Ask Brad: What is the Best “Independent” Path?

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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I have participated in several industry panels over the years. A question I am often asked is, “What size practice do you need to start your own RIA?”

I always start my response by saying advisors should ignore anyone that gives them a quick or precise answer to that question.

You can start an RIA with $0 AUM, just as you can start one with $5 billion.

There’s a worthwhile conversation to be had about where it makes most sense to have your own RIA. But it is technically doable at all levels.

Anyone who gives you an immediate AUM figure likely has an agenda behind doing so.