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....
Jul 19, 2022•29 min
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 mysel...
Jun 27, 2022•29 min
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 l...
Jun 09, 2022•24 min
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 ...
May 26, 2022•29 min
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: Off...
May 09, 2022•26 min
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 ston...
Apr 25, 2022•31 min
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 ...
Apr 06, 2022•23 min
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-wirehou...
Mar 23, 2022•27 min
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 ...
Mar 08, 2022•20 min
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 gener...
Feb 22, 2022•30 min
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...
Feb 03, 2022•21 min
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....
Jan 24, 2022•31 min
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-m...
Jan 04, 2022•29 min
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 eith...
Dec 13, 2021•54 min
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 s...
Nov 22, 2021•24 min
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: - How will you brand and market your new practice? - With newfound flexibility, will you add to your service offering? - Are there additional client profiles you’d like to target? Also important is how you handle the nec...
Nov 02, 2021•32 min
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 ...
Oct 14, 2021•24 min
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 insuran...
Sep 23, 2021•38 min
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 lea...
Sep 08, 2021•29 min
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 c...
Aug 23, 2021•43 min
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 thei...
Aug 02, 2021•26 min
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...
Jul 14, 2021•35 min
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 h...
Jun 28, 2021•28 min
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 di...
May 27, 2021•16 min
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 exper...
May 12, 2021•36 min
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 ...
Apr 26, 2021•25 min
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 solic...
Apr 07, 2021•41 min
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 advi...
Mar 15, 2021•24 min
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 unders...
Feb 22, 2021•32 min
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 Repres...
Feb 01, 2021•13 min
