Taking the highest upfront check or calculating out your apparent newfound riches from a suspiciously high payout will undoubtedly be mentally rewarding in the short term. Over the long term, you are assured to be disappointed, though.
What is the AUM needed to be my own RIA?
Custodians, technology vendors, compliance firms, service platforms, TAMPs, etc., all make for a wonderful ecosystem of solutions from which advisors can choose. But it also makes for a complex and intimidating review and selection process. It doesn’t have to be.
The initial hoopla, particularly over the expanded use of client testimonials, has been overdone.
Ask someone a question in which the respondent has a vested interest in how it is answered, and you know what the answer is before asking it. I see this when I am talking to advisors about the RIA model.
I want to share a math formula I often discuss with advisors. This is for anyone considering transitioning their practice to the RIA model or is already working through those steps but is struggling to reach the finish line.
Unwritten rules have as much power as written ones. That is true of padding a big lead in baseball and of whether RIAs need to have the CFP designation.
No advisor has asked me about the plight of the prisoners in The Shawshank Redemption. But I am frequently asked what an advisor should expect as they leave their current firm to transition to the RIA model.
The overlords of clickbait said I need to make this a highly partisan article to maximize readership.
You absolutely can start your own RIA even if you are not yet or never desire to become 100% fee-based.
This question is not only one of the most frequent questions I get from advisors, but it is also one of my favorites.