5 Questions to Ask Before You Switch Firms

Characterizing 2022 as eventful would be an understatement. Inflation is at 40-year highs, driven by government spending, supply chain issues and commodity price spikes exacerbated by the war in Ukraine.

At the same time, the Federal Reserve has been aggressively raising interest rates to tame inflation without triggering a deep recession. All this has caused the most prolonged stock market pullback since 2008, with all major indexes in bear market territory.

So, is this the right time to change firms? It depends on your reasons.

Regardless of what ambitious recruiters say, there is never an ideal time to make such a major move. Repapering clients and explaining your motives for leaving your current situation is never an easy process.

Doing it during these market conditions may increase the degree of difficulty. However, switching firms, even now, might be the best option for some advisors.

1. What is driving your desire to change?

Changing firms, even during the best of times, is not something that should ever be done on a whim. If you are relatively content with your firm, it’s probably not worth making a move, regardless of the check that’s being waved in front of you.

But you will know it’s time to move if there is a major catalyst that directly affects your current and future business prospects.

2. Are you feeling marginalized?

In a quickly consolidating industry, many firms focus their resources on growing by acquisition instead of supporting existing advisors. It may be time to move if your calls to management are no longer being returned and you feel more like a number than a productive team member.