Making the move to become an independent RIA is a pretty huge decision. And maybe you still aren’t sure whether it’s right for you. That’s okay. No choice as big as this should be taken lightly.
It’s possible that some of your doubts may be based on misinformation. So, let’s dispel any myths floating out there about becoming an RIA.
“For me, the big issue was control over my business, our products, and my client relationships … and to do what’s right for clients.”
—Sean Curley, The Retirement Planning Specialists, LLC
Becoming an Independent RIA: Myth vs. Reality
My practice isn’t large enough
RIAs span across all asset and production levels
The transition is too hard and I will lose clients and revenue
It’s a big commitment, yes. But most advisors have very successful transitions and many report a growth in revenue within the first two years*
I will have to give up my securities licenses and commissionable business
You can choose the hybrid model, which lets you be independent and maintain your licenses. That way, you can conduct both fee- and commission-based business
If I go independent I may make less money and lose my retirement plan
Independent firms’ economic structures can be designed to allow advisors to keep 100% of their revenue while working to build business equity that can be monetized upon retirement
As an independent RIA, I will not have access to robust technology
RIAs have access to a vast selection of fintech options designed to help them save time and better serve their clients. Check out our tech offerings and see how they compare
I won’t have access to a broad range of investment products
By becoming an independent RIA, you have the ability to select the investment products most appropriate for your clients. Asset custodians often try and work with RIAs to add new investment vehicles to their product lineup
It will be cumbersome and difficult for me to establish myself as an RIA
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