While it's true that actions speak louder than words, the fact remains that words are easier. So it should be no surprise that wirehouse advisors talk about going independent much more than actually walking out and making it a reality. Many can talk the talk, but then they balk to walk, held back by the practical considerations and a good bit of fear. The question now, though, is whether they will be more inclined to make that move in this new age of Wall Street.

The Cerulli Quantitative Update: Advisor Metrics 2008 examines this gap between advisors who showed an interest in changing jobs and those who really took the leap. According to data prepared by Cerulli senior analyst Scott Smith, when brokers were asked where they would like to work if they were making a career change, 65% said they would be interested in going independent (almost evenly split between an independent broker-dealer, 33%, and a registered investment advisory firm, 32%).

However, in reality, when wirehouse advisors leave, only 27% make the transition and head off to an independent broker-dealer or RIA. An additional 44% go to another wirehouse while 17% go to a regional firm.

Indeed, others in the industry can corroborate the discrepancy. Mickey Wasserman, of Michael Wasserman and Associates, a recruiter who works with financial advisors, says, "about 30% of the brokers who say they are fed up [with wirehouses], actually make the move, which requires due diligence and a lot of soul searching." Many of them are enthused about independence, but then "recognize the realities as they start to interview," he says.

A captive-employee at a wirehouse has a handful of destinations to choose from, explains Chip Roame, founder of Tiburon Strategic Advisors. First, is another wirehouse, which will feel a lot like home. The second choice is to join an independent broker-dealer, which will seem much more entrepreneurial. "You will own the business. You need to buy a copy machine and a coffee pot, and hire a secretary and deal with insurance and payroll," Roame says. "Payout may go down a bit, but net take-home pay may not."

The third option would be to set up one's own broker-dealer, using a clearing broker such as National Financial or Pershing. That structure provides more control, but also involves capital requirements.

The fourth alternative, which is to set up as a fee-based RIA, may or may not be realistic for brokers who have always worked on commission, and are less likely to be fee-only. The same commission issues would affect advisors who join somebody else's RIA.

Finally, some large RIAs, like Triad Advisors, have been moving toward a hybrid fee-commission model to support dually-registered advisors. Custodians, like TD Ameritrade, Schwab and Fidelity, provide the platform for the fee-based side. "In the past 12 months, we've seen a significant number of brokers choosing this route," says Mark Mettelman, Triad's president and chief executive officer. "Brokers need not establish their own company, but can come under our corporate RIA."

Advisors have been discussing the idea more actively of moving on in their careers since early 2008, not just this autumn. Wasserman also points out that in such turbulent markets, FINRA may be inclined to impose stricter disclosure rules. One day, you may be obliged to divulge to clients any signing bonus, or the amounts of forgivable loans.

There are several key factors behind the decision to go independent. Remuneration is always critical. Golden handcuffs, consisting of restricted stock or options, used to entice brokers to stay put, but they have lost much of their value as wirehouse stocks have been pummeled.

"Brokers have seen their own net worth murdered. Big producers may have major stock positions in their firms," says Bill Willis, of Los Angeles-based Willis Consulting. "They may be tempted to go elsewhere to replenish, especially since they are embarrassed by their own firm's inability to perform and manage money."

And while support systems at wirehouses do make life easier, other broker-dealers have established better outreach programs to help transitions. Smith notes some of the functions that broker-dealers are now equipped to take over: operations, like software suites and customer relationship management (CRM) systems; performance reporting and statement generation; office space rent; health insurance and payroll. "They can deal with every small business need, from the ground up," Smith says. "The best way to grow a new business is to spend more time prospecting new clients and serving old ones. If you're busy shopping for desks and chairs, you have less time."