How Financial Advisors Successfully Break Away to Independent RIA: Key Strategies for Client Retention, Trust Building, and Tech Integration in 2026

The shift toward independent registered investment advisor (RIA) models continues to accelerate in 2026, driven by advisor desire for greater autonomy, transparent fee structures, and direct client alignment. Industry data shows RIAs are projected to manage about 33% of all advisor-controlled assets in the U.S. this year, reflecting sustained momentum in the independent channel. Recent transitions, including those spurred by major consolidations like the 2025 Commonwealth Financial Network acquisition by LPL Financial, have prompted hundreds of advisors to launch their own firms or join supportive platforms.

Three experienced professionals share practical lessons from their journeys: Adam Spiegelman of Spiegelman Wealth Management, Brett Bernstein of XML Financial Group, and Aaron Klein, founder of AI-driven wealth tech firm Contio.

Deciding on Independence: Research and Conviction

Adam Spiegelman, a California-based second-generation advisor, had contemplated independence for years. The announcement of Commonwealth’s sale to LPL in March 2025 crystallized his choice. After extensive due diligence—consulting vendors, recruiters, and fellow advisors—he found no strong deterrent.

“I searched thoroughly for reasons to stay,” Spiegelman explained. “I wanted convincing arguments against launching my own firm, but none materialized.”

By mid-2025, he established Spiegelman Wealth Management as an SEC-registered RIA, managing around $450 million in assets. The move emphasized core advantages: full independence from proprietary products, elimination of hidden fee negotiations, and direct vendor and custodian relationships.

Explaining these changes to clients required careful framing. Spiegelman highlighted enhanced transparency, reduced conflicts of interest, and a structure fully aligned with client interests. “Independence means no undisclosed backroom arrangements,” he noted. “Clients now see direct connections to custodians and providers.”

Navigating Operational Hurdles

Even thorough preparation couldn’t eliminate all obstacles. Transitioning to a major custodian brought paperwork delays, confusing e-signature processes, and technical glitches that confused some clients and required Spiegelman to troubleshoot personally.

“Large institutions can feel bureaucratic,” he observed. “Clients encountered unclear instructions or signing issues, leading to frustration and minor errors like incorrect addresses.”

Though limited to a handful of cases, these issues proved embarrassing and time-consuming during account repapering. Advisors planning similar moves should anticipate such friction and build buffers for client support.

Lessons from Multiple Transitions

Brett Bernstein, CEO and co-founder of XML Financial Group in Maryland, brings perspective from two major shifts: departing Merrill Lynch for LPL in 2004, then leaving LPL to form his RIA in 2016 under the Focus Financial network.

He views the initial jump from a recognizable wirehouse brand to a less familiar independent setup as the toughest client conversation. “Clients often associate big names with security,” Bernstein said. “They need reassurance that their advisor remains the same and assets stay protected.”

By his second transition, clients were familiar with independence. Still, he stresses early preparation: reviewing transferable holdings, identifying non-transferable proprietary products for liquidation, and understanding non-solicitation agreements or contractual restrictions.

“Know exactly what can move and what must change beforehand,” Bernstein advised. “Compliance and product mapping prevent surprises.”

When discussing the change, frame it around client benefits. Most investors respond positively when they see the decision stems from thorough analysis and commitment to their interests. “Clients want to know: Are you still handling my finances? Is my capital secure? How does this improve my experience?” Answering these directly often secures strong retention.

AI’s Emerging Role in Breakaway Planning

While Bernstein’s transitions occurred before widespread AI adoption, newer tools offer significant support. Spiegelman relied heavily on ChatGPT during research, formulating smart questions for attorneys, evaluating tech vendors, and building his technology stack.

“I used it extensively to compare proposals and organize analysis,” he said, though he always conducted final verification manually.

Aaron Klein, who launched Contio in 2025 after founding Nitrogen (formerly Riskalyze), sees AI transforming high-stakes client meetings during transitions. Contio functions as an AI-powered meeting operating system, providing strategic guidance, instant recall of past discussions, and automated follow-up tracking.

“The breakaway discussion is pivotal,” Klein emphasized. “Advisors must clearly articulate their ‘why’—how independence enhances client outcomes.”

He envisions next-generation AI acting as a meeting strategist, memory enhancer, and virtual chief of staff—without inserting barriers between advisor and client. “The best tech disappears into the background, letting genuine relationships shine.”

Broader Takeaways for Aspiring Independent Advisors

Industry reports indicate ongoing advisor movement, with many seeking freedom from corporate constraints amid retirements and platform changes. Successful transitions hinge on:

• Proactive education about independence perks (transparency, customization, alignment).
• Robust preparation for compliance, asset transfers, and logistics.
• Client-centric messaging that prioritizes safety, continuity, and advantages.
• Selective use of technology to streamline planning and interactions.

For advisors considering a breakaway in 2026, these insights underscore that trust, meticulous execution, and a compelling narrative remain essential to retaining and growing client relationships in the independent space.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.