Transition To RIA Podcast

Participants in our industry often talk about moving to another broker/dealer.But when they say “broker/dealer” they are also often referring to an RIA.Or conversely, you'll hear voices discussing joining or starting an RIA.Yet that too, could also potentially involve a broker/dealer as well.Confused yet?In this episode (#127) of the Transition To RIA question and answer series I explain the difference in these two structures and how the terminology is used properly.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/what-is-the-difference-between-an-ria-and-a-broker-dealer/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

The RIA model typically provides far more flexibility with how you can charge your clients for your services.AUM, flat, subscription, hourly are some of the options.Even the most used “AUM fee” comes with additional flexibility.The frequency in which you charge the fee.What pricing tiers you use.Whether you charge in advance or arrears.Whether the fee is based on a single date in time (ex: quarter end), or an average of the period.The ability to pair an AUM with another fee type (ex: flat fee.)In this episode (#126) of the Transition To RIA question and answer series I explain the different fee types most often used in the RIA model.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/what-type-of-fees-can-i-charge-my-clients-in-the-ria-model/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

How difficult is a transition to the RIA model?It's difficult enough that some advisors and teams can never bring themselves to cross the bridge.Whereas other advisors and teams learn how to navigate the process, and successfully do so.There are nonetheless still “difficult” parts to a transition:Overcoming the uncertainty of a model you're not yet familiar with. (This is solved through education.)The workload involved with putting all the pieces into place, particularly down the stretch as the transition nears.The sprint to move your clients post-launch.In this episode (#125) of the Transition To RIA question & answer series I explain how to successfully navigate these “difficult” steps.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/how-difficult-is-a-transition-to-the-ria-model/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

You don't have to be 100% fee-only to transition your practice to the RIA model.There are potential ways to “solve” for your remaining legacy commission assets.One potential way is to utilize an “RIA-Friendly Broker-Dealer.”But what exactly is an RIA-Friendly Broker-Dealer?How does it work?Is it available for you to use?How much does it cost?In this episode (#124) of the Transition To RIA question and answer series, I explain what an RIA-Friendly Broker-Dealer is and when you might consider using one.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/what-is-an-ria-friendly-broker-dealer/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

So, you want to start an RIA?You want the better economics that come with it?The increased flexibility you'll have with your practice?But are you aware of the additional responsibilities that come with it as well?As advantageous as the RIA model is, there is no free lunch.It's important to understand what the additional responsibilities are, to determine if they are something you are able/willing to accommodate.And with your specific situation, whether the added benefits of the model outweigh the added responsibilities.In this episode (#123) of the Transition To RIA question & answer series, I explain what the additional responsibilities are of having your own RIA.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/what-additional-responsibilities-come-with-your-own-ria/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

Advocates of the RIA model will often passionately proclaim “THE PAYOUT IN THE RIA MODEL IS 100%!!!”With such generous economics, the RIA path must surely be best, right?For many advisors, it is the best path to take. But boastful headline numbers alone are not what determines that.For starters, it's not a “payout” at all. As your own RIA, you're simply receiving the fee revenue you generate from your clients for the value and services you provide for them.From that revenue, you must then deduct the expense associated with providing that value.Then with multiple variables now involved, you must be careful to do a true apples-to-apples comparison to what “payout” you have currently.In this episode of the Transition To RIA question & answer series I explain how the 100% “payout” in the RIA model works and how it would look for your practice.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/is-the-payout-in-the-ria-model-really-100-percent/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

You studied for months to take the Series 7.You anxiously sat through the multi-hour test. Perhaps with your livelihood on the line.You finished the test and nervously awaited the result.You passed!Years, if not decades have now since past.You're considering transitioning your practice to the RIA model, but don't want to “lose” the 7 you worked so hard for all those years ago.But do you have to?In this episode of the Transition To RIA question & answer series I explain if you must drop your 7 to go RIA.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/do-i-have-to-drop-my-series-7-if-i-go-ria/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

“Platform fees” in our industry are the “resort fees” of the hotel industry.Just as a hotel room rate can be distorted by the addition of mandatory resort fees……payouts (particularly at independent broker/dealer models) are frequently distorted by additional platforms fees.The existence of a fee by itself is not necessarily a bad thing, provided the value and services received in return are commensurate.The first step in determining that is identifying when platform fees are present.While such fees are most often associated with independent broker/dealer models, there are scenarios where they could be applicable in the RIA model as well.In this episode (#120) of the Transition To RIA question & answer series, I explain when platform fees exist in the RIA space.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/are-there-platform-fees-in-the-ria-model/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

If you are an advisor at a firm that utilizes deferred compensation as part of the comp plan, ask yourself why your firm is doing that.If the value and resources they provide you are as superior as they claim to be, why would they need arbitrary barriers to keep you from leaving?Wouldn't you simply want to stay?Regardless of the spin, deferred compensation is a retention tool to benefit the firm, not to benefit their advisors.So how best can you manage this reality if you are considering transitioning to the RIA model?In this episode (#119) of the Transition To RIA question and answer series I explain how to navigate the potential loss of deferred compensation.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/how-to-make-up-for-lost-deferred-comp-when-transitioning-to-the-ria-model/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

I am often asked, “How large a practice do I need, to have my own RIA?”Equally important is the other end of the spectrum as well, “Is my practice too large to potentially join an existing RIA?”There are three main pathways to transition your practice to the RIA model:

A common misconception about the RIA model is that you must be 100% fee-only with your practice.While many RIAs are indeed 100% fee-only, and others aspire to eventually be, there is no requirement to do so.Many RIAs operate under a hybrid arrangement, allowing them to continue servicing legacy and/or new brokerage relationships.Other RIAs work to slowly transition their current fee/commission practice towards a fee-only structure.In this episode (#117) of the Transition To RIA question and answer series, I discuss several approaches RIAs use to “solve” for their remaining commission assets.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/how-to-solve-for-your-remaining-commission-assets/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

You've spent months researching the RIA model.Months performing due diligence.Months planning for the actual transition.The day to transition arrives.You resign from your firm.You pick up the phone and call your first client to tell them about your new plans.But what do you say?How should you say it?What might your clients say?In this episode of the Transition To RIA question and answer series, I provide 9 tips on how to explain to clients your transition to the RIA model.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/how-to-explain-to-clients-your-transition-to-the-ria-model/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

What is the payout in the RIA model?Simple question, not so simple answer.To perform an accurate comparison, you must:Properly calculate your current payout.Understand how payouts are expressed in the RIA model (spoiler: there is far less uniformity in the RIA space.)Consider what value is provided to you for the payout, and what you're responsible for sourcing yourself.Consider how the resulting payout figures compare across channels and offerings.In this episode of the Transition To RIA question and answer series, I expand on each of these variables.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/how-does-an-ria-payout-compare-to-a-broker-dealer-payout/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

Transitioning your practice to the RIA model involves a lot of work, and at times, a fair amount of stress.But ask anyone that has made the transition, and they'll tell you the destination is worth the journey.You should prepare yourself, though, for what the journey will entail.In this episode of the Transition To RIA question & answer series I explain what the most stressful parts of a transition are, and how to prepare for them.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/what-are-the-most-stressful-parts-of-starting-an-ria/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

If you start your own RIA, will you be able to participate in your custodian's client referral program?First starters, do you know what these programs are?Or which custodians have them?Or who is eligible, and likely to be able to participate in them?In this episode of the Transition To RIA question & answer series I address these questions, and more!Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/can-i-join-a-custodians-client-referral-program/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

Whether in our personal or professional lives, most everything in life revolves around motivations.What motivates you to run your advisory practice as you do?What motivates you to pursue certain hobbies and passions?What motivates your kids to make the decisions they do?When financial advisors and teams reach out to me to explore the RIA model, I typically start by asking what has motivated them to do so.Having asked hundreds of advisors this question, the answers typically revolve around a desire for more flexibility with their practice, and/or better economics.In this episode of the Transition To RIA question and answer series I provide examples of what the specific motivations often are. Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/what-motivates-advisors-to-transition-to-the-ria-model/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

How long does a transition to the RIA model take?The time needed is impacted by variables such as the circumstances of the advisor/team, which pathway into the model is chosen, etc.It is complicated further due to certain steps in the process being out of the control of the advisor/team as to how fast they can be completed.In this episode of the Transition To RIA question & answer series I address which steps in the process are the most time consuming.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/what-is-the-most-time-consuming-part-of-transitioning-to-the-ria-model/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

There are several reasons advisors choose to join an existing RIA versus starting their own.But that's not the only decision to be made.There are a wide variety of “flavors” of RIAs to then choose from.Differing economics, flexibility, approach to branding, taxation, succession solutions, are just some of the many variables that can differentiate them.But of all the options, which is the most popular?In this episode of the Transition To RIA question & answer series I explain how these solutions are often differentiated…..and which is the most popular.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/what-is-the-most-popular-type-of-ria-to-join/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

When a new client comes to you for help managing their financial life, there are many steps involved. Some are more exciting for the client than others.Opening accounts.Pulling old statements.Filling out financial profiles.Those are some of the important, though less glamorous steps.Talking through life goals.Travel plans in retirement.Ways to help family and important causes.Those are the exciting steps!But the latter can't be achieved, without the former.It is the same when transitioning your practice to the RIA model. There are necessary, those less glamorous steps involved.However, there are exiting parts as well.In this episode of the Transition To RIA question & answer series I explain what the exciting parts of a transition are.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/what-is-the-most-exciting-part-about-starting-an-ria/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

"Fee-based" revenue is often "reoccurring" revenue..........but "reoccurring" revenue is not necessarily "fee-based" revenue.Confused yet?Often incorrectly used interchangeably, these two phrases can mean entirely different things.Depending on the profile of your practice, it's a difference that could determine whether your practice is a fit for the RIA model….or not!In this episode of the Transition To RIA question & answer series I explain how these two variables differ, and what it could mean for your practice.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/what-is-the-difference-between-reoccurring-revenue-fee-based-revenue/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

You've likely heard it before, the economics are better in the RIA model.But why is that?To name a few:Higher top line revenueAbility to control expensesOperating leverageTax advantagesFlexibility to grow your practice fasterHigher enterprise valueIt's important to understand how these variables compare to your current affiliation model.In this episode of the Transition To RIA question & answer series I explain why the economics of your practice would be better in the RIA model.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/are-the-economics-better-in-the-ria-model/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

Do you own or rent your home?What advice do you give your clients about owning vs renting?While there are exceptions, owning typically has far better long-term advantages over renting.Yet, many advisors don't practice what they preach when it comes to the real estate they use for an office.An advisor that spends their entire career in a W2 model (ex: wirehouse), experiences the same real estate disadvantages that a life-long home renter does.In this episode of the Transition To RIA question & answer series I explain what the real estate advantages of the RIA model are.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/what-is-the-real-estate-advantage-of-the-ria-model/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

Will the marketplace assign a higher valuation to your practice in the RIA model?While there are multiple variables that go into a valuation calculation, there are some basic economic truths involved.Consider an analogy.You own a house and desire to sell it. Naturally, you'd like the highest price you can get for it.Imagine if you lived in an HOA community and the HOA got to dictate how your sale process will occur, under what terms you can sell the house, who the potential buyers can be, etc.Will that result in the highest valuation?Or perhaps your community doesn't have an HOA, but hypothetically the only eligible buyers of your house must come from within your neighborhood itself.Will that result in the highest valuation?You might find both scenarios preposterous. But that is the equivalent reality many advisors face, due to the affiliation model they're in, when trying to derive value from their practice at the end of their careers.In this episode of the Transition To RIA question & answer series I address some of the variables of why a practice valuation is higher in the RIA model.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/will-my-practice-have-a-higher-valuation-in-the-ria-model/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

You want to transition your practice to the RIA model.You are currently affiliated with a multi-channel firm. One of those options is their “RIA channel.”Should you make the “internal” transition of your practice to it?This question is more complicated than it seems:Are you sure you know what your firm is referring to when they say “RIA channel?” Firms use the same vernacular to refer to different models.Is an internal move to the channel even an option? (Spoiler: In some instances, it's not!)Are you aware of how the internal option compares to external options available to you as well?These are just some of the variables that should be part of your due diligence.In this episode of the Transition To RIA question & answer series I clarify if and when it makes sense to consider an internal option.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/should-i-transition-to-the-ria-channel-at-my-multi-channel-firm/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

“I don't want to join a firm that's owned by private-equity?”Why is that?“They just want to build it and sell.”But isn't your current firm (whatever that may be) for sale and susceptible to change?“No, not with the kind of firm I'm at.”Are you sure about that???Advisors often overweight the risks involved with joining a firm that has private-equity backing, while underweighting in comparison the risks with other firm structures.On this episode of the Transition To RIA question & answer series, I explain how advisors are better off focusing on how to protect themselves from possible ownership changes, versus worrying as much about who the owners are.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/should-i-avoid-joining-a-private-equity-backed-ria/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

Super-OSJ or RIA?Let's start with what is an OSJ?Let alone, what makes an OSJ “Super?”And then how does it compare to an RIA?If you are considering joining either, it is important to understand the distinct regulatory and competitive differences between them.In this episode of the Transition To RIA question & answer series I explain how these two models differ, and why you might choose one over the other for your practice.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/what-is-the-difference-between-a-super-osj-and-an-ria/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

“Hybrid”“Hybrid RIA”“Hybrid Broker-Dealer”Are they the same, or are they different?Depends on who you ask!Solution providers will often tout having a “hybrid” solution. Their version of hybrid though might be very different than what you are assuming they are referring to.In this episode of the Transition To RIA question & answer series I explain how these different “hybrid” solutions vary.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/what-is-the-difference-between-a-hybrid-ria-and-a-hybrid-broker-dealer/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

To celebrate the 100th episode of the Transition To RIA question & answer series, I was joined by special guest, Michael Kitces.He graciously accepted my request to come on the show where I would attempt to challenge him with seven questions about the RIA model he has never been asked before:Will we ever see the equivalent of a Chick-Fil-A in the RIA industry (a systematized business with both hugely passionate clients and operators?)If you had to choose to run a $50M, $500M, or $5B RIA, which would you choose and why?If you were king for a day 20 years ago, and could change one thing about our industry, with no ramifications, what would it have been?What do you think the RIA model will look like 30 years from now?If you were a mutual fund wholesaler today, how would you try to work with RIAs?If you were asked to help invest $100M into the industry, how would you deploy the capital?If you had more capacity, is there a business in our industry you would try starting, and perhaps others should be trying themselves?Spoiler: Out of the seven, six he had never been asked before. Can you guess which one I missed the mark on?Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/seven-questions-about-the-ria-model-michael-kitces-has-never-been-asked/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

Thinking about starting an RIA?Beware of industry voices bent on scaring you out of it.Whether due to naivety or because they're agenda driven to keep you from making a change, there is no shortage of people expressing falsehoods about the RIA model.The resulting misconceptions often relate to managing compliance as your own RIA.In this episode of the Transition To RIA question & answer series, I debunk several such misconceptions.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/what-do-advisors-fear-about-compliance-with-the-ria-model/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

I'm an advocate of the RIA model.Better economics and increased flexibility are why it continues to be the fastest growing channel in the industry.But it's not for all advisors.Whether because of the profile of your practice, your desires as a financial advisor, or external variables somewhat out of your control, the model may not be a good fit for you.In this episode of the Transition To RIA question & answer series I explain when the RIA model is not a fit.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/is-the-ria-model-right-for-your-practice/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

There are a lot of things in life in which getting to a “no” is easier than getting to a “yes.”Deciding which RIA to join is one of them.With several strong value propositions in the marketplace to choose from, determining which one to say yes to takes time.The easiest way to begin the process is to narrow the field by knowing which solutions you should quickly say “no” to.In this episode of the Transition To RIA question & answer series I explain which type of RIAs you should exclude from your consideration.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/what-type-of-rias-should-you-not-join/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

Ideally you will never be in a situation where you must ask what is the quickest you could transition your practice to the RIA model.A transition typically involves a methodical, well thought out process.But there are some circumstances where an expedited transition might be necessary.In this episode I explain when those circumstances might occur, and how quickly you can make a change if needed.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/what-is-the-quickest-you-could-transition-to-the-ria-model/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

You don't choose which car to buy based on which dealership brand happens to be closest to where you live.You don't choose which house to buy based on which listing you happen to see first on Zillow.The tail should never wag the dog.Important decisions should be made based on the underlying variables, not based on which decision is logistically easier to make.The same thing applies when picking what type of firm to transition your practice to.In this episode, I explain why choosing a broker-dealer is always easier than choosing an RIA, but if you let the tail wag the dog, you get what you pay for.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/why-is-it-harder-to-pick-an-ria-to-join-than-a-broker-dealer-to-join/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

There are many participants in our industry who run around gleefully messaging the big upfront bonus checks wirehouses are known to write.Have you ever considered why that is their opening line?As they say in Texas, are they “big hat, no cattle?”Before considering taking a big upfront check for joining a firm, it is important to understand the trade-offs you're forced to take in return.In this episode of the Transition To RIA question & answer series I explain what those trade-offs are, and how it compares to pursuing an RIA path instead.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/why-go-ria-when-wirehouses-offer-huge-upfront-checks/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

There are no specific regulatory or legal definitions of "Corporate RIA" or "Independent RIA."Instead, we must rely on how the terms are commonly used in the marketplace.Corporate RIA verbiage is most often used in reference to the RIA component of large broker/dealers, particularly independent broker/dealers.Independent RIA verbiage is typically used in reference to owning your own RIA.On this episode, I discuss not only these two definitions, but additional ways in which the verbiage is used, often in ways you should be cautious about.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/what-is-the-difference-between-a-corporate-ria-and-an-independent-ria/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

You've done your due diligence on the RIA model.You've determined which path into the model to use.You've mapped out the transition steps.But how much is it going to cost to make the transition?There are hard costs, as well as your own peace of mind, that must be considered.In this episode I explain what those costs are and how to plan for them.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/how-much-cash-should-i-have-saved-before-transitioning-my-practice-to-the-ria-model/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

Transitioning your practice to an existing RIA platform is a path chosen by many advisors.An important part of your due diligence of a firm is their payout.In this episode I explain how payouts in the RIA model are generally structured, as well as the payout levels you can expect depending on the type of solution you choose to partner with.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/what-is-the-payout-if-i-join-an-ria/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

Transitioning your practice to the RIA model gives you the luxury of creating your own brand.Having a website to showcase your brand, and provide a way for clients and prospective clients to find you, is an important part of it.On this episode I cover the logistical and creative considerations involved with acquiring a domain name (i.e. the ".com" part) for your new website.Seven tips covered in the episode:Use a “.com” domain.Chose a domain that is either your brand name, or descriptive of your client offering.The shorter the domain, the better.Trademark concerns aren't as much of a worry.Buy a domain immediately if you think you might want to use it.Make sure ownership details of your domain are kept private.You can buy a domain before hiring a marketing/website company.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/what-website-domain-should-i-use-with-my-new-ria/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

Many advisors seek to transition their practice to the RIA model by joining an existing RIA offering.With different platform types, value propositions, and economic considerations, how do you choose the one that is the best fit for your practice?On this episode of the Transition To RIA question and answer series, I am joined by Penny Phillips, cofounder of Journey Strategic Wealth, to discuss how to evaluate an RIA to join.We cover not only the variables you'll want to understand and consider, but also how you can expect the due diligence process to play out.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/how-do-i-evaluate-a-potential-ria-to-join/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

Determining whether to transition your practice to the RIA model does not have to be intimidating.The entire process can be simplified down to three key decisions, sequentially addressed in order:Is the RIA model a fit for my practice?What are the available pathways into the model?Who are the solution providers that support my chosen pathway?In this episode of the Transition To RIA question & answer series I explain how these three decisions guide you through the process.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/what-are-the-three-key-decisions-involved-with-considering-the-ria-model/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

If you transition your practice to the RIA model there are a LOT of variables to consider, and decisions to be made.What technology to use is one of the most important of them.Within the technology "stack," your Customer Relationship Management ("CRM") tool is arguably the most important component.In this episode of the Transition To RIA question & answer series I explain why the CRM is so important, and how you should consider implementing it with your practice.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/what-is-the-most-important-software-for-a-new-ria/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

There are multiple tasks involved with running an RIA practice.Advisors tend to be passionate about the client facing tasks, and less so the behind-the-scenes administrative and operational parts.What if you designed an RIA where you outsourced most (all?) of the non-client facing tasks?What if you could spend nearly all your time on just the parts of the business you really enjoy?In this episode I explore how far you can potentially take outsourcing within an RIA.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/how-to-run-a-large-ria-with-only-one-person/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

You've done your homework to learn how the RIA model works.You've considered the different pathways into the model.You've performed due diligence on the needed solution providers.It all makes sense. It's a fit for your practice. You're ready to get started!But, is there anything that could prevent you from doing so?Yes, there are hurdles that, depending on your circumstances, could be insurmountable. In this episode of the Transition To RIA question & answer series I explain what those hurdles are and when they could impact you.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/what-could-prevent-an-advisor-from-starting-an-ria/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

How much does it cost to start a Registered Investment Advisor ("RIA") practice?As often occurs with the advice that financial advisors give their own clients, the answer is "it depends."For new advisors first entering the industry who plan to run a virtual practice, the cost might be as little as a few thousand dollars. For a large team catering to HNW clients, who plan to transition their practice from an existing broker/dealer firm, the cost could potentially be $100,000+.There are several variables that go into the total cost equation. Some of the variables have static prices, while others provide a wide range of options for advisors to choose from.In this episode I explain what the main cost variables are and how you can start to pencil your own start-up estimate.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/how-much-does-it-cost-to-start-an-ria/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

Obtaining Errors & Omissions ("E&O") insurance for your Registered Investment Advisor ("RIA") is not only a best practice, it is usually now a requirement for most RIAs.E&O is professional liability insurance that protects your RIA from risks ranging from the proverbial "fat-fingered" trade entry error, to defending yourself against meritless lawsuits.Most custodians now require RIAs using their clearing services to maintain a minimum level of E&O coverage.In this episode I explain what those coverage levels typically are and the nuances between coverage types to be aware of.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/how-much-errors-and-omissions-coverage-does-my-ria-need/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

A common frustration by financial advisors in the broker/dealer model is a burdensome compliance department.This is often the result of the firm managing compliance to the lowest common denominator amongst thousands of advisors at the firm.An inaccurate assumption about the RIA model is that joining an RIA with similar growth aspirations will lead to a compliance burden no better than what the advisor is trying to get away from at their broker/dealer.In this episode, I explain why this is a faulty comparison and how the RIA model is different.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/wont-large-rias-have-the-same-challenging-compliance-departments-as-broker-dealers/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

A tale often told by broker/dealer management is that B/D technology is superior to the technology available in the Registered Investment Advisor ("RIA") model.A few decades ago, they were right!There was a time that broker/dealers had better economies of scale with technology investments as they had more advisors (users) to spread the investment cost across, versus what any one tech provider in the then RIA space could achieve.That investment advantage, led to better technology.That paradigm is now exactly opposite.With the growth of the RIA model over the past few decades, large RIA tech providers now have more users than any one broker/dealer has, thus reversing the economies of scale advantage.This is only one of the ways that RIA model technology has become superior to broker/dealer technology. In this episode I give a breakdown of what those advantages are.Come take a listen!Show notes: https://TransitionToRIA.com/is-broker-dealer-technology-better-than-ria-technology/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

It is common for advisors transitioning their practice to the RIA model to want to bring their existing support team members with them.Those team members are often not only critical to the advisor's practice in general, but will likely play a key role in the transition process itself.In this episode of the Transition To RIA question & answer series, I am joined by attorney Rich Chen to discuss what options you have for bringing team members with you, and how to navigate the process safely.Come take a listen!Show notes: https://TransitionToRIA.com/can-i-take-my-employees-with-me-if-i-transition-to-the-ria-model/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

There are many advantages for why financial advisors transition their practices to the Registered Investment Advisor ("RIA") model. Equally compelling are the advantages for their clients.It is important to be able to articulate to your clients what the RIA model is, why you are transitioning your practice to it, and how it benefits them.I frequently ask advisors that have already made the transition, how they explained it.In this episode I provide several talking points to consider, and I share my all-time favorite answer from an advisor on how they explained it to their clients.Come take a listen!Show notes: https://TransitionToRIA.com/how-do-i-explain-the-ria-model-to-clients/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

"Can I manage client assets myself as an RIA?"This is a simple question, with a simple answer. “Yes”More telling is why advisors are asking it in the first place.It is often due to concern that their ability to manage assets under their current affiliation model could become constrained, or even taken away from them at some point in the future. (Of no fault of their own, but due to firm wide policy changes.)Thus, they're wanting to confirm this possibility would be eliminated if they transitioned their practice to the RIA model.Could your ability to manage client assets be taken away? In this episode of the Transition To RIA question and answer series, I explain how it works in the RIA model, and why you might one day be yearning for it.Come take a listen!Show notes: https://TransitionToRIA.com/can-i-manage-client-assets-myself-as-an-riaAbout Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

Episode notes: The Registered Investment Advisor ("RIA") model remains the fastest growing channel in the industry, with no indication the trend will slow anytime soon.Year after year, financial advisors seek out the better economics, flexibility, and higher enterprise valuations afforded by the model.With such advantages, why don't even more advisors (than already are) make the transition with their practices?In this episode of the Transition To RIA question & answer series, I address the main variables holding advisors back. Have you fallen trap to them?Come take a listen!Show notes: https://TransitionToRIA.com/why-dont-more-financial-advisors-transition-to-the-ria-modelAbout Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 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. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.