Transition To RIA Podcast: Recent Episodes
Brad Wales
Brad Wales, founder of Transition To RIA (TransitionToRIA.com) discusses WHY and HOW to transition your financial advisory practice to the Registered Investment Advisor ("RIA") model. This question/answer style podcast pulls directly from the hundreds of RIA related questions Brad has been asked over the years. With nearly 20 years industry experience, including direct RIA related roles in compliance, finance and business development, Brad has become the go-to expert for everything advisors want to learn and understand about the RIA model. Brad's firm, Transition To RIA is completely independent of any one solution, thus he is able to provide impartial advice and guidance across all of the possible pathways into the model.
We often hear about “breakaway” advisors.
That is commonly understood to refer to wirehouse advisors “breaking away” to setup their own independent practices.
It’s one of the main reasons the RIA channel has been, and continues to be, the fastest growing channel in the industry.
But why do we never hear about independent advisors going in the other direction to the wirehouse model?
Why does the river only run in one direction?
In this episode of the Transition To RIA question & answer series I explain:
- Why the current trend was not always the case.
- What caused the trend to now occur (for a decade plus now.)
- What the main motivators are for wirehouse advisors to make the change.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/why-do-advisors-leave-the-wirehouse-model-for-the-ria-model/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors between $50M and $1B understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
A typical RIA “tech stack” is comprised of 3 core pieces of software:
- CRM
- Financial Planning
- Portfolio Management
But what exactly does the generic sounding “portfolio management” tool do?
Considering it is typically by far the most expensive piece of a tech stack, it’s important to understand the role it would play in your practice.
In this episode (#136) of the Transition To RIA question and answer series I explain:
- What a portfolio management tool is.
- How these tools came to be.
- How they align with other parts of a tech stack.
- And in some scenarios, whether you even need one to begin with!
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/what-does-the-portfolio-management-tool-in-an-ria-tech-stack-do/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors between $50M and $1B understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
Choosing a custodian to hold your client assets is one of the most important decisions you’ll make when transitioning your practice to the RIA model.
While it might at first seem as simple as picking from the “Big 3” (formerly “Big 4”) custodians, the reality is there are close to a dozen custodial providers to potentially choose from.
Differentiators amongst them include: AUM minimums, pricing, approach to technology, value proposition, service offerings, etc.
In the latest episode (#135) of the Transition To RIA question & answer series I discuss how these variables will factor into your custodial decision.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/what-is-the-best-custodian-to-use-with-your-ria/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors between $50M and $1B understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
In this episode (#134) of the Transition To RIA question & answer series we expand upon five critical ways advisors can make mistakes when transitioning their practices to the RIA model, and how to avoid them:
- Not thoroughly researching the RIA model to understand if it is a fit for your practice;
- Not thoroughly researching your options of how to transition into it;
- Misjudging your client loyalty;
- Not getting proper legal advice on how to navigate the departure from your current firm;
- Not following a time-tested approach on how to navigate a transition successfully.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/what-are-the-biggest-ways-to-screw-up-a-transition-to-the-ria-model/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors between $50M and $1B understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
There is a well established process for how to breakaway from a wirehouse, to transition your practice to the RIA model.
This process has been refined within the industry over many decades, and thousands of transitions.
In this episode (#133) of the Transition To RIA question and answer series I outline the three main steps involved, and the variables within each step that are important to be aware of and consider
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/what-are-the-steps-involved-with-breaking-away-from-a-wirehouse-to-transition-to-the-ria-model/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors between $50M and $1B understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
Attracting new clients is the lifeblood of any advisory firm.
One of the advantages of transitioning your practice to the RIA model is the increased flexibility (as compared to most captive advisor models) in how you can brand and market your services.
An example is the ability to establish paid referral relationships with, typically, centers of influence.
These are referred to as solicitor agreements.
But not all RIAs are created equal.
In this episode (#132) of the Transition To RIA question and answer series I explain when and how such arrangements are typically used.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/what-is-an-ria-solicitor-agreement/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors between $50M and $1B understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
Being able to control your so-called “local expenses” as an RIA, or 1099 when joining an RIA, comes with additional responsibilities, but also significant benefits to match:
- Only pay for the resources you actually use.
- The ability to run as lean or extravagant of a practice as you wish.
- Determine the composition of your team.
- Benefit from controlling your local real estate footprint.
On this episode of the Transition To RIA question and answer series I expand on these benefits, and others, with respect to controlling your local expenses.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/what-is-the-benefit-of-controlling-your-local-expenses-as-an-ria/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
Should you consider joining a “roll-up” firm?
But what exactly are they rolling up?
All of your practice?
Some of your practice?
Do they take operational control of your practice?
Is this a succession play?
As I frequently lament about the term “hybrid” as well, the term “roll-up” is often used to describe different types of RIA firms, providing very different solutions for advisors.
In this episode (#130) of the Transition To RIA question & answer series I explain several different ways “roll-up” firms are structured and when it might appeal to you.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/what-is-an-ria-roll-up-firm/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
“You won’t be able to use Alts (alternative investments) if you transition to the RIA model.”
“Ok, maybe that’s no longer the case….but you won’t have access to as many investment options as we have in the large broker/dealer world.”
“Well….maybe that’s no longer true either, but our large scale gets us better availability/pricing than the RIA space.”
“Damn it…..that’s no longer true either. You RIA folks now often have better options, pricing, etc. than we do!”
This progression is how using Alts in the RIA space has generally played out. While advisors at large wirehouse type firms once had the advantage when it comes to Alts, in most cases it is now the opposite.
In this episode (#129) of the Transition To RIA question & answer series, I explain how Alts are used in the RIA model and why it is often to your advantage.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/can-i-use-alternative-investments-as-an-ria/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
A benefit of transitioning your practice to the RIA model is gaining access to a wider array of investment solutions, technology offerings, and service providers.
But with some variables of your practice, you might desire to maintain a status quo.
Advisors that currently outsource their asset management to 3rd party models or managers often prefer to maintain similar solutions upon transitioning.
In this episode (#128) of the Transition To RIA question and answer series, I explain the variables and considerations involved with maintaining your existing approach to managing assets.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/can-i-keep-using-the-same-investment-models-or-smas-that-im-using-now-if-i-transition-to-the-ria-model/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
Participants in our industry often talk about moving to another broker/dealer.
But when they say “broker/dealer” they are also often referring to an RIA.
Or conversely, you’ll hear voices discussing joining or starting an RIA.
Yet that too, could also potentially involve a broker/dealer as well.
Confused yet?
In this episode (#127) of the Transition To RIA question and answer series I explain the difference in these two structures and how the terminology is used properly.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/what-is-the-difference-between-an-ria-and-a-broker-dealer/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
The RIA model typically provides far more flexibility with how you can charge your clients for your services.
AUM, flat, subscription, hourly are some of the options.
Even the most used “AUM fee” comes with additional flexibility.
- The frequency in which you charge the fee.
- What pricing tiers you use.
- Whether you charge in advance or arrears.
- Whether the fee is based on a single date in time (ex: quarter end), or an average of the period.
- The ability to pair an AUM with another fee type (ex: flat fee.)
In this episode (#126) of the Transition To RIA question and answer series I explain the different fee types most often used in the RIA model.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/what-type-of-fees-can-i-charge-my-clients-in-the-ria-model/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
How difficult is a transition to the RIA model?
It’s difficult enough that some advisors and teams can never bring themselves to cross the bridge.
Whereas other advisors and teams learn how to navigate the process, and successfully do so.
There are nonetheless still “difficult” parts to a transition:
- Overcoming the uncertainty of a model you’re not yet familiar with. (This is solved through education.)
- The workload involved with putting all the pieces into place, particularly down the stretch as the transition nears.
- The sprint to move your clients post-launch.
In this episode (#125) of the Transition To RIA question & answer series I explain how to successfully navigate these “difficult” steps.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/how-difficult-is-a-transition-to-the-ria-model/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
You don’t have to be 100% fee-only to transition your practice to the RIA model.
There are potential ways to “solve” for your remaining legacy commission assets.
One potential way is to utilize an “RIA-Friendly Broker-Dealer.”
But what exactly is an RIA-Friendly Broker-Dealer?
How does it work?
Is it available for you to use?
How much does it cost?
In this episode (#124) of the Transition To RIA question and answer series, I explain what an RIA-Friendly Broker-Dealer is and when you might consider using one.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/what-is-an-ria-friendly-broker-dealer/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
So, you want to start an RIA?
You want the better economics that come with it?
The increased flexibility you’ll have with your practice?
But are you aware of the additional responsibilities that come with it as well?
As advantageous as the RIA model is, there is no free lunch.
It’s important to understand what the additional responsibilities are, to determine if they are something you are able/willing to accommodate.
And with your specific situation, whether the added benefits of the model outweigh the added responsibilities.
In this episode (#123) of the Transition To RIA question & answer series, I explain what the additional responsibilities are of having your own RIA.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/what-additional-responsibilities-come-with-your-own-ria/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
Advocates of the RIA model will often passionately proclaim “THE PAYOUT IN THE RIA MODEL IS 100%!!!”
With such generous economics, the RIA path must surely be best, right?
For many advisors, it is the best path to take. But boastful headline numbers alone are not what determines that.
For starters, it’s not a “payout” at all. As your own RIA, you’re simply receiving the fee revenue you generate from your clients for the value and services you provide for them.
From that revenue, you must then deduct the expense associated with providing that value.
Then with multiple variables now involved, you must be careful to do a true apples-to-apples comparison to what “payout” you have currently.
In this episode of the Transition To RIA question & answer series I explain how the 100% “payout” in the RIA model works and how it would look for your practice.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/is-the-payout-in-the-ria-model-really-100-percent/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
You studied for months to take the Series 7.
You anxiously sat through the multi-hour test. Perhaps with your livelihood on the line.
You finished the test and nervously awaited the result.
You passed!
Years, if not decades have now since past.
You’re considering transitioning your practice to the RIA model, but don’t want to “lose” the 7 you worked so hard for all those years ago.
But do you have to?
In this episode of the Transition To RIA question & answer series I explain if you must drop your 7 to go RIA.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/do-i-have-to-drop-my-series-7-if-i-go-ria/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
“Platform fees” in our industry are the “resort fees” of the hotel industry.
Just as a hotel room rate can be distorted by the addition of mandatory resort fees……payouts (particularly at independent broker/dealer models) are frequently distorted by additional platforms fees.
The existence of a fee by itself is not necessarily a bad thing, provided the value and services received in return are commensurate.
The first step in determining that is identifying when platform fees are present.
While such fees are most often associated with independent broker/dealer models, there are scenarios where they could be applicable in the RIA model as well.
In this episode (#120) of the Transition To RIA question & answer series, I explain when platform fees exist in the RIA space.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/are-there-platform-fees-in-the-ria-model/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
If you are an advisor at a firm that utilizes deferred compensation as part of the comp plan, ask yourself why your firm is doing that.
If the value and resources they provide you are as superior as they claim to be, why would they need arbitrary barriers to keep you from leaving?
Wouldn’t you simply want to stay?
Regardless of the spin, deferred compensation is a retention tool to benefit the firm, not to benefit their advisors.
So how best can you manage this reality if you are considering transitioning to the RIA model?
In this episode (#119) of the Transition To RIA question and answer series I explain how to navigate the potential loss of deferred compensation.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/how-to-make-up-for-lost-deferred-comp-when-transitioning-to-the-ria-model/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
I am often asked, “How large a practice do I need, to have my own RIA?”
Equally important is the other end of the spectrum as well, “Is my practice too large to potentially join an existing RIA?”
There are three main pathways to transition your practice to the RIA model:
- Start your own RIA.
- Join an existing RIA.
- Utilize a solution that is essentially in the middle of these two.
There are pros/cons to all three approaches.
But is there a point where you might be too large for one of them?
In this episode of the Transition To RIA question & answer series (#118), I explain if there is a point where you are too large to join an existing RIA solution.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://transitiontoria.com/is-my-practice-too-large-to-join-an-ria/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
A common misconception about the RIA model is that you must be 100% fee-only with your practice.
While many RIAs are indeed 100% fee-only, and others aspire to eventually be, there is no requirement to do so.
Many RIAs operate under a hybrid arrangement, allowing them to continue servicing legacy and/or new brokerage relationships.
Other RIAs work to slowly transition their current fee/commission practice towards a fee-only structure.
In this episode (#117) of the Transition To RIA question and answer series, I discuss several approaches RIAs use to “solve” for their remaining commission assets.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/how-to-solve-for-your-remaining-commission-assets/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
You’ve spent months researching the RIA model.
Months performing due diligence.
Months planning for the actual transition.
The day to transition arrives.
You resign from your firm.
You pick up the phone and call your first client to tell them about your new plans.
But what do you say?
How should you say it?
What might your clients say?
In this episode of the Transition To RIA question and answer series, I provide 9 tips on how to explain to clients your transition to the RIA model.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/how-to-explain-to-clients-your-transition-to-the-ria-model/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
What is the payout in the RIA model?
Simple question, not so simple answer.
To perform an accurate comparison, you must:
- Properly calculate your current payout.
- Understand how payouts are expressed in the RIA model (spoiler: there is far less uniformity in the RIA space.)
- Consider what value is provided to you for the payout, and what you’re responsible for sourcing yourself.
- Consider how the resulting payout figures compare across channels and offerings.
In this episode of the Transition To RIA question and answer series, I expand on each of these variables.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/how-does-an-ria-payout-compare-to-a-broker-dealer-payout/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
Transitioning your practice to the RIA model involves a lot of work, and at times, a fair amount of stress.
But ask anyone that has made the transition, and they’ll tell you the destination is worth the journey.
You should prepare yourself, though, for what the journey will entail.
In this episode of the Transition To RIA question & answer series I explain what the most stressful parts of a transition are, and how to prepare for them.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/what-are-the-most-stressful-parts-of-starting-an-ria/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
If you start your own RIA, will you be able to participate in your custodian’s client referral program?
First starters, do you know what these programs are?
Or which custodians have them?
Or who is eligible, and likely to be able to participate in them?
In this episode of the Transition To RIA question & answer series I address these questions, and more!
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/can-i-join-a-custodians-client-referral-program/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
Whether in our personal or professional lives, most everything in life revolves around motivations.
- What motivates you to run your advisory practice as you do?
- What motivates you to pursue certain hobbies and passions?
- What motivates your kids to make the decisions they do?
When financial advisors and teams reach out to me to explore the RIA model, I typically start by asking what has motivated them to do so.
Having asked hundreds of advisors this question, the answers typically revolve around a desire for more flexibility with their practice, and/or better economics.
In this episode of the Transition To RIA question and answer series I provide examples of what the specific motivations often are.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/what-motivates-advisors-to-transition-to-the-ria-model/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
How long does a transition to the RIA model take?
The time needed is impacted by variables such as the circumstances of the advisor/team, which pathway into the model is chosen, etc.
It is complicated further due to certain steps in the process being out of the control of the advisor/team as to how fast they can be completed.
In this episode of the Transition To RIA question & answer series I address which steps in the process are the most time consuming.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/what-is-the-most-time-consuming-part-of-transitioning-to-the-ria-model/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
There are several reasons advisors choose to join an existing RIA versus starting their own.
But that’s not the only decision to be made.
There are a wide variety of “flavors” of RIAs to then choose from.
Differing economics, flexibility, approach to branding, taxation, succession solutions, are just some of the many variables that can differentiate them.
But of all the options, which is the most popular?
In this episode of the Transition To RIA question & answer series I explain how these solutions are often differentiated…..and which is the most popular.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/what-is-the-most-popular-type-of-ria-to-join/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
When a new client comes to you for help managing their financial life, there are many steps involved. Some are more exciting for the client than others.
- Opening accounts.
- Pulling old statements.
- Filling out financial profiles.
Those are some of the important, though less glamorous steps.
- Talking through life goals.
- Travel plans in retirement.
- Ways to help family and important causes.
Those are the exciting steps!
But the latter can’t be achieved, without the former.
It is the same when transitioning your practice to the RIA model. There are necessary, those less glamorous steps involved.
However, there are exiting parts as well.
In this episode of the Transition To RIA question & answer series I explain what the exciting parts of a transition are.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/what-is-the-most-exciting-part-about-starting-an-ria/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
"Fee-based" revenue is often "reoccurring" revenue.....
.....but "reoccurring" revenue is not necessarily "fee-based" revenue.
Confused yet?
Often incorrectly used interchangeably, these two phrases can mean entirely different things.
Depending on the profile of your practice, it's a difference that could determine whether your practice is a fit for the RIA model….or not!
In this episode of the Transition To RIA question & answer series I explain how these two variables differ, and what it could mean for your practice.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/what-is-the-difference-between-reoccurring-revenue-fee-based-revenue/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
You’ve likely heard it before, the economics are better in the RIA model.
But why is that?
To name a few:
- Higher top line revenue
- Ability to control expenses
- Operating leverage
- Tax advantages
- Flexibility to grow your practice faster
- Higher enterprise value
It’s important to understand how these variables compare to your current affiliation model.
In this episode of the Transition To RIA question & answer series I explain why the economics of your practice would be better in the RIA model.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/are-the-economics-better-in-the-ria-model/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
Do you own or rent your home?
What advice do you give your clients about owning vs renting?
While there are exceptions, owning typically has far better long-term advantages over renting.
Yet, many advisors don’t practice what they preach when it comes to the real estate they use for an office.
An advisor that spends their entire career in a W2 model (ex: wirehouse), experiences the same real estate disadvantages that a life-long home renter does.
In this episode of the Transition To RIA question & answer series I explain what the real estate advantages of the RIA model are.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/what-is-the-real-estate-advantage-of-the-ria-model/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
Will the marketplace assign a higher valuation to your practice in the RIA model?
While there are multiple variables that go into a valuation calculation, there are some basic economic truths involved.
Consider an analogy.
You own a house and desire to sell it. Naturally, you’d like the highest price you can get for it.
Imagine if you lived in an HOA community and the HOA got to dictate how your sale process will occur, under what terms you can sell the house, who the potential buyers can be, etc.
Will that result in the highest valuation?
Or perhaps your community doesn’t have an HOA, but hypothetically the only eligible buyers of your house must come from within your neighborhood itself.
Will that result in the highest valuation?
You might find both scenarios preposterous. But that is the equivalent reality many advisors face, due to the affiliation model they’re in, when trying to derive value from their practice at the end of their careers.
In this episode of the Transition To RIA question & answer series I address some of the variables of why a practice valuation is higher in the RIA model.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/will-my-practice-have-a-higher-valuation-in-the-ria-model/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
You want to transition your practice to the RIA model.
You are currently affiliated with a multi-channel firm. One of those options is their “RIA channel.”
Should you make the “internal” transition of your practice to it?
This question is more complicated than it seems:
- Are you sure you know what your firm is referring to when they say “RIA channel?” Firms use the same vernacular to refer to different models.
- Is an internal move to the channel even an option? (Spoiler: In some instances, it’s not!)
- Are you aware of how the internal option compares to external options available to you as well?
These are just some of the variables that should be part of your due diligence.
In this episode of the Transition To RIA question & answer series I clarify if and when it makes since to consider an internal option.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/should-i-transition-to-the-ria-channel-at-my-multi-channel-firm/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
“I don’t want to join a firm that’s owned by private-equity?”
Why is that?
“They just want to build it and sell.”
But isn’t your current firm (whatever that may be) for sale and susceptible to change?
“No, not with the kind of firm I’m at.”
Are you sure about that???
Advisors often overweight the risks involved with joining a firm that has private-equity backing, while underweighting in comparison the risks with other firm structures.
On this episode of the Transition To RIA question & answer series, I explain how advisors are better off focusing on how to protect themselves from possible ownership changes, versus worrying as much about who the owners are.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/should-i-avoid-joining-a-private-equity-backed-ria/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
Super-OSJ or RIA?
Let’s start with what is an OSJ?
Let alone, what makes an OSJ “Super?”
And then how does it compare to an RIA?
If you are considering joining either, it is important to understand the distinct regulatory and competitive differences between them.
In this episode of the Transition To RIA question & answer series I explain how these two models differ, and why you might choose one over the other for your practice.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/what-is-the-difference-between-a-super-osj-and-an-ria/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
“Hybrid”
“Hybrid RIA”
“Hybrid Broker-Dealer”
Are they the same, or are they different?
Depends on who you ask!
Solution providers will often tout having a “hybrid” solution. Their version of hybrid though might be very different than what you are assuming they are referring to.
In this episode of the Transition To RIA question & answer series I explain how these different “hybrid” solutions vary.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/what-is-the-difference-between-a-hybrid-ria-and-a-hybrid-broker-dealer/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
To celebrate the 100th episode of the Transition To RIA question & answer series, I was joined by special guest, Michael Kitces.
He graciously accepted my request to come on the show where I would attempt to challenge him with seven questions about the RIA model he has never been asked before:
- Will we ever see the equivalent of a Chick-Fil-A in the RIA industry (a systematized business with both hugely passionate clients and operators?)
- If you had to choose to run a $50M, $500M, or $5B RIA, which would you choose and why?
- If you were king for a day 20 years ago, and could change one thing about our industry, with no ramifications, what would it have been?
- What do you think the RIA model will look like 30 years from now?
- If you were a mutual fund wholesaler today, how would you try to work with RIAs?
- If you were asked to help invest $100M into the industry, how would you deploy the capital?
- If you had more capacity, is there a business in our industry you would try starting, and perhaps others should be trying themselves?
Spoiler: Out of the seven, six he had never been asked before. Can you guess which one I missed the mark on?
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/seven-questions-about-the-ria-model-michael-kitces-has-never-been-asked/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
Thinking about starting an RIA?
Beware of industry voices bent on scaring you out of it.
Whether due to naivety or because they’re agenda driven to keep you from making a change, there is no shortage of people expressing falsehoods about the RIA model.
The resulting misconceptions often relate to managing compliance as your own RIA.
In this episode of the Transition To RIA question & answer series, I debunk several such misconceptions.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/what-do-advisors-fear-about-compliance-with-the-ria-model/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
I’m an advocate of the RIA model.
Better economics and increased flexibility are why it continues to be the fastest growing channel in the industry.
But it’s not for all advisors.
Whether because of the profile of your practice, your desires as a financial advisor, or external variables somewhat out of your control, the model may not be a good fit for you.
In this episode of the Transition To RIA question & answer series I explain when the RIA model is not a fit.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/is-the-ria-model-right-for-your-practice/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
There are a lot of things in life in which getting to a “no” is easier than getting to a “yes.”
Deciding which RIA to join is one of them.
With several strong value propositions in the marketplace to choose from, determining which one to say yes to takes time.
The easiest way to begin the process is to narrow the field by knowing which solutions you should quickly say “no” to.
In this episode of the Transition To RIA question & answer series I explain which type of RIAs you should exclude from your consideration.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/what-type-of-rias-should-you-not-join/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
Ideally you will never be in a situation where you must ask what is the quickest you could transition your practice to the RIA model.
A transition typically involves a methodical, well thought out process.
But there are some circumstances where an expedited transition might be necessary.
In this episode I explain when those circumstances might occur, and how quickly you can make a change if needed.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/what-is-the-quickest-you-could-transition-to-the-ria-model/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
You don’t choose which car to buy based on which dealership brand happens to be closest to where you live.
You don’t choose which house to buy based on which listing you happen to see first on Zillow.
The tail should never wag the dog.
Important decisions should be made based on the underlying variables, not based on which decision is logistically easier to make.
The same thing applies when picking what type of firm to transition your practice to.
In this episode, I explain why choosing a broker-dealer is always easier than choosing an RIA, but if you let the tail wag the dog, you get what you pay for.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/why-is-it-harder-to-pick-an-ria-to-join-than-a-broker-dealer-to-join/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
There are many participants in our industry who run around gleefully messaging the big upfront bonus checks wirehouses are known to write.
Have you ever considered why that is their opening line?
As they say in Texas, are they “big hat, no cattle?”
Before considering taking a big upfront check for joining a firm, it is important to understand the trade-offs you’re forced to take in return.
In this episode of the Transition To RIA question & answer series I explain what those trade-offs are, and how it compares to pursuing an RIA path instead.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/why-go-ria-when-wirehouses-offer-huge-upfront-checks/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
There are no specific regulatory or legal definitions of "Corporate RIA" or "Independent RIA."
Instead, we must rely on how the terms are commonly used in the marketplace.
Corporate RIA verbiage is most often used in reference to the RIA component of large broker/dealers, particularly independent broker/dealers.
Independent RIA verbiage is typically used in reference to owning your own RIA.
On this episode, I discuss not only these two definitions, but additional ways in which the verbiage is used, often in ways you should be cautious about.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/what-is-the-difference-between-a-corporate-ria-and-an-independent-ria/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
You've done your due diligence on the RIA model.
You've determined which path into the model to use.
You've mapped out the transition steps.
But how much is it going to cost to make the transition?
There are hard costs, as well as your own peace of mind, that must be considered.
In this episode I explain what those costs are and how to plan for them.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/how-much-cash-should-i-have-saved-before-transitioning-my-practice-to-the-ria-model/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
Transitioning your practice to an existing RIA platform is a path chosen by many advisors.
An important part of your due diligence of a firm is their payout.
In this episode I explain how payouts in the RIA model are generally structured, as well as the payout levels you can expect depending on the type of solution you choose to partner with.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/what-is-the-payout-if-i-join-an-ria/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
Transitioning your practice to the RIA model gives you the luxury of creating your own brand.
Having a website to showcase your brand, and provide a way for clients and prospective clients to find you, is an important part of it.
On this episode I cover the logistical and creative considerations involved with acquiring a domain name (i.e. the ".com" part) for your new website.
Seven tips covered in the episode:
- Use a “.com” domain.
- Chose a domain that is either your brand name, or descriptive of your client offering.
- The shorter the domain, the better.
- Trademark concerns aren’t as much of a worry.
- Buy a domain immediately if you think you might want to use it.
- Make sure ownership details of your domain are kept private.
- You can buy a domain before hiring a marketing/website company.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/what-website-domain-should-i-use-with-my-new-ria/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
Many advisors seek to transition their practice to the RIA model by joining an existing RIA offering.
With different platform types, value propositions, and economic considerations, how do you choose the one that is the best fit for your practice?
On this episode of the Transition To RIA question and answer series, I am joined by Penny Phillips, cofounder of Journey Strategic Wealth, to discuss how to evaluate an RIA to join.
We cover not only the variables you’ll want to understand and consider, but also how you can expect the due diligence process to play out.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/how-do-i-evaluate-a-potential-ria-to-join/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
Determining whether to transition your practice to the RIA model does not have to be intimidating.
The entire process can be simplified down to three key decisions, sequentially addressed in order:
- Is the RIA model a fit for my practice?
- What are the available pathways into the model?
- Who are the solution providers that support my chosen pathway?
In this episode of the Transition To RIA question & answer series I explain how these three decisions guide you through the process.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/what-are-the-three-key-decisions-involved-with-considering-the-ria-model/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
If you transition your practice to the RIA model there are a LOT of variables to consider, and decisions to be made.
What technology to use is one of the most important of them.
Within the technology "stack," your Customer Relationship Management ("CRM") tool is arguably the most important component.
In this episode of the Transition To RIA question & answer series I explain why the CRM is so important, and how you should consider implementing it with your practice.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/what-is-the-most-important-software-for-a-new-ria/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
There are multiple tasks involved with running an RIA practice.
Advisors tend to be passionate about the client facing tasks, and less so the behind-the-scenes administrative and operational parts.
What if you designed an RIA where you outsourced most (all?) of the non-client facing tasks?
What if you could spend nearly all your time on just the parts of the business you really enjoy?
In this episode I explore how far you can potentially take outsourcing within an RIA.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/how-to-run-a-large-ria-with-only-one-person/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
You've done your homework to learn how the RIA model works.
You've considered the different pathways into the model.
You've performed due diligence on the needed solution providers.
It all makes sense. It's a fit for your practice. You're ready to get started!
But, is there anything that could prevent you from doing so?
Yes, there are hurdles that, depending on your circumstances, could be insurmountable. In this episode of the Transition To RIA question & answer series I explain what those hurdles are and when they could impact you.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/what-could-prevent-an-advisor-from-starting-an-ria/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
How much does it cost to start a Registered Investment Advisor ("RIA") practice?
As often occurs with the advice that financial advisors give their own clients, the answer is "it depends."
For new advisors first entering the industry who plan to run a virtual practice, the cost might be as little as a few thousand dollars. For a large team catering to HNW clients, who plan to transition their practice from an existing broker/dealer firm, the cost could potentially be $100,000+.
There are several variables that go into the total cost equation. Some of the variables have static prices, while others provide a wide range of options for advisors to choose from.
In this episode I explain what the main cost variables are and how you can start to pencil your own start-up estimate.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/how-much-does-it-cost-to-start-an-ria/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
Obtaining Errors & Omissions ("E&O") insurance for your Registered Investment Advisor ("RIA") is not only a best practice, it is usually now a requirement for most RIAs.
E&O is professional liability insurance that protects your RIA from risks ranging from the proverbial "fat-fingered" trade entry error, to defending yourself against meritless lawsuits.
Most custodians now require RIAs using their clearing services to maintain a minimum level of E&O coverage.
In this episode I explain what those coverage levels typically are and the nuances between coverage types to be aware of.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/how-much-errors-and-omissions-coverage-does-my-ria-need/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
A common frustration by financial advisors in the broker/dealer model is a burdensome compliance department.
This is often the result of the firm managing compliance to the lowest common denominator amongst thousands of advisors at the firm.
An inaccurate assumption about the RIA model is that joining an RIA with similar growth aspirations will lead to a compliance burden no better than what the advisor is trying to get away from at their broker/dealer.
In this episode, I explain why this is a faulty comparison and how the RIA model is different.
Come take a listen!
P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.
Show notes: https://TransitionToRIA.com/wont-large-rias-have-the-same-challenging-compliance-departments-as-broker-dealers/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
A tale often told by broker/dealer management is that B/D technology is superior to the technology available in the Registered Investment Advisor ("RIA") model.
A few decades ago, they were right!
There was a time that broker/dealers had better economies of scale with technology investments as they had more advisors (users) to spread the investment cost across, versus what any one tech provider in the then RIA space could achieve.
That investment advantage, led to better technology.
That paradigm is now exactly opposite.
With the growth of the RIA model over the past few decades, large RIA tech providers now have more users than any one broker/dealer has, thus reversing the economies of scale advantage.
This is only one of the ways that RIA model technology has become superior to broker/dealer technology. In this episode I give a breakdown of what those advantages are.
Come take a listen!
Show notes: https://TransitionToRIA.com/is-broker-dealer-technology-better-than-ria-technology/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
It is common for advisors transitioning their practice to the RIA model to want to bring their existing support team members with them.
Those team members are often not only critical to the advisor's practice in general, but will likely play a key role in the transition process itself.
In this episode of the Transition To RIA question & answer series, I am joined by attorney Rich Chen to discuss what options you have for bringing team members with you, and how to navigate the process safely.
Come take a listen!
Show notes: https://TransitionToRIA.com/can-i-take-my-employees-with-me-if-i-transition-to-the-ria-model/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
There are many advantages for why financial advisors transition their practices to the Registered Investment Advisor ("RIA") model. Equally compelling are the advantages for their clients.
It is important to be able to articulate to your clients what the RIA model is, why you are transitioning your practice to it, and how it benefits them.
I frequently ask advisors that have already made the transition, how they explained it.
In this episode I provide several talking points to consider, and I share my all-time favorite answer from an advisor on how they explained it to their clients.
Come take a listen!
Show notes: https://TransitionToRIA.com/how-do-i-explain-the-ria-model-to-clients/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
"Can I manage client assets myself as an RIA?"
This is a simple question, with a simple answer. “Yes”
More telling is why advisors are asking it in the first place.
It is often due to concern that their ability to manage assets under their current affiliation model could become constrained, or even taken away from them at some point in the future. (Of no fault of their own, but due to firm wide policy changes.)
Thus, they're wanting to confirm this possibility would be eliminated if they transitioned their practice to the RIA model.
Could your ability to manage client assets be taken away? In this episode of the Transition To RIA question and answer series, I explain how it works in the RIA model, and why you might one day be yearning for it.
Come take a listen!
Show notes: https://TransitionToRIA.com/can-i-manage-client-assets-myself-as-an-ria
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
Episode notes:
The Registered Investment Advisor ("RIA") model remains the fastest growing channel in the industry, with no indication the trend will slow anytime soon.
Year after year, financial advisors seek out the better economics, flexibility, and higher enterprise valuations afforded by the model.
With such advantages, why don’t even more advisors (than already are) make the transition with their practices?
In this episode of the Transition To RIA question & answer series, I address the main variables holding advisors back. Have you fallen trap to them?
Come take a listen!
Show notes: https://TransitionToRIA.com/why-dont-more-financial-advisors-transition-to-the-ria-model
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
There are many misconceptions about the RIA model.
- You can’t take your legacy commission business with you…..false.
- You’ll spend all your time on compliance…..false.
- You can’t use alternative investments…..false.
- The technology is inferior…..false.
I could go on and on.
In this episode of the Transition To RIA question & answer series, I address another falsehood: You can’t accommodate clients who have concentrated stock positions.
You can indeed.
Come take a listen!
Show notes: https://TransitionToRIA.com/can-i-accommodate-concentrated-stock-positions-as-an-ria
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website (TransitionToRIA.com) he has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
Imagine I challenged you to a one-on-one game of basketball.
We each use the same equipment. The rules of basketball apply to both of us.
One caveat: You must play with one arm tied behind your back.
Sound fair? Or an unfair advantage?
If such a scenario seems preposterous, consider if you’re currently a one-armed player as an advisor.
The Registered Investment Advisor ("RIA") model provides financial advisors an advantage over advisors not in the model.
In this episode I explain 13 of those advantages.
Come take a listen!
Show notes: https://TransitionToRIA.com/what-are-13-ways-that-registered-investment-advisors-have-an-unfair-advantage
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website (TransitionToRIA.com) he has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
Want to know the dirty little secret of real estate expense for advisory practices?
You need to pay for the expense of your office as a fixed cost, not a variable cost via your payout.
The difference in approaches, particularly if you own your office building, could potentially result in millions of additional dollars to your net worth by the time you retire.
In this episode I discuss why and how to pay for office expense as a fixed cost, as well as additional ways you can decrease the expense even further.
Come take a listen!
Show notes: https://TransitionToRIA.com/how-can-i-reduce-or-eliminate-my-real-estate-office-expense-as-an-ria/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
What is a corporate RIA?
You're possibly already affiliated with one and don't realize it.
Worse, you could be affiliated, and don't realize if it's even competitive or not.
As the trend to fee-based advisory relationships continues, the concept of a "corporate RIA" will become increasingly prevalent.
In this episode of the Transition To RIA question and answer series, I explain how corporate RIAs came to be, what sort of offerings currently exist, and what they'll need to do to be competitive going forward.
Come take a listen!
Show notes: https://TransitionToRIA.com/what-is-a-corporate-ria/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.
I am frequently asked how the economics of the Registered Investment Advisor ("RIA") model compare to the broker/dealer model.
The first step in a comparison is to calculate your existing broker/dealer payout.
However, you can't simply refer to a payout grid table, and conclude that is your payout. There is a reason advisor compensation plans generally run 20+ pages!
What eventually flows to your pocket, is often far different from what the grid table would indicate.
In this episode of the Transition To RIA question and answer series, I explain how to calculate your true net payout.
Come take a listen!
Show notes: https://TransitionToRIA.com/how-to-calculate-your-true-net-broker-dealer-payout/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Ever been told you shouldn't go the RIA route because you won't get any support? You'll be on your own? You'll be so busy doing administrative tasks you won't have time to be an advisor?
Often, the people making such declarations have ulterior motives. Perhaps it's a branch manager, or home office executive that doesn't want to lose you from their firm.
There is an entire ecosystem supporting the RIA model that makes such statements irrelevant. There are now even fully "SUPPORTED INDEPENDENCE" approaches that make it possible to replicate and improve upon what you have now, while gaining all that the independent model provides.
In this episode of the Transition To RIA question and answer series, I explain what these offerings are and when they might be a fit for your practice
Come take a listen!
Show notes: https://TransitionToRIA.com/what-is-a-supported-independence-ria-model/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
It doesn’t happen often, but I do get asked……can I have foreign clients as an RIA?
This is relevant if you have such clients in your current affiliation model, or you aspire to add them to your clientele upon transitioning to the RIA model.
Similar to if you’re at a broker/dealer now, the answer is generally….it depends.
In this episode of the Transition To RIA question and answer series, I explain when it is possible to do, as well as discuss the solution providers you’ll need to lean on to be able to do so.
Come take a listen!
Show notes: https://TransitionToRIA.com/can-i-have-foreign-clients-as-an-ria/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
There are two ways to improve the profitability of a business.
Increase revenues or decrease expenses.
Preferably, you do both.
The RIA model provides far greater flexibility than any other advisor model with your ability to impact each.
How you manage that flexibility is what determines your bottom line.
In this episode of the Transition To RIA question & answer series I discuss how to maximize the profitability of an RIA.
Come take a listen!
Show notes: https://TransitionToRIA.com/how-to-generate-the-highest-income-with-your-ria
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
There are two ways to grow an RIA.
Organically from expanding existing client relationships and bringing on new clients.
And inorganically, from acquiring practices and/or attracting advisors to join your RIA and bringing their clients with them.
When doing the latter, it is important to understand the competitive landscape and what is expected of joining advisors.
In the latest episode of my RIA question and answer series, I discuss 7 mistakes to avoid if trying to attract advisors to join your RIA:
- You do not have a defined offering.
- You have a weak value proposition.
- You price your offering as a payout.
- You don’t have an organized process for attracting and onboarding advisors.
- You don't explicitly state that joining advisors will have ownership of their client relationships.
- You try to punch above your weight.
- You don't know your competition.
Come take a listen!
Show notes: https://TransitionToRIA.com/what-are-mistakes-to-avoid-when-trying-to-recruit-advisors-to-join-your-ria
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
I admit it, I critique the wirehouse brokerage model a LOT.
Considering how much it contrasts with the RIA model, there’s lots to be critiquing!
What if the wirehouse model could be improved though?
In the latest episode of my RIA question and answer series, I discuss 8 ways the wirehouse model could become more competitive with the RIA model:
- Think of your advisors as your clients.
- Tell your advisor “clients” they are all free agents.
- No gimmicks with the payout.
- Better yet, invert your payout.
- Eliminate deferred compensation.
- No forced cross-selling.
- Tier your approach to compliance.
- Acknowledge the advisor owns the client relationship.
Come take a listen!
Show notes: https://TransitionToRIA.com/how-would-i-improve-the-wirehouse-brokerage-model
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Walk into a hair salon and ask the stylist if you need a haircut. Any guesses what their answer will be?!
The same can be said depending on who you ask about the timing of transitioning your practice to a new firm or affiliation model.
In this episode of the Transition To RIA question & answer series I help you block out the noise, and focus on the variables that matter.
- Who you should listen to, and who you shouldn’t.
- Timing considerations worth recognizing.
- How I answer this question myself.
Come take a listen!
Show notes: https://TransitionToRIA.com/should-you-change-affiliation-models-during-challenging-market-conditions
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
An important role financial advisors perform for their clients is to help them avoid mistakes with their financial well-being.
Likewise, when advisors transition their practice to the RIA model, there are mistakes that should be avoided as well.
In the latest episode of my RIA question and answer series, I discuss five common mistakes to be aware of and to avoid:
Mistake #1 - You don’t obtain legal advice when breaking away.
Mistake #2 - You only consider one firm/model.
Mistake #3 - You don’t learn about the responsibilities of the RIA model.
Mistake #4 - You let the transition process take longer than necessary.
Mistake #5 - You don’t get independent advice.
Come take a listen!
Show notes: https://TransitionToRIA.com/mistakes-financial-advisors-make-when-transitioning-to-the-ria-model
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Several independent broker-dealers have introduced “IAR-only” affiliation options. Is this something you should consider for your own practice?
In this episode, I address 5 topics related to these new channel offerings:
- What is an IAR-only affiliation option?
- Why are broker-dealers creating them?
- How do these IAR-only channels compare to alternatives in the marketplace?
- Who will these IAR-only channels mostly appeal to?
- What broker-dealers can do to improve their IAR-only offerings.
Come take a listen!
Show notes: https://TransitionToRIA.com/what-do-i-think-of-iar-only-channels-at-broker-dealers
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Don't confuse the expenses of running an RIA as being "new" expenses compared to what you have now.
Depending on your current affiliation model, you are likely already paying these expenses, they are just embedded in the payout you receive.
In the RIA model, you have much more control over how to manage these expenses.....TO YOUR BENEFIT!
In the latest episode of my RIA explanatory series, I discuss five of the largest expense items of a modern day advisory firm, and how to best manage them:
- Office space
- Team members
- Technology
- TAMP
- Compliance
Come take a listen!
Show notes: https://TransitionToRIA.com/what-are-the-largest-expenses-of-running-an-ria
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
I have a lot of conversations with advisors that are in the wirehouse W2 type model, who want to move into a more independent model.
Sometimes the default reaction they have is, "Maybe I should go into the independent broker-dealer model first and then move into the RIA model later." The phrase I sometimes hear is, "Maybe it's a step too far to go from this employee model I’m in now, all the way to the RIA model."
I challenge that by asking, "Why is that? Why do you feel you need a stepping stone to get to where you eventually want to get to?"
On this episode I go into some of the reasons that I am given as to why some advisors feel they think they should go to an independent broker-dealer model first before they get to the RIA model. And why that way of thinking is usually based on misconceptions.
Come take a listen!
Show notes: https://TransitionToRIA.com/should-i-join-an-independent-broker-dealer-first-or-should-i-go-straight-to-the-ria-model
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
A common misconception about the Registered Investment Advisor ("RIA") model is that you must be 100% fee-only to transition your practice to it.
Most advisors, at the time of transitioning, are in fact not 100% fee-only. Many never plan to be going forward either.
While the assets under the RIA itself are fee based accounts, there are several solutions to accommodate the existing commission part of your practice.
In this episode of my RIA explanatory series, I address five different approaches for your commission assets:
- Walk away
- Convert
- Sell
- Use an RIA-friendly broker/dealer
- Park and advise
Come take a listen!
Show notes: https://TransitionToRIA.com/what-should-i-do-with-my-legacy-commission-business/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Are you a financial advisor at a wirehouse (or W2 firm) currently?
Are you considering moving your practice to one?
There are fundamental differences in the business model of a wirehouse firm, and the RIA model.
In the latest episode of my RIA explanatory series I explain these differences and how they impact you, and your clients.
Topics include the differences in:
- Compensation
- Technology
- Compliance
- Real Estate
- TAMPs
Come take a listen!
Show notes: https://TransitionToRIA.com/how-does-a-wirehouse-compare-to-an-ria
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
At it's core, transitioning to the RIA model is simply an exercise in identifying what your current firm provides for you, and determining how to replicate those resources on your own.
Technology is a key part of that.
In the RIA model, the various technology solutions needed to run a modern day advisory practice, are brought together into a "tech stack".
In the latest episode of my RIA explanatory series I explain, among other things:
- What a tech stack is.
- The types of solutions that make up a tech stack.
- Important considerations to be aware of when designing a tech stack.
- Why technology is so important for your practice.
Come take a listen!
Show notes: https://TransitionToRIA.com/what-is-an-ria-technology-stack
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Every Registered Investment Advisor is required to have a named Chief Compliance Officer (CCO).
Whether you are thinking of starting your own RIA, or already have one and would prefer to outsource more of the compliance responsibilities, an outsourced CCO solution is worth considering.
In the latest episode of my RIA Question & Answer series I am joined by Jeff Chapman of Dinsmore Compliance Services where we discuss, among other things:
- What compliance responsibilities do RIAs have in general?
- How do most RIAs fulfill those responsibilities?
- What is an outsourced CCO solution?
- What size RIA does an outsourced solution make sense for, and what does it cost?
Come take a listen!
Show notes: https://transitiontoria.com/what-is-an-outsourced-chief-compliance-officer
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
You’ve likely heard of a TAMP before, but what exactly is it?
The definition of a Turnkey Asset Management Program has expanded to the point where one “TAMP” solution can vary significantly from another “TAMP” solution. So much so that some TAMPs arguably should no longer even call themselves a TAMP at all!
Is a TAMP something you should consider for your practice?
Are you already using a TAMP and don’t even realize it?
In the latest episode of my RIA Question & Answer series I explain:
- What a TAMP is.
- The different variations of them.
- How you can use them in your practice.
- How they are priced.
Come take a listen!
Show notes: https://transitiontoria.com/what-is-a-tamp
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
If at some point in the trajectory of your advisory practice you envision changing firms or affiliation models, it's important to understand what the Broker Protocol is.
The Protocol For Broker Recruiting, as it is formally known, was started nearly 20 years ago by three firms seeking to reduce the litigation risk and costs of advisors changing firms.
While the core protections remains the same, the number of participants and nuanced carve-outs to it, has significantly increased it's complexity.
In the latest new episode of my RIA question & answer series, I explain what the Broker Protocol is and you how may be able to use it to your advantage.
Come take a listen!
Show notes: https://transitiontoria.com/what-is-the-broker-protocol
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Are you a financial advisor at a broker/dealer?
Are you getting good value in return for the revenue you generate for your firm?
If you don’t fully understand how much revenue advisors generate for broker/dealers in the first place, how would you know?
There is a lot more to it than just payouts alone.
In the first episode of the new year of my RIA question & answer series, I explain how broker/dealers generate their revenues.
Come take a listen!
Show notes: https://transitiontoria.com/how-much-revenue-does-a-broker-dealer-generate-from-their-advisors/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
In a slight pivot to my normal format, in the most recent episode of my RIA Question & Answer series, I sat down with long time industry observer, Bob Veres and challenged him with 10 questions related to the future of the RIA model:
1) If you were standing in the front of a room of wirehouse advisors and one of them stood up and asked you what you thought of the RIA model, what would you say to them?
2) What will be a pretty normal thing in the RIA model 10 years from now that does not either exist, or is not widespread today?
3) If you were starting your own RIA, what would it look like?
4) Do you think the prediction of national or super-regional RIA firms will bear out, and is it a good thing if it does?
5) With these big firms, is there still room for smaller firms?
6) What advice would you give college students who will be graduating soon and looking to enter our industry?
7) Who is the RIA model not a good fit for?
8) Over the coming years which affiliation channel is going to be most challenged by this transition to more independent models?
9) Imagine you are king for the day and you can wave your wand and change one thing about our industry and you don’t have to worry about regulators or lobbyists or politicians or anything like that, there’s one thing you get to change, what is it?
(Note: There are only 9 questions noted above as Bob ended up answering one of the questions during part of a previous answer.)
Come take a listen and learn more!
Show notes: https://transitiontoria.com/ten-questions-on-the-future-of-the-ria-model-with-bob-veres/
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
There are more variables involved in choosing a custodial partner than most people realize.
In the latest episode of my RIA explanatory series, I address 11 different variables you will want to consider before making such a decision.
Some of the variables are table stakes, that you should expect from any potential custodial partner.
Other variables are what differentiate one custodian's value proposition from another.
Ultimately, each advisor situation is unique. What might be a good custodial solution for one advisor, might be opposite for another.
Come take a listen and learn more!
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
I'm Brad Wales with Transition To RIA. This is episode #52 of the Transition To RIA question and answer series where I answer RIA related questions I get from advisors just like you.
There are fun and exciting parts to transitioning your practice to the RIA model. To name a few:
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How will you brand and market your new practice?
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With newfound flexibility, will you add to your service offering?
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Are there additional client profiles you’d like to target?
Also important is how you handle the necessary blocking and tackling of having a new firm.
In this episode, I am joined by industry attorney Richard Chen where we discuss how to structure the ownership of your new firm to address both initial needs, as well as to ensure flexibility going forward.
Among other topics, we discuss:
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What type of ownership structures are used.
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How to accommodate multiple owners, both present and future.
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Why and how you need to be using an Operating Agreement.
Come take a listen!
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Something I do with almost all financial advisors I talk to, is to explain the various PATHWAYS INTO THE RIA MODEL.
For some, that will be starting their own RIA.
For others, it will be joining an existing firm.
Whereas others pursue a middle of the road path that is essentially a mix of the two.
Of these options, WHY JOIN AN EXISTING RIA, WHEN YOU CAN PERHAPS START YOUR OWN?
In my latest episode for my RIA question & answer series, I explain why many advisors are concluding that joining an existing firm is indeed the better path for them to take.
Come take a listen!
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
I'm pleased to report I am now up to episode #50 of my RIA explanatory series!
Ironically, I was once told making such episodes would never work.
Well, after ignoring that advice, turns out people like (and prefer!) genuine educational content. No one wants to be sold to.
Continuing that same theme with episode #50, I was fortunate to be joined by Tim Rembowski of DPL Financial Partners.
Tim and I discuss how one of the common misconceptions about the RIA model is not being able to offer insurance solutions to your clients.
When in fact, there are now purpose-built offerings to support RIA advisors in doing exactly that.
Come take a look!
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
This is episode #49 of the Transition To RIA question and answer series where I answer Registered Investment Advisor (RIA) related questions I get from advisors just like you. On today's episode I answer the question.....How Long Does It Take To Transition To The RIA Model?
Pop quiz: How do you know someone does CrossFit?
Answer: Don’t worry, they will tell you!
I can make this joke as I previously did CrossFit for many years….and yes, I’m sure I talked about it!
One of the lasting lessons I learned from CrossFit though is that your body can do more than you think it can.
When you think you can’t do a single additional pushup, or you can’t finish that last half mile……turns out, you can. It’s your mindset that holds you back.
This relates to advisors transitioning their practices into the RIA model.
If the model is a good fit for you, it takes less time to make the move than you might think.
In this latest episode from my RIA Question & Answer series, I explain how long the process should take…..as long as you have the right mindset.
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
This is episode #48 of the Transition To RIA question and answer series where I answer Registered Investment Advisor (RIA) related questions I get from advisors just like you. On today's episode I answer the question.....Why Should An RIA Use LinkedIn?
“Do you know how hard it is to think someone's a jerk who asks you interesting questions about your background?”
This was from Sara Grillo who joined me on this episode discussing an almost fool-proof strategy for how to connect with potential clients on LinkedIn.
Transitioning your practice to the RIA model generally results in significant more flexibility in how you can position your firm in the marketplace, and communicate your brand.
LinkedIn is arguably now the top social media platform to use for such business development purposes.
But, WHAT IS THE BEST WAY TO USE IT WITH YOUR PRACTICE?
Come take a listen as when Sara Grillo steps to the mic, class is in session and you know there’s a lot you’ll learn!
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
This is episode #47 of the Transition To RIA question and answer series where I answer Registered Investment Advisor (RIA) related questions I get from advisors just like you. On today's episode I answer the question.....10 Reasons To NOT Start An RIA?
There are pros AND cons to starting your own RIA.
There is no golden goose. No firm or affiliation model is perfect in every way.
What I frequently run into though are advisors who have heard of various reasons as to why they should NOT start their own RIA.
Some of those reasons are valid, some not so valid.
In my latest episode, I go over 10 common reasons you'll hear as to why you should NOT start your own RIA.
1 - "YOU'RE NOT 100% FEE-BASED."
2 - “YOU WON'T HAVE THE RESOURCES THAT YOUR CLIENTS DEMAND.”
3 - “THE TECHNOLOGY IS NOT AS GOOD.”
4 - “YOU'LL HAVE TO DO YOUR OWN COMPLIANCE.”
5 - “YOU WILL GET AUDITED.”
6 - “IF THE MARKET DECLINES, YOU'LL BE STUCK WITH THE FIXED COSTS OF RUNNING A FIRM.”
7 - “YOUR CLIENTS WON'T FOLLOW YOU.”
8 - “DO YOU WANT TO BE RESPONSIBLE FOR WHEN THE COPY MACHINE BREAKS?”
9 - “ADVISORS THAT GO TO INDEPENDENT MODELS ARE NOT GOOD ENOUGH TO BE AT THE TRADITIONAL FIRMS.”
10 - “YOUR CLIENTS WANT A BIG FIRM TO BE ABLE TO SUE IF SOMETHING GOES BAD OR YOU DO SOMETHING WRONG.”
Valid reasons? Come take a listen and decide for yourself.
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
This is episode #46 of the Transition To RIA question and answer series where I answer Registered Investment Advisor (RIA) related questions I get from advisors just like you. On today's episode I answer the question.....how do I obtain Errors & Omissions insurance ("E&O") as my own RIA?
Transitioning to the RIA model 30 years ago was hard. Transitioning to it today, not so hard.
However, the latter assumes you are familiar with the steps involved in how to do so.
As I frequently explain to advisors, there is a defined process for how to work through each of the steps involved.
In this episode, I am joined by expert Scott Shannon as we discuss how to obtain E&O insurance as your own RIA.
As with all of the processes involved in starting an RIA, obtaining E&O insurance does not have to be difficult. You simply need to understand how it works, and who the experts are that can assist you with it.
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
This is episode #45 of the Transition To RIA question and answer series where I answer Registered Investment Advisor (RIA) related questions I get from advisors just like you. On today's episode I answer the question.....how to charge for financial planning?
Ever have a prospective client where an AUM fee model is not feasible, and/or desired?
The common example is a doctor shortly out of residency.
These so-called HENRY’s (High Earning, Not Rich Yet) want the advice you provide, but don’t yet have the investable assets to support an AUM-fee model approach.
What they do have though is income to be able to pay you via what is often referred to as “fee-for-service”.
Such approaches include charging monthly subscription fees, retainers, hourly, flat-fee arrangements, etc.
Some RIA firms are built from scratch to be solely fee-for-service. Others are primarily an AUM fee model, who desire to expand their service offering and work with potentially fantastic long-term clients they might not otherwise be able to feasibly service in the short term (ex: HENRY’s).
On this episode, I am joined by Lucy Robeson and Isabelle McGrail of AdvicePay where we cover how to logistically (and compliantly!) incorporate fee-for-service into your advisory practice.
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
This is episode #44 of the Transition To RIA question and answer series where I answer Registered Investment Advisor (RIA) related questions I get from advisors just like you. On today's episode I answer the question.....what is the minimum amount of assets under management (AUM) you need to be able to start your own RIA?
In theory, this should be a relatively simple question to answer. In practice though, and considering all of the variables involved, it is much more nuanced. There are a few different pathways to consider if you want to transition into the RIA model. One of those pathways involves starting your own RIA. Another involves joining an existing RIA firm. The challenge is, depending on who you ask as to whether you are large enough to start your own RIA (vs joining an existing RIA), will often dictate what their answer will be. When in fact, the answer should be based solely on the needs and specific circumstances of each individual advisor or team. Not based on who is answering the question.
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
This is episode #43 of the Transition To RIA question and answer series where I answer Registered Investment Advisor (RIA) related questions I get from advisors just like you. On today's episode I answer the question.....how do I run the business side of my own RIA?
Having your own RIA involves identifying and utilizing various solution providers to assist you in successfully running your practice. These solution providers often include compliance consultants, technology vendors, marketing experts, TAMP solutions, etc. In each such instance, these providers help by guiding you along a proven process for how to achieve the desired objectives they each individually help you solve for. Often overlooked is the important process of running the actual small business side of your own firm. Hiring/mentoring employees, establishing policies and procedures, creating efficient workflows, etc are all key to running a successful RIA firm. In today's episode we are joined by guest, Andrea Schlapia of Ironstone who is the expert on guiding RIAs on how to successfully navigate the business side of running their own firm.
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
This is episode #42 of the Transition To RIA question and answer series where I answer Registered Investment Advisor (RIA) related questions I get from advisors just like you. On today's episode I answer the capstone question of.....how do I start my own RIA? I address, among other things:
✔️ Why transitioning your practice to the RIA model doesn't have to be complicated.
✔️ The three distinct approaches to the model.
✔️ Why you might choose one of the approaches over another.
✔️ How this makes everything else about transitioning to the RIA model much easier.
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #41: This is episode #41 of the Transition To RIA question and answer series where I answer Registered Investment Advisor (RIA) related questions I get from advisors just like you. On today's episode I am joined by special guest Sharron Ash, where together we address:
✔️ The profile of advisor that needs to be familiar with these legal considerations.
✔️ The "broker protocol" and when/how a transitioning advisor might utilize it.
✔️ Considerations to be aware of beyond just general solicitation topics.
✔️ How to develop a strategy to navigate a transition.
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #40: This episode is from video #40 of the Transition To RIA video series where I answer Registered Investment Advisor (RIA) related questions I get from advisors just like you. In this episode, I address:
✔️ You're probably receiving less in payout than you realize✔️ The importance of an itemized bill vs bundled bill✔️ Some painful math regarding your payout✔️ How this all compares to the RIA model
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #39: This episode is from video #39 of the Transition To RIA video series where I answer Registered Investment Advisor (RIA) related questions I get from advisors just like you. On today's episode I am joined by podcasting expert, Matt Halloran to explain how as an RIA you can establish your own podcast to better position yourself in the marketplace and attract new clients.
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #38: The Certified Financial Planner (“CFP”) designation is arguably the mostly widely recognized professional designation within the financial services industry. From a purely regulatory perspective, holding a CFP is not required in order to start/maintain your own Registered Investment Advisor (“RIA”). Depending on the state you reside in, the designation can however often be used in lieu of a Series 65 or 66, that would otherwise be required to establish your Investment Advisor Representative (“IAR”) status underneath the RIA. Likewise, while perhaps not regulatorily required, there are growing pressures within the industry that are creating an environment in which holding the CFP is increasingly becoming more of a must have, than simply a nice to have designation.
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #37: One of the most exciting aspects about transitioning to the RIA model is creating your marketing plan for your new firm. This is where you get to bring to life the vision you’ve always had of exactly how you want to position your firm in the marketplace. What name you want to call your firm. The logo you want to use. How your website will appear. The look, feel and message of your brand.
In this episode I am joined by Claire Akin of Indigo Marketing Agency, a specialty marketing firm focused exclusively on independent advisors. Together we discuss everything you need to know about the steps involved with launching a marketing plan for your new advisory firm.
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #36: This episode is from video #36 of the Transition To RIA video series where I answer Registered Investment Advisor (RIA) related questions I get from advisors just like you. On today's episode I explain how an RIA custodian generates revenue for itself.
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #35: This episode is from video #35 of the Transition To RIA video series where I answer Registered Investment Advisor (RIA) related questions I get from advisors just like you. On today's episode I explain what exactly a "hybrid" solution is and how/why it is often interchangeably (and incorrectly) used within the industry.
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #34: This episode is from video #34 of the Transition To RIA video series where I answer Registered Investment Advisor (RIA) related questions I get from advisors just like you. On today's episode I explain the different types of RIA compliance consulting firms you will potentially utilize as your own RIA.
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #33: This episode is from video #33 of the Transition To RIA video series where I answer RIA related questions I get from advisors just like you. On today's episode I explain if, and how, it is possible to charge performance based fees as a Registered Investment Advisor (RIA).
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #31: This episode is from video #31 of the Transition To RIA video series where I answer RIA related questions I get from advisors just like you. On today's episode I explain the current debate regarding when/if you can call yourself "fee-only", or depending on your service offering, should you instead only be using a "fee-based" verbiage.
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #30: This episode is from video #30 of the Transition To RIA video series where I answer RIA related questions I get from advisors just like you. On today's episode I explain the often unknown/misunderstood option of being able to still maintain a commission component to your practice as your own Registered Investment Advisor (RIA).
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #28: This episode is from video #28 of the Transition To RIA video series where I answer RIA related questions I get from advisors just like you. On today's episode I explain what you can generally expect to happen during a regulatory examination of your Registered Investment Advisor (RIA).
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #27: This episode is from video #27 of the Transition To RIA video series where I answer RIA related questions I get from advisors just like you. On today's episode I explain how it is possible (and arguably preferable) to start with one custodian as a new Registered Investment Advisor (RIA), and then, if desired, become multi-custodial at a later date.
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #26: This episode is from video #26 of the Transition To RIA video series where I answer RIA related questions I get from advisors just like you. On today's episode I explain how and when conflicts (and potential conflicts) of interest have to be disclosed in the Registered Investment Advisor (RIA) model.
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #25: This episode is from video #25 of the Transition To RIA video series where I answer RIA related questions I get from advisors just like you. On today's episode I explain how to compare simply buying an existing (already formed/live) RIA vs starting one logistically from scratch.
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #24: This episode is from video #24 of the Transition To RIA video series where I answer Registered Investment Advisor (RIA) related questions I get from advisors just like you. On today's episode I explain what a "No Transaction Fee" program is, and where you would encounter one as an RIA.
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #23: This episode is from video #23 of the Transition To RIA video series where I answer Registered Investment Advisor (RIA) related questions I get from advisors just like you. On today's episode I explain what the difference is between Transaction Based Pricing & Asset Based Pricing, and when they are respectively utilized or not.
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #22: This episode is from video #22 of the Transition To RIA video series where I answer RIA related questions I get from advisors just like you. On today's episode I explain whether or not (and how) a custodian will send account statements directly to your clients.
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #21: This episode is from video #21 of the Transition To RIA video series where I answer RIA related questions I get from advisors just like you. On today's episode I explain options you have of different ways you can charge for your services under the Registered Investment Advisor (RIA) model.
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #20: This episode is from video #20 of the Transition To RIA video series where I answer RIA related questions I get from advisors just like you. On today's episode I explain what sort of account minimum requirements you can expect from the custodians you work with.
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #19: This episode is from video #19 of the Transition To RIA video series where I answer RIA related questions I get from advisors just like you. On today's episode I explain what you can expect for mutual fund availability from your custodian(s) that you'll use as a Registered Investment Advisor (RIA).
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #18: This episode is from video #18 of the Transition To RIA video series where I answer RIA related questions I get from advisors just like you. On today's episode I explain what you can generally expect to achieve for client retention if you transition into the Registered Investment Advisor (RIA) model.
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #17: This episode is from video #17 of the Transition To RIA video series where I answer RIA related questions I get from advisors just like you. On today's episode I explain the optionality you have with working with custodians as your own Registered Investment Advisor (RIA).
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #16: This episode is from video #16 of the Transition To RIA video series where I answer RIA related questions I get from advisors just like you. On today's episode I explain what an "advisory agreement" is, why you need one as a Registered Investment Advisor (RIA), and how you go about creating one.
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #15: This episode is from video #15 of the Transition To RIA video series where I answer RIA related questions I get from advisors just like you. On today's episode I explain who has to pay the trading transaction costs, the investing client or the Registered Investment Advisor (RIA).
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #14: This episode is from video #14 of the Transition To RIA video series where I answer RIA related questions I get from advisors just like you. On today's episode I explain what level of bottom-line take home income you can generally expect to earn as your own Registered Investment Advisor (RIA).
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #13: This episode is from video #13 of the Transition To RIA video series where I answer RIA related questions I get from advisors just like you. On today's episode I explain the steps involved with being able to sell insurance as your own Registered Investment Advisor (RIA).
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #12: This episode is from video #12 of the Transition To RIA video series where I answer RIA related questions I get from advisors just like you. On today's episode I explain what you can generally expect to pay for a compliance consultant to assist you with the startup and ongoing compliance responsibilities of having your own Registered Investment Advisor (RIA).
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #11: This episode is from video #11 of the Transition To RIA video series where I answer RIA related questions I get from advisors just like you. On today's episode I explain how compliance works as your own Registered Investment Advisor (RIA), and why it's actually more advantageous than you most likely realize.
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #10: This episode is from video #10 of the Transition To RIA video series where I answer RIA related questions I get from advisors just like you. On today's episode I explain how "book ownership" works in the Registered Investment Advisor (RIA) model.
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #9: This episode is from video #9 of the Transition To RIA video series where I answer RIA related questions I get from advisors just like you. On today's episode I explain the various AUM "minimums" you should be aware of as you consider starting your own Registered Investment Advisor (RIA).
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #8: This episode is from video #8 of the Transition To RIA video series where I answer RIA related questions I get from advisors just like you. On today's episode I explain the frequency of regulatory exams you can generally expect to experience as your own Registered Investment Advisor (RIA).
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #7: This episode is from video #7 of the Transition To RIA video series where I answer RIA related questions I get from advisors just like you. On today's episode I explain what the process is (or isn't, for that matter) regarding Outside Business Activities (OBAs) as your own RIA.
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #6: This episode is from video #6 of the Transition To RIA video series where I answer RIA related questions I get from advisors just like you. On today's episode I explain whether or not you can have discretionary accounts in the Registered Investment Advisor (RIA) model.
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #5: This episode is from video #5 of the Transition To RIA video series where I answer RIA related questions I get from advisors just like you. On today's episode I explain the length of time you can expect that a full registration of a new Registered Investment Advisor will take to formally complete.
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #4: This episode is from video #4 of the Transition To RIA video series where I answer RIA related questions I get from advisors just like you. On today's episode I explain the actual logistical steps involved in formally establishing your own Registered Investment Advisor.
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #3: This episode is from video #3 of the Transition To RIA video series where I answer RIA related questions I get from advisors just like you. On today's episode I explain what the difference is between a Registered Investment Advisor (RIA) and an Investment Advisor Representative (IAR).
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #2: This episode is from video #2 of the Transition To RIA video series where I answer RIA related questions I get from advisors just like you. On today's episode I explain what determines whether you would need to register your RIA with the SEC vs the state your reside in.
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com
Episode #1: This is question #1 of the Transition To RIA video series where I answer RIA related questions I get from advisors just like you. On today's question I answer the macro question of why, as a financial advisor, should you be considering transitioning your practice to the Registered Investment Advisor (RIA) model.
About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 20 years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. On his website he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.
Website: TransitionToRIA.com