Q47 - 10 Reasons To NOT Start An RIA?

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.