Ask Brad: Brokers Cannot Depend on Managing Assets

This is the latest installment of a regular column to answer questions from advisors who are considering transitioning to an RIA model. To see Brad’s previous articles, click here. To submit your question, please email Brad here.

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An advisor at one of the large traditional brokerage firms recently asked me if he could manage his clients’ assets on a discretionary basis if he transitioned his practice to the RIA model.

Having never been in the RIA model, it was reasonable for him to ask.

His reason for inquiring is a cautionary tale for advisors at the large traditional brokerage firms.

Advisors offer different value propositions for their clients. Some provide deep financial planning, others concentrate on a narrow investment focus, others choose from various additional approaches.