Some of financial advisors' biggest preconceptions about switching to the RIA space -- from worries about insufficient AUM to fears about lower earnings and complex technology requirements -- were highlighted in a new report from TD Ameritrade.

But the biggest myth, say advisors, is one that didn't even make the list: Wirehouse advisors tend to think there are two options -- working at a wirehouse or going completely independent, says Lance Lipset, who left Merrill Lynch just more than a year ago to start an RIA in Basking Ridge, N.J. “In actuality the independent side is a huge umbrella, under which there are many ways to skin the cat -- working for an independent broker-dealer, an established RIA or hybrid RIA or creating your own company customized specifically for your clientele,” Lipset says. “I don’t think perception has caught up to reality in terms of that.”

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