While creating an RIA can be a lucrative and rewarding career move, it’s no small undertaking. Navigating the ins-and-outs of what it takes to operate an RIA can be difficult and confusing. Luckily, there are a slew of resources available to aid financial professionals interested in creating an RIA.
Here are five articles to read if you’re interested in starting an RIA:
1. Meeting the Requirements to Start Your Own RIA Without Breaking the Bank by Andrew McFadden
In this guest feature on Michael Kitces‘ Nerd’s Eye View blog, financial planner Andrew McFadden shares his story of how he started his own RIA. McFadden discusses choosing an office space, determining a niche market opportunity, handling compliance issues and the costs for insurance, hardware, and software.
Also see another great guest feature on Nerd’s Eye View by Sophia Bera: Setting up an RIA and Starting a New Financial Planning Practice on Less than $10,000.
2. How and Why I’m Starting an RIA from Scratch and What I’m Spending to Make it Happen by Lyman Howard
In this piece, Lyman Howard discusses what it’s like to create an RIA completely from scratch, without any outstanding clients. Howard discusses his initial concerns when creating his RIA, and his experience during the first eight months of operation. He also discusses how he picked technology that fit well for his firm and surveys the importance of capitalizing on networking opportunities.
3. Going Solo–The True Costs of Starting Your Own Financial Planning Firm by Jeff Rose
In this blog, Jeff Rose discusses why he went independent and how he did it. He breaks down all the costs associated with his RIA, including compliance, setting up an LLC, insurance, financial technology, office expenses, etc. Rose creates a holistic picture of what it takes to start an RIA.
4. How to Start Your Own RIA Firm by Mike Patton
In this blog post, Mike Patton, the founder and president of Integrity Wealth Management, an RIA firm in Baton Rouge, La., outlines the 10 basic steps to creating an RIA. These steps include the process of registering an RIA and ensuring your firm in compliant. This article also discusses the potential legal issues surrounding leaving your current employer if you’re at a wirehouse or bank and even gives suggestions on how to attract new clients to your growing business.
5. The Nuts and Bolts of Starting a Registered Investment Advisory Firm: Making Your Decision a Reality by Craig Gordon
In this piece, Craig Gordon offers insight and suggestions from the perspective of a successful breakaway broker. He discusses the pros of forming a partnership, and writes about how to select custodians and financial technology based on the needs of your firm and client base. He even addresses how to communicate the change to your current clients, and how to onboard those clients to your new firm.