What Are the Benefits of “Breaking Away” Your Financial Practice?

Posted by adaniels in Blog on September 5, 2012

Are you ready to start your own independent financial advisory practice? Read what Sanjeev Sardana has to say on the subject. Sardana writes for Forbes.com that although he “always had a “rebellious streak,” he did work for other companies like Donaldson, Lufkin & Jenrette and Credit Suisse. 

However, he says that he found that when working for a big brokerage firm, he “did not have the freedom to always act first in my clients’ best interests,” and had to instead put his employer’s interests first. So in 2006, Sardana founded his own company, BluePointe Capital Management, and did what his industry refers to as “breaking away.” That means that instead of signing up with another brokerage house, he became a Registered Investment Advisor (RIA.)

While there are some big advantages to working for a brokerage house, being an RIA also has some benefits as well. Sardana says that he no longer has to deal with those conflicts regarding what is good for his employer, as opposed to what is good for his clients.

In addition, Sardana says that he and his team “make all the decisions when it comes to investing strategy and how we implement it,” which takes out the middle man. Of course, going it alone isn’t for everyone, and it depends on your own temperament.

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