Is Bigger Always Better in Financial Advisory Firms?

By Joe Dowdall, CFP®, RICP®, CRPC®, CCFC 

Is bigger always better when it comes to financial firms? In this video I discuss the differences between large and small financial firms to help you make an informed choice.

5 Key Takeaways:

  • Diverse Offerings: Small firms are leveling the playing field by providing access to high-tech tools and resources once only available at larger institutions, making cutting-edge options accessible to all.
  • Streamlined Flexibility: While large firms can sometimes be bogged down by complex bureaucracy, smaller firms can often offer quicker, more nimble decision-making to meet your needs fast.
  • Custom Care at Every Step: Want a tailored approach? Small firms excel in offering relationship-driven guidance, custom strategies, and support that are crafted around your unique goals, ensuring you feel like more than just a number. 
  • Innovative Power: It’s All About YOU: Ultimately, whether you go big or stay small depends entirely on your personal financial goals and service preferences. The best firm is the one that aligns with your priorities.

If you’re weighing your options between large and small financial firms, this video is for you.

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Transcript

Is Bigger Always Better in Financial Advisory Firms?

We’ve all heard that saying, everything is bigger in Texas. The question is, is bigger always better? Well, when it comes to barbecues and state fairs, I think absolutely, bigger is better. But what about your financial advisory firm? Is a bigger firm always better than a smaller firm? Or is a smaller firm better than a bigger firm?

Advantages of Larger Financial Firms

My name is Joe Dowdall, and I’m a financial advisor at Worth Asset Management. While our firm offers a wide range of wealth management services, we focus on building relationships with each and every client. As a former school teacher, I can appreciate that clients are not just numbers on a page, but real people with real financial futures.

Today, I would like to talk about the difference between working with a large firm and a small firm. Let’s start with the perks of working with a larger firm. Often, larger firms have access to a wide range of investment products and research tools. Fortunately, with the advent of the internet, we now have online resources that are available to almost everyone. Also, oftentimes, large firms can be one-stop shops. So, if you’re looking for someone to prepare your tax return and help you with your investments, you may find a large firm is available to do that.

Disadvantages of Working with a Larger Financial Firm

What about the downsides of working with a larger firm? In my opinion, the number one downside is the lack of personalized service or being able to create a relationship with your advisor. And don’t forget about the red tape. Oftentimes, large firms are severely impeded by bureaucratic roadblocks. The smallest decisions might have to jump through multiple hoops before it trickles down to you.

Why Smaller Financial Firms Are Gaining Popularity

Now, let’s look at the pros and cons of working with a smaller financial firm. Believe it or not, smaller firms are actually gaining market share because they can now deliver the same bells and whistles that were once only available to larger firms.

The Benefits of Building a Relationship with a Smaller Financial Firm

It’s my opinion that the number one perk of working with a smaller firm is being able to create a relationship with your financial planner.

Challenges of Working with a Smaller Financial Firm

Now, there are some downsides of working with a smaller firm. If your advisor retires, it may be challenging to replace that individual. Also, smaller firms may have less access to research tools and investment resources. But as I mentioned, that is really going away now that online resources are almost universal.

How to Choose Between a Large or Small Financial Firm

The right choice ultimately comes down to your individual needs. If you decide to work with a smaller firm, Worth Asset Management is here to help.

Worth Asset Management: Personalized Financial Services for Pre-Retirees and Retirees

As a fiduciary, that means we put your interests first. Our tax-focused planning is tailored to pre-retirees and retirees in Dallas, Texas, and beyond. You can get started today with a free, no-obligation, 15-minute introductory call.

Get Started with a Free Financial Consultation Today

You can reach me at 469-423-1989 or email me at joe@worthassetmgmt.com.