The emotional and financial freedom many advisors have been waiting for is set to arrive in early 2016. That’s when the notes attached to many retention packages—offered in the wake of the 2009 financial crisis to more than 5,000 advisors at the wirehouse firms—are set to expire.
These retention packages were structured as forgivable loans, thus the amount of money most advisors would owe back if they were to leave their firm prior to the expiration is negligible at this point. And the transition packages being offered to advisors at any production level are at record highs, and these packages would more than make up for what one owed for leaving early. So for many advisors, financial ties aren’t binding; it is emotional freedom that will likely have the greatest impact.