Please ensure Javascript is enabled for purposes of website accessibility Skip to content



Related Posts

Ready to Grow Your Business Fast?

Here’s How I Grew Five Businesses, and Eventually Sold One to a Fortune 500 Company.


The Main Reasons You Should Start an RIA Firm

We are observing a rise in the number of advisors considering starting their own independent registered investment advisor (RIA) firm as the financial services sector continues to expand. And this blog post will discuss the benefits of setting up an RIA firm.

Autonomy with an RIA Firm

In the 2019 Breakaway to Independence Survey by TD Ameritrade, advisors ranked “greater control” as their top reason for switching to the independent RIA model (34%). The truth is that when you launch an RIA, you have total authority over all business-related decisions. So, if you value your independence, establishing an RIA can be the best course for you.

Alignment with Your Client

To put it simply, a better business prioritizes the needs of its clients. A typical broker must propose an appropriate investment for a customer at the time. In contrast, you have a fundamental and continuing obligation to work in your client’s best interests. Being appropriate does not imply that it is the client’s best investment. It is, therefore, not surprising that many customers and financial advisors strongly prefer the RIA model, especially as clients continue to become more informed about the critical distinctions between the fiduciary and regular brokerage models.

Income Possibility


The figure below shows that as an RIA, you may decide how much revenue your company can keep up to 100%. With this freedom, you have total control over your costs and fees, allowing you to decide how to run your company to generate the most money. Additionally, suppose you opt to launch your own RIA. In that case, you may increase your business’s equity for a more significant long-term return if you decide to monetize or sell the company in the future.

Although the cost to start an RIA is not small, these costs are decreasing over time due to technological advancements, competition among custodians, and industry backing from groups that prioritize increasing public access to financial advice.

Select Your Technology Team for Your RIA Firm

When you choose your technology for your RIA firm, you get to pick the goods that best meet your company’s needs. You are the best person to understand your company’s requirements as the owner of your RIA firm, and you can deal with items that serve your interests. If you aren’t already knowledgeable about it, technology may also be a complex subject to tackle, so do your homework carefully.

Start with a CRM when making your IT selections. Pick one with a wide range of integrations. Ensure that it integrates with your email and serves as a dependable location to save meeting notes, new client contacts, and task-tracking information. Additionally, you should have a logo, domain name, and website of your own. With information about your staff, culture, goal, and values, your company website may serve as a comprehensive introduction to your company.

Lastly, you need a trustworthy billing system that you and your clients can utilize efficiently. Selecting a billing system that works closely with your primary custodial and performance reporting system will be much simpler.

Individual and Professional Development

Few things are more upsetting than getting to a point in your career where your employer prevents you from growing personally and professionally. You may transition from being an employee to a company owned by starting your own RIA firm. You will be able to recognize your capabilities and make the most of them for your company. Those who launch their own RIA businesses and work for themselves typically earn 40–50% more than they did as employees.

small business coach