For many advisors, the RIA model gives them the greatest opportunity for success and enables them to do the best possible job for their clients. Is it the right model for you too?
" There's much more flexibility, and the potential for growth with the RIA channel."
Managing Principal, JFS Wealth Advisors
More advisors are embracing the RIA model than ever before. The RIA industry has been steadily gaining assets since 2008. Looking further back, it's grown 40% since 20051, while wirehouses have only grown 5%.1 Looking forward, the RIA channel has the potential to grow 30% over the next two years.2
Almost three-quarters, or 73%, of clients followed advisors who moved to an independent RIA firm in 20103. A full 61% of clients followed their advisors within the first three months.3
Nearly all clients - a total of 90% - are satisfied with their advisor's move to an independent RIA firm, according to our research. A full 65% of clients are "very satisfied" with their advisor's move.3
Where are RIAs coming from? Before moving to an independent RIA firm, 27% of advisors say they worked at a wirehouse and 25% said they worked at an independent broker dealer.3
From 2005 to 2011, the fee-based approach has grown by 25%. Advisors at independent RIAs now report that 54% of their business is fee business.
Ready to run a pro-forma and business evaluation? We can walk you through the process.
Contact Us or call 800-934-6124
1 Sources: Cerulli "State of the Wirehouses" - Nov '09, "Advisor Metrics" - 2011 Update, "RIA Service Agent Survey" - 3Q11. 4Q11E RIA assets based on the ratio of 2010 RIA Service Agent Survey results to the 2010 overall RIA channel results applied to the ratio of 3Q11 RIA Service Agent Survey results to 3Q11 Schwab plus TD Ameritrade Institutional results applied to 4Q11 Schwab plus TD Ameritrade Institutional results. Wirehouse assets for 4Q11E based on applying the ratio of 2010 actual results for the wirehouses with the results in Advisor Metrics for 2010 to the actual 4Q11 results for Morgan Stanley, Merrill Lynch, UBS, and Wells Fargo. RIAs include dually registered advisors.
2 Cogent Research, Advisor Brandscape 2011
3Advisor Evolution Study, 2010