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.