about what else is out there. Not with an eye toward moving necessarily, but with an eye toward knowing what their, what their value is before they sign on for the next seven to ten years.

Speaker A: No doubt about it. So I think for the most part we're talking about, um, we mostly talk to advisors who are objectively winning. They're, they have amazing businesses, they're growing, they have loyal clients. Work life balance is probably pretty good. So why do so many of these advisors still feel unsettled at the end of the day?

Speaker B: Because I think that without question, the number one thing that every advisor, but definitely the most successful advisors want is agency. Agency over their professional life. And anything, any day, any event that smacks of loss of agency or less agency than they would like, less control than they would like, makes them feel. Unsettled is a good word. Unsettled is probably a euphemism for exceedingly frustrated, really angry, ready to go. So look, our job in talking to these folks is first of all to say to them there is no perfection anywhere. So the first thing is you may be annoyed that your firm did X, Y and Z, or you don't have control over A, B and C, or you may want more of A, B and C. But at the end of the day, you need to be sure that you've also got the hat that uh, you're aware of the hassle factor. You're willing to trade one set of problems for potentially another you got. I guess what I'm saying is you gotta really be sure that you want it. That's the bottom line.

Speaker A: No doubt. I would also add a bit of a difference, Ben, that a lot of advisors, these folks that I think by any objective measure, they're killing it. Like you look at any of, uh, their friends outside the industry, their friends probably look at them and say, wow, this advisor has an amazing life. And I think we'd probably say the same, But I think we see it where there's a difference between being professionally motivated and energized versus just being comfortable. And I think with a lot of folks, especially if it's a fee, uh, based business, their clients are mostly friends. They grinded in the early years, they still work hard, but now things are on autopilot. So I think some people are unsettled because they have 10, 15, 20, 25 years left to work. And they look and say, this is great, I make a good living. Life's not that hard. But they're missing that, that spark they used to have.

Speaker B: I couldn't agree more. I actually love that spin. And if I can, I'll share an example of, um, like a conversation I had literally just last week. So talking with one of three senior partners on a very successful wirehouse team, without a doubt one of the top teams in the industry. And this is a team that absolutely has a bat phone to the top. This is a team that, that gets referrals from their firm. So if another advisor leaves, they're the go to. If someone has an investment banking deal and needs to bring in a wealth advisor, they would go to this team. This is the team or one of a few teams. And I talk to them probably every six months for the last 10 years. And I'm not kidding. And we just have a nice relationship. They trust me. No, I would never sell them. And so they just want to understand sort of the pulse on things. And, and uh, for years that's essentially what they've said, is we're killing it, we're crushing it. Uh, we are the go to team and everything is hitting on all cylinders. And we know that we've got our firm's retiring place programs from when two of our senior partners are ready to cash out. But just last week, the, not even the senior most member, probably the second to senior most member, called and said it's all working well, but I have this fire in my belly. That's a good way to say it, right. I have the sense that I'm missing something. And so some of the time it's about just getting to that place. Say when the straw that breaks the camel's back, something happens, you can't take it anymore, time to go. But with those top advisors, more often than not, it's not about straw that breaks the camel's back. It's much more about fire in my belly. Like I realized that. Will I feel good if at the end of the day, five minutes, five years or 20 years from now, will I feel good, uh, if I leave it all behind right here?

Speaker A: Yep, exactly. Yes. I think part of it is legacy, but the other part is just kind of fast forwarding the tape. If you say 20 years from now and you look back in the last 20 years, are is you plus 20 years going to feel satisfied and encouraged and excited about what you were accomplishing or was it more of a, uh, yeah, it was good. It was easy. I bought three houses and I have a boat. Or was it more about the personal joy of growing and building something and being part of something?

Speaker B: So where. That's actually a very good way to say it. Where can a top advisor find that joy? So let's say I'm, I'm, um, hitting on all cylinders, top of the food chain. At fill in the blank firm, a traditional firm, what are typically the things that advisor, the options that advisor might consider that could ignite that joy?

Speaker A: Yeah, I mean honestly, like probably a bad, non specific answer, but it really could be anything. I mean we see plenty of teams that are with one major wirehouse, they move to another one and just the act of transitioning is re energizing. They have um, back end bonuses to hit. This new firm is a bit of a different culture. They feel more important again and that's their spark. Others it would be, we're building something, we're creating our own firm. Others might be, I'm now part of, I'm an equity partner in something that I have a hand in. I have a voice, they actually listen to me. Um, so I think it can be all the above. It's more about what is it that an advisor is most interested in. And then at this point in the industry it's choose your own adventure. Like if, if you have some sort of feeling or urge, whether it's, I want to do something different, I want to grow faster, I'm frustrated by xyz. It's more about filling in the blanks of what uh, your next journey looks like. And my guess is just thinking about that is going to provide that natural spark or ignition.

Speaker B: Yeah. And if I can, the piece of advice that I gave to this team and I think is worth mentioning here. You're absolutely right. Choose your own adventure. To us, I think we would both say that the most exciting thing about being in our position and being the counselor or the guide or the sherpa to advisors as they consider what comes next, is the amount of choice that they have and how exciting the next chapter can be. But what I said to this team or the one advisor on this team is you've always got to be really clear on what your true north is. So yes, there's a lot of options you can find. An advisor can find joy or reignite the spark at any number of choices more than ever before. But being really clear before you begin to take meetings or think about it, on what you're looking to solve for what's most important to you really matters. Or else you wind up just spinning your wheels for a lot of time.

Speaker A: Really agree. How do you distinguish between being comfortable in your business and being energized by your business. Do you think, do you think there's a difference?

Speaker B: Yeah, uh, look, let's. I think in some cases they could be one and the same. Right. I think somebody can be Comfortable because they feel energized. They're hitting on all cylinders. They've got a lot of agency and professional control over their business. They're where they want to be, they're living their true north. But I think in many cases and many of the advisors we've counseled, they aren't one of the same. I'm comfortable because as you said, I'm, um, I have a great quality of life. I'm making great money, I have a lot of freedom to coach my kids basketball team, I can work from home, I can travel when I want to. I have great clients. I feel I may not technically own my business, but I feel as though I do. I'm comfortable enough. But what this advisor last week said to me and what we hear a lot is I'm comfortably uncomfortable that I'm comfortable enough. If I retired from here, I will have made a ton of money, I will have done good work and it all would be good enough. But whether or not good enough is really good enough in terms of professionally satisfying and everything you want it to be is a very different question.

Speaker A: Exactly. I'll give an example of a, uh, of an advisor I speak to who's independent. So he's been independent for his entire career at a broker dealer is a. He's uh, an absolute stone cold killer. I told him that he's probably top three advisors at his bd so it's great for the ego. He's on the conference circuit and sharing his best practices. But he's in his 40s and said to me, I can continue to rinse, repeat, I can continue to get the accolades and be on the main stage, but I feel like I'm missing something. I just know how to run the same plays here and I don't really see how that's going to change. So he has a pretty hard decision because it's nice to feel important, it's nice to grow without a lot of extra effort. But for this individual, it's becoming clear that spark or feeling energized again, um, is his true north.

Speaker B: And so what would he look at? In other words, if you are already top of the food chain at your broker dealer m and by the way, we see that a lot that advisors in the independent space that work under a broker dealer that are number one, they are the one at the conference that everybody goes up to and said, oh my God, I hear such great things about you, I want to learn from you.

Speaker A: So what is it he's missing for this individual? What he thinks he's missing is the chance to really build his own platform. So if this gentleman decides to make a change, it's definitively going to be to build his own RIA where he can pick and choose all the technology. He's really bullish about his personal network and being able to recruit like minded folks in to do acquisitions. And his North Star is going to be how do I build the most valuable enterprise that I can sell for a whole boatload of money 15 years from now? It's a great example because this person has everything that most people would want, but he's still wanting more. And what he's looking to accomplish is probably similar to a lot of people. But the means that he's going to get there and the weighting that he's putting on his criteria are different. And that's what's, I think the best part of being an advisor is you have so much choice. There's no one telling you you have to grow, you have to do this, you have to care about money, you have to onboard X number of clients. It's much more about how do you listen to your heart and then make intentional choices to make it happen.

Speaker B: Essentially, yeah. And I think that's the calculus, right? His calculus is it's more than good enough here. The question is, am I willing to upset what's more than good enough? Upset that apple cart in order to get something that is marginally better. And his answer or our advice to somebody like that is it really depends upon how much you want it. If it will feel soulful to you, if at the end of the day you will feel better about the professional legacy you left behind having built something bigger and better with less limitations, then you'll do it. You have to decide how much you want it. It's interesting if I can go back to this example, this team's true north is a little different and it's worth contrasting. So while for sure they would love nothing more than to maximize enterprise value and they recognize that if they and any of their partners retire through their firm's retirement place program, it's a, uh, way of monetizing. But they look at their firm as a monopolistic buyer. That was the term that they use. My comment to them is so what? Monopolistic or not, if at the end of the day it allows you to do what you need to do and you get paid a fair value, who cares if they're monopolistic? That really is the truth. But their true north is they would love to build something they don't need to build their own platform. In fact, they would want nothing more than to plug into an already existing platform. And they recognize that by doing so they're giving up some enterprise value. Right. To go out. And the way to maximize enterprise value the fullest is to go out and build your own. But in this particular instance, they don't want to do that. They've got partners that some are in their 60s, and that's not going to be appealing to them. So their true north might be something a little bit different. I think the point here is being really clear on what your true north is really important because it guides the set of choices.

Speaker A: No doubt. At what point do you think more of the same stops being a growth strategy and starts becoming a constraint?

Speaker B: Oh, well, just that your example was the perfect example. Right. That I'm, um, doing incredibly well. I could keep on doing this, but in some way it's not only constraining my growth, but in some way it's constraining my professional satisfaction. And I think more often than not, it's about that. Because the audience I think we're talking to in this podcast are, uh, really successful folks. There's no question that there's nothing we can tell them that would suggest that they're not successful as they are. So if they decide to upset the apple cart or they decide to look for more, it's because there is that fire in your belly, that something that entrepreneurial spark or that something that's not being satisfied. Great.

Speaker A: Yeah, I think it's. Sometimes it's a matter of time. Says to me, if someone finds something that works, it's a pretty sound business strategy to rinse, repeat, and keep doing it. Like, focus on what's essential, cut out the rest. Like you read any business book, it's going to tell you double down on what's working, cut out the rest, the 80, 20 rule, et cetera. So. But I think eventually you keep doing the same thing over and over again and it might still yield results. But is it yielding the growth? Is it yielding exponential results? And at some point does just doing the same thing, is it still, Is it still driving you in the same way?

Speaker B: Yeah. And I think a lot of times people don't really know what they're missing. Like, in other words, the growth strategy is working. I'm growing X amount per year. I'm living a good life. I'm, um, consistently in the top five advisors in my firm. It's working. And nobody could argue that it isn't. I think it's just more about a lot of times as advisors, one of two things. Either one of their friends move, a professional colleague that they respect, and they say, holy cow, he was here. Or she was here for 30 years. Like me killing it. He would have been the last person I would have thought with move. And then suddenly she does, and it makes them say, what am I missing? What did she see that I am not aware of? Or a lot of times these folks will, uh, uh, another example, I'll give you an advisor that I've worked with for many years, probably 25 years, who is top of the food chain, doing incredibly well. Never really thought about moving. Talked over the years, boy, it would be nice to build something of my own. But the truth of the matter is that success is. And the thought of having to go back to zero and build something from scratch, no way. But you and I came across an opportunity that was unbelievably compelling. And without going into too much detail about the opportunity, suddenly when we talked about that opportunity with this advisor, what he said was, you can't be what you can't see. Like, all of a sudden, you painted the picture of something that's really compelling. I didn't even know I wanted, but holy cow, now I know I really want it.

Speaker A: Yeah, it's. Yeah. Because something, this dream was made tangible. Uh, it put a face on something that this advisor didn't realize they were missing. I mean, I, uh, see this every day. This next question, I'd love to get your opinion. I feel like most advisors, they may sense something is off or something's changing or shifting under their feet, but they say, anyway, why do you think success is often the very thing that. That keeps advisors stuck?

Speaker B: Yeah, because I think it's more than good enough. And for most of us, most of the time, I might have that little voice in me or that little inkling that says, gee, maybe it could be better, or, gee, I wonder if, or something of the sort. But I have a zillion competing priorities. I'm a dad or I'm a mom or I want to Travel or I'm M. 60 years old or I'm filling any blank at any time. And I think that it's really hard to give up on that. And I think that the example we just gave of this advisor that saw an opportunity, a unique opportunity that solved for a lot of the things that he didn't even know he was missing. That happens more often than not. Uh, yep.

Speaker A: Uh, I agree. I think too, what happens is a lot of advisors think about moving as strictly a financial trade. It's my grid rate is this and my fees are that I can get 3 1/2x here, but only 2x is upfront. I have Y and deferred comp. And I think when advisors are thinking about that, which is a reasonable lens to look through in the day, they're business people. If the business is growing and they kind of have to place wired that they know how to get things done, it's much harder to justify that change. It's like people who sell their house top of the market, it's like, hey, it's this thing and keep growing and do you feel like you're missing out because you're leaving at this point in time? Like typically too when things are good, clients are happy. Like the reviews are easier. We see it a lot with like with the market being up. Like in 2025 the market was up almost 20%. Much harder for some folks to justify moving because they feel like whether it's artificial or it's real, that their business is really cranky. So I think that's a big part of it as well.

Speaker B: Yeah, and maybe another little spin on it is a lot of times to move is really from a financial perspective may only be marginally better in the short term. Whether it be because after taxes the amount of TAMs you get up front is not that much greater than the deal you could get by retiring through your firm sunset program. Or if you move, you're going to be leaving some clients behind. So if you factor in the breakage from losing clients and the short term upside, the Delta may not be that great. We see it a lot of times when an advisor is already independent and they're getting, they're at a net 60 or 65% payout and they're looking at something that gives them a 70, uh, percent net payout. And they say yeah, okay, so those extra basis points are nice, but is it nice enough? Is it worth the hassle? And the answer to that is it is entirely an inside job. Uh, for some that Delta, even if that Delta was only 2 cents would be more than enough to justify the change. And for others, if the delta was 2 million percent it wouldn't be enough. So what's dispositive, what's dispositive or determinate is how badly they want it, how badly beyond the financial piece and they want what another opportunity would give them. Either that I really have this fire in my belly and I love that term and I just can't solve for it. I can't extinguish that fire here. I can't feed that fire here or opportunistically. I want to be something I just can't hear. And I want it so badly that even if financially it's only marginally better in the short term, I'm willing to go through the hassle to get it.

Speaker A: No doubt. And one last point to put a bow on. Um, um, this segment is, I think there's also an element that advisors who are growing or they have a big pipeline. And to me, the best advisors always have a big pipeline. They always have the next big prospect. There's definitely some, I think, real fear that I'm going from growing 10% per year to reflexively choosing to make my life really hard for a couple of months to slow down growth, perhaps lose some of the pipeline, lose some of the big clients that just onboarded. And that's really hard to justify because the trade off is that much more apparent to them.

Speaker B: Yeah. Would you.

Speaker A: I don't really want it, but that's always going to be the case.

Speaker B: That's uh, the point.

Speaker A: The good advisors for the most part are always growing and always doing these things. So it's like running on a treadmill. It's same thing with like unvested deferred compensation. I have 2 million of undes deferred. It's so hard to walk away from. The counterpoint is you're always going to have that. If anything, it's just going to grow. So again, it's taking a step back to take multiple steps forward. Some people want that and are excited by it, some people aren't. But that's okay.

Speaker B: Yeah, and that's, I think that's the whole point. While we get paid to move people, our position and the relationships we've had for years with top advisors, every advisor is they trust us because we're never looking to just sell them on a hot opportunity. We'll bring opportunities to them and say, here's what's available, here's what the upside could be. But we know and respect better than anyone that you gotta really want it. It is a hassle. It's hard work to move. And you've gotta have a real confidence in your clients, your current clients, that they're gonna follow you. You've got to have real confidence that your pipeline will follow you. You know that what's not certain, you've got to have confidence that you can tolerate the risk and you've got to have confidence that Your team's going to follow you and that you've got the support you need, and not everyone has the appetite for it, nor should they.

Speaker A: Exactly. I mean, I would say there's two competing, I guess, thoughts that oftentimes go through an advisor's mind, and they're both extremely reasonable. The first one is the fear of change, but at the same time, it's the fear of staying exactly where they are for another 10, 15, 20 years. How do you think advisors can reconcile the tensions? Like the angel on one shoulder, the devil on the other. Like one super comfortable and safe, the other one is an unknown, one's exciting one, et cetera. So how do you reconcile that?

Speaker B: Well, first of all, the short answer is it takes years. The two examples I just raised, and I'll ask you the same question, are advisors that I've been talking to for 10 years, plus, in one case, it could be 15 or 20. So for 10 or 15 years, there was always a certain amount of angst, a certain amount of curiosity, but, uh, not at all a willingness to do anything about it. Until in one case, sort of something happened. Something happened that made them realize that they're paying an awful lot of money to their firm for value. They're not getting anymore, feeling limited. And so they decided to pick up their head and look elsewhere. In the other case, it was opportunistic, really was perfectly happy doing their thing and heard or saw an opportunity that sounded compelling and began exploring. Now, I don't know whether either one of these teams will ultimately move, so let's say that. But these conversations are many years in the making. So I think the point I'm making is that devil on one side and angel on the other are those two competing voices. And they exist for a long time until either, in some cases, they never get reconciled and the advisor just retires. And it is what it is. In other cases, they get reconciled. But sometimes five, 10 years after the voices begin to surface. And they don't surf, they don't happen, they don't get reconciled until something happens to force it.

Speaker A: Yeah, I also look at this concept as we'll call it a midlife career crisis. So, yeah, I'm 40 years old. Instead of buying three motorcycles and a Porsche and going skydiving, I'm thinking about my business. And sometimes I think people just wake up and say, wow, I'm. I don't really know what my identity is and I need to do something different. I need that additional spark. So I think sometimes, too, it's just either an age thing or a certain birthday comes up or it's just a moment of clarity that pops into the mind.

Speaker B: Totally agree.

Speaker A: Why do you think this feeling is shocking? Showing up now more than ever? Is it because of recruiting deals? Is it because of the movement toward independence? Is it something uh, else or something else?

Speaker B: Yes, yes. I think it's all of the above. And I think that's the cool thing. Valuations are at an all time high. So even if an advisor has zero interest in going independent, you have to be living under a rock not to know that your business has real value. That business outside of the constraints of a major firm is worth much more than it is on the inside. Now that doesn't mean that everybody should go independent or well, but the fact that those multiples are hanging out there and that uh, recruiting deals are at an all time high and they are. The fact that there is more optionality, which means an advisor, if they go out and explore, is more likely to find their personal version of utopia or something closest to it. The fact that movement begets movement, that's something we haven't talked about. But it's worth mentioning that uh, all you have to do is read Advisor Hub or um, just be sitting in your office and every day watch somebody you respect make a move. And so the more you see top advisors move, the more you say maybe there really is something else out there for me as well. And then you and I always say that the big firms are one policy change, one comp change, one mandate, one something away from frustrating the heck out of a large constituency. Because the bottom line is as long as you're an employee, you're vulnerable or captive to whatever choices the firm makes.

Speaker A: I think you're talk about in a very nice way what happened with UBS at the end of 2024. But we even see it outside of the wirehouses. There's independent firms that layer in new fees or they don't allow their advisors to text. There's always that risk that something bigs can come down the pike that motivates someone. I'll give you two other reasons why I think this is happening with more frequency. The first one is advisors careers are oftentimes longer either because they're bringing their kids into the business or the business is so lucrative. And if the business is mostly fee based and it's on autopilot, it's like why should I hang up the uh, the old boots when I can just work for another handful of years? So I think with longer advisor careers and the pot of gold at the end of the rainbow, which is either a big exit or a retire in place deal. I think advisors just grapple with more and they grapple with it for longer.

Speaker B: Yeah, you brought up a point. I'm um, so happy you brought it up. I'm sitting here next to my son, my next generation. I have said oftentimes that without my sons coming into the business, I don't know that I would have had the same relationship to the business as I aged, uh, as I got older. And I'm, I'll be transparent, I'm 63 years old now. If 10 years ago my sons had not decided to join me, I think that I might have said I'll work as long as it feels soulful and good and if something better comes along, great. But uh, it wasn't until they came along that I really began to think about everything through their lens. Like it was less about me because by the time I was 50, from a financial perspective, I could have left if I wanted to. But as long as my kids were in the business, there's no way I was going to do that. There was no way I wouldn't want what was the absolute best for the business. And I guess that's a long winded way of saying in uh, in an industry where there's so many multi generational businesses, father, son, mother, daughter, whatever it is, senior advisors that really care, even if they're not family, about their next generation when they begin to look at their business through the lens of their next generation. The technology may be good enough for me, but it's sure not cutting edge enough where they say things like the bureaucracy is killing me, but I work three hours a day or I have such a good life, I don't want to upset the apple cart. But then all of a sudden one day we get a call either from that senior advisor for whom it was more than good enough for years, or from the next generation that says this is not what I want. It may have been good enough for my dad and my mom, but it's not good enough for me. So as a long winded way of saying, I think that the next generation really forces the senior advisors, the elder states of G1, to grapple with whether or not this is good enough.

Speaker A: Yep, I'll answer my own question. First. Let me get your opinion. I feel pretty strongly about my answer. In thinking about our four to five point list here of uh, why this is a bigger deal now, I tap in with more frequency. The question for both of Us is which one do you think has the biggest psychological impact on advisors right now? I'm going to go first because I'm excited about my answer. I think by far it's practice valuations, by far. Because what's happening is advisors are reading news articles, hearing from their friend, getting cold called from corporate development folks at firms, and they hear what used to be just ludicrous multiples. These were multiples that were reserved for 100, $200 million revenue business are now getting paid to a, uh, three to $5 million practice. And any advisor, even ones who aren't super financially motivated. I think just hearing about this, knowing what's possible has a major psychological impact. It's making it that much harder for folks to say, you know what, it's comfortable, it's easy, I can retire here because the opportunity cost of staying put has accelerated that much. What do you think?

Speaker B: So unequivocally, and I am, um, money motivated for sure, so I agree with you. But at my stage and age, if I were an advisor, I would absolutely be, wouldn't be able to ignore the impact that maximizing enterprise value might have and how awesome it would be to be building a business that could be worth more. But I would equally, if not more so, be really concerned about a. How it would feel like is, am I going to be able to live the professional life, do what's soulful for me? Am I going to be able to build the business I want to? Is this going to be the business, the legacy I'm going to feel good about? Is this going to be the business that I want my sons to take over? And that to me would be equally important. And um, I'm making it about me, but I think that's what a lot of senior advisors would, would say.

Speaker A: No doubt. So for folks that are questioning their situation, what do you think is a question or three or four or five of the right questions they should start asking themselves before even thinking about making a move?

Speaker B: Yeah. Well, one is, so what's your true north? And even before, I mean question two, and I think what I just said, assessing your true north, figure out where your true north is. One, because question two is, what is it that's bothering you? What is it that you're frustrated by? And simultaneously to what extent does it frustrate you? Like how, okay, so I feel mildly annoyed that I have to do X, but is it enough to make me want to move? So being clear on that is important. But I think even before you begin to delineate how frustrated you are. You have to be really clear on what you want to be when you grow up. Like, what is it that would feel soulful? What are you trying to solve for? What are the parameters or realities that you need to take into account? You have a senior partner you'd love to do X, but you have a senior partner that you know is never going to want that. What. Whatever it is. So what is the true north? What are you frustrated by then? M? It's what risk appetite do I have? What risk appetite, and what appetite in general do I have for disruption to my life? How tolerant will I be if one of my clients doesn't follow me? Because that is really possible. How tolerant will I be if I spend a few months and I'm working harder than I've ever worked in my life, whatever it may be? And then I think it's about that question. What I want to be when I grow up is really what's dispositive of, um, do I want to be a business owner or am I a, uh, big corporate person? And that's just who I am. And I'm comfortable with leveraging the name that's on the door.

Speaker A: No doubt. I think an interesting one is asking yourself, if I stayed exactly where I am for the next 15 years, would I be proud of what I built? I think it's a really important one sometimes, too, when I'm, um, speaking with advisors who are worried about a transition. And honestly, people should be worried about a transition. It's terrible. It's there, there's no sugar coating. It's a lot of work. It's scary. It's a risk. You're disrupting your life, all your clients life, et cetera. But sometimes the. I'd say, like the reframe is the three months, four months, whatever it is, of backbreaking work that you put in, is that worth it for the next 10, 15, 20 years of doing, uh, something that really sparks you more? And I think, again, it comes back to your question of risk appetite. But I think just thinking about that is a lot of people get lost in the immediacy of the risk and of the work, but they forget to look beyond that work to what's possible on the other side of the rainbow

Speaker B: and how important it is to get it. In other words, I may be very clear that I would like to have X, I'd like to do Y. I would love I all the time. I'd love to be independent and build my own business. Boy, If I were 20 years younger or I was, whatever it was. So the point of the matter is you can be aware of wanting those things, it's admirable to want them, but whether or not you actually should go after them, that's an insight job, no doubt.

Speaker A: I think another one I like is which regret is bigger to you? Trying something and failing or never testing what's possible. I think that's a good one. Another kind of philosophical one.

Speaker B: Yeah.

Speaker A: All right, let's change gears a little bit here. So for successful, we'll say mid career advisors, why do you think the biggest risk is oftentimes not making the wrong move, but choosing the status quo by

Speaker B: default, Answering it from the perspective. We've had a lot of senior advisors that say, I look back at my career and if only I had made the move or gone to this 15 years ago. So I think that's the, uh, you get comfortable in the discomfort, it's easier to stay put. And then before you know it in your head, you're too old or you're too settled or you're too entrenched and you can't go, or it's too late to go, or in some cases you've got so much unbested deferred comp, it's too expensive to go. And so, uh, I don't think that's only about mid career. I think it's, you want to make sure that you've lived a professional life that's not filled with regret. That's really what I think.

Speaker A: No doubt about it. I think too the fear of making the wrong move, called buyer's remorse, if you will. I honestly don't really see it happen all that often. When I see it happen, it's because someone went to their second or third choice firm because they got paid an extra 10% of their production. That's where the wrong decision comes in. I usually find when advisors are thorough, they're thoughtful, they're making decisions for the right reasons, and there was a base level of motivation to do something different. You can't really make the wrong choice. And I think it's. But again, it's risk tolerance, et cetera. Let me give you two more questions here. What's one step an advisor can take today to create clarity without committing to change?

Speaker B: Well, that question is the fundamental definition of how you and I see the world. So we traffic in advisors that are 10 years, 20 years from making a move or may never move. To us, it's just about the relationship. Like that may sound sort of foofy and crazy. But it is the truth. And so those conversations are all about being self aware. That's number one, like know thyself, being self aware. What's important to me, what can I live with, how much risk tolerance do I have, et cetera. And then it's also about having a clear understanding about what's possible. So continuing to have conversation with people like you and I, continuing to read Advisor Hub or whatever it is about transitions that happen, understanding the opportunities that are out there is not necessarily because you're going to go take one of them or you're going to change, but knowledge is power. It empowers you where you are. It's competitive analysis. And that's smart. That can only serve you well.

Speaker A: Yep. Yeah, I completely agree. One last question here. And I think probably a lot of people listening to this are thinking like this, like personification of an advisor or advisors that we're describing are, uh, they just complainers, are, uh, they just being ungrateful? On the one hand, there's probably folks that are early in their careers, like working their butt off who are saying, hey, just be grateful for what you have. It's really hard to get to where you are. So why are you looking at gift horse in the mouth? So what would you say to that line of thinking? That questioning the status quo or questioning something that's really good, does that mean someone's ungrateful for restlessness?

Speaker B: Oh my God, no. I think that the smartest and most successful and honestly most grounded and grateful people, uh, are those that question the status quo. You can be, can and should be simultaneously grateful for what you have. We say to advisors all the time, were it not for Merrill Lynch's training program that catapulted you to the seat you're in now to become a 3 million, 5 million, 7 million dollar advisor. You may be mad at Merrill lynch now, or you may want something more than Merrill lynch can give you today, but it doesn't mean you're ungrateful for what Meryl gave you. And that's the answer. I think that you can be grateful for this wonderful life that you've been afforded, but at the same time aware of the fact that you may want more. And that's a healthy, wonderful thing.

Speaker A: Completely agree. Yeah. I mean, it's similar to any large Fortune 500 company. Right? You think of like Apple, how many times they've reinvented themselves or everything that's happening with AI. I think a big part of this too is future proofing. Right? It's okay. It's not being ungrateful. It's more I'm, um, taking proactive action to make sure I do have a business in 15 to 20 years and that, um, I'm positioning myself and my clients to do the best possible work together. This is the fun topic. It's obviously a something in the mind of a lot of advisors. It comes up probably in every group that we ever consult with, whether they're a wirehouse advisor, they're a private banker, they're independent, et cetera. So I think a lot to learn here. My big takeaway from today is it's okay to want more. There's nothing wrong with you for wanting more. At the same time, there's nothing wrong about being comfortable. Thank you very much for Amen.

Speaker B: My pleasure. Good topic.

Speaker A: Thank you for joining us. We'll be back with a new episode next week, so be sure to listen in.

Speaker B: As a financial advisor, you hold yourself to the highest standards of integrity, honesty and credibility. You are successful because you take your professional responsibility seriously and are dedicated to your clients. But are you living your best business life? Are you? Are your goals aligned with your firm's or could a better option exist? Should I Stay or Should I Go? Is a book written with you in mind. It's a self guided journey that walks you through the key steps that we take with our advisor clients. This strategic thought process and roadmap to professional self discovery is designed to help you ask the right questions and think critically and objectively whether you're considering change or not. Learn how to get your copy@diamond-consultants.com the book. Sam.