Working as an independent RIA gives you the potential to keep more of what you earn and creates the potential to build equity in your own firm.
There are a lot of variables that determine how much you can expect to earn as an RIA. Your clients, your business model, your location, and your work style, to name a few. We can work with you to develop a pro-forma income statement based on your current practice.
" For me, the big issue is control over my business. "
Founder/Managing Member, The Retirement Planning Specialists, LLC
Many RIAs operate a fee-based model – meaning you earn a flat percentage from client assets – as compared with a broker-dealer commission-based model where earnings come from transaction charges. So profits come in relation to your client's success, not from how much activity you create in your client accounts.
In addition to having a fee-based business, you have the option to hold on to your commission-based business when you become an RIA. More and more advisors are becoming hybrid RIAs – dually registered as an independent advisor and as a registered representative through an independent broker-dealer. We can help you decide whether the hybrid model is right for you and introduce you to firms in our Broker Dealer Network – firms that are flexible and friendly to RIAs.
Want to learn more about the finances of running your business?
Explore the Financial Considerations