In most scenarios, passing the Series 65 exam is the prerequisite to become licensed as an Investment Advisor Representative.

However, there are scenarios where the 66, a CFP, or maybe even a 7 are still applicable.

It's important to understand how your practice profile, both today and going forward, impacts the licenses you may need in the RIA model.

In this episode (#151) of the Transition To RIA question & answer series, I break down the licensing scenarios 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/what-licenses-do-i-need-for-the-ria-model/

About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors between $50M and $1B 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 is no golden goose when it comes to affiliation models in the wealth management industry.

Wirehouses, independent broker-dealers, RIAs all have pros and cons.

Anyone who suggests otherwise is either ill-informed or being disingenuous.

So when considering pathways for your advisory practice, it's important to understand how those pros and cons compare.

In this episode (#150) of the Transition To RIA question & answer series, I explain the pros and cons of 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-are-the-pros-and-cons-of-the-ria-model/

About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors between $50M and $1B 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 misconception about the RIA model is that certain investment solutions such as variable annuities and alternatives (alts), are unavailable for client use.

That is incorrect.

Regarding variable annuities, you can generally continue using new products going forward while also accommodating your existing legacy positions.

It's a matter of understanding how the options work, the logistics involved, and which solution providers to use.

In this episode (#149) of the Transition To RIA question & answer series, I explain how you can use variable annuities 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/can-i-use-variable-annuities-in-the-ria-model/

About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors between $50M and $1B 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 you start your own RIA, or join an existing one, choosing which custodian to use is an important part of the decision process.

As with choosing most solution providers for your practice, many variables should be evaluated. Price is one of them.

So how much does a custodian cost?

For better or worse, there is a very nuanced answer to that.

On this episode (#148) of the Transition To RIA question and answer series, I explain what you should expect to pay (or not) for custodial services.

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-a-custodian-cost/

About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors between $50M and $1B 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.

Over the past decade, all the (now tired) excuses for why advisors shouldn't move to the RIA model have fallen.

To name a few:

• "The technology is not as good."
• "You won't have access to the same level of investment solutions."
• "Clients want the big brand name on the door."

Not only are these arguments no longer true, but the RIA model now generally provides a superior solution.

But what about servicing HNW and UHNW clients?

Can such clients be accommodated the same, or even better, in the RIA model?

In this episode (#147) of the Transition To RIA question & answer series, I explain how supporting such clients is not just possible, but generally more favorable 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/can-i-service-high-net-worth-and-ultra-high-net-worth-clients-as-an-ria/

About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors between $50M and $1B 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 long it takes to register an RIA.

The simple answer is typically 45-90 days, though in some scenarios it could take significantly longer.

Equally important is knowing when (and how) to file in relation to when you plan to launch your firm.

Furthermore, this is just one step in an overall transition process that typically takes 6-9 months.

On this episode (#146) of the Transition To RIA question and answer series I explain the variables that determine the timeline for registering 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/how-long-does-it-take-to-register-a-ria/

About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors between $50M and $1B 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 I explain to advisors they likely will want legal advice regarding navigating their departure from their current firm, I sometimes hear a range of responses:

• “My buddy left the firm last year, and I’m just going to follow what he did.”

• “I’m already independent, so none of that applies to me.”

• “I made a transition 7 years ago, so I already have it figured out.”

In reality, most advisors, regardless of their current affiliation model, have at least one (if not multiple) reasons to need such advice: non-solicits, non-competes, Reg SP, broker protocol, deferred comp, forgivable loans, RSUs, taking team members with them, etc.

On this episode (#145) of the Transition To RIA question & answer series I explain why and how such legal advice is part of a typical transition.

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/when-do-you-need-legal-advice-as-part-of-an-ria-transition/

About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors between $50M and $1B 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 often encounter a phenomenon with long-tenured advisors.

As they've been born and bred at a broker-dealer, they simply assume they always need a broker-dealer.

And these are advisors whose practices have become nearly, if not entirely fee-based.

Yet their ingrained DNA tells them a broker-dealer is still required.

So when considering transitioning their practice to an independent model, they only consider broker-dealer solutions.

That is a classic case of the tail wagging the dog.

With a predominantly fee-based practice, they need an RIA, not a broker-dealer.

On this episode (#144) of the Transition To RIA question & answer series I explain how an RIA compares to an Independent Broker-Dealer, and why if you have a primarily fee-based practice you should not let the tail wag the dog.

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-compare-to-an-independent-broker-dealer/

About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors between $50M and $1B 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 minimum AUM needed to have your own RIA?

Beware of anyone that gives you an immediate answer, with an immediate AUM figure to that question.

There are often bias or ulterior motives behind such quick declarations.

While the regulatory answer is $0 AUM needed to start an RIA, there are reasonable arguments to be made regarding at what AUM level it begins to make sense to do so.

But even then, what makes sense for one advisor, might not make sense for another.

On this episode (#143) of the Transition To RIA question & answer series I discuss the variables involved with what size your practice should be before considering starting 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-is-the-minimum-aum-needed-to-have-your-own-ria/

About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors between $50M and $1B 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 pathways into the RIA model.

Each with pros and cons.

One of the pathways is to join an existing RIA.

When I first note the latter to advisors, there is often a misconception about what that entails.

I’ll often hear… “I don’t want to sell my practice.”

That “flavor” of RIA exists, but it’s by no means the only flavor available.

In fact, there are over a dozen variables that distinguish one RIA from another.

Some RIA offerings will be of no interest to you, whereas others could be very appealing.

In this episode (#142) of the Transition To RIA question & answer series I explain how to evaluate an RIA to potentially join.

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-an-ria-to-join/

About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors between $50M and $1B 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.