A conversation with Louis Diamond

It’s a question that advisors often ask themselves when considering a move:

“Should I go for the short-term windfall or bet on the long-term potential?”

The merit of forgivable loans tied to recruiting is an ongoing debate in the wealth management industry. The decades-long convention for advisors considering change (especially those in the W-2 world) is to monetize the business by negotiating a lucrative transition bonus with competing organizations.

Yet those on the independent side often talk about building long-term enterprise value and controlling one’s own destiny instead of focusing on deals.

Louis Diamond explored the topic in an article for AdvisorHub, Advisor Recruitment: The Bull and Bear Case for a Forgivable Loan and given its popularity, we decided to take a deeper dive in this podcast episode.

Is it wrong for an advisor to seek monetary remuneration for taking the risk and going through the hard work of a transition? Absolutely not!

Is it better for advisors to self-finance their move and focus on the longer-term economics of independence? Possibly.

Mindy and Louis consider both sides of the argument, including:

• The current state of deals—and how they differ depending upon firm and channel.
• The impact of advisor mindset—and how it has influenced change in the industry.
• The real value of a recruitment deal—and how to reconcile leaving potentially life-changing money on the table when going independent.
• The short-term windfall vs the long-term potential—and how to think through what’s best for your business life.

This episode may not settle the debate over whether you should opt for a forgivable loan or not—but it will give you some food for thought when considering what’s right for you.

Podcast: Play in new window | Download (Duration: 31:01 — 42.6MB) | Embed

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Download a transcript of this episode…

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