Transition To RIA Podcast

It doesn’t happen often, but I do get asked……can I have foreign clients as an RIA?

This is relevant if you have such clients in your current affiliation model, or you aspire to add them to your clientele upon transitioning to the RIA model.

Similar to if you’re at a broker/dealer now, the answer is generally….it depends.

In this episode of the Transition To RIA question and answer series, I explain when it is possible to do, as well as discuss the solution providers you’ll need to lean on to be able to do so.

Come take a listen!

Show notes: https://TransitionToRIA.com/can-i-have-foreign-clients-as-an-ria/

About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 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. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.

There are two ways to improve the profitability of a business.

Increase revenues or decrease expenses.

Preferably, you do both.

The RIA model provides far greater flexibility than any other advisor model with your ability to impact each.

How you manage that flexibility is what determines your bottom line.

In this episode of the Transition To RIA question & answer series I discuss how to maximize the profitability of an RIA.

Come take a listen!

Show notes: https://TransitionToRIA.com/how-to-generate-the-highest-income-with-your-ria

About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 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. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.

There are two ways to grow an RIA.

Organically from expanding existing client relationships and bringing on new clients.

And inorganically, from acquiring practices and/or attracting advisors to join your RIA and bringing their clients with them.

When doing the latter, it is important to understand the competitive landscape and what is expected of joining advisors.

In the latest episode of my RIA question and answer series, I discuss 7 mistakes to avoid if trying to attract advisors to join your RIA:

1. You do not have a defined offering.
2. You have a weak value proposition.
3. You price your offering as a payout.
4. You don’t have an organized process for attracting and onboarding advisors.
5. You don't explicitly state that joining advisors will have ownership of their client relationships.
6. You try to punch above your weight.
7. You don't know your competition.

Come take a listen!

Show notes: https://TransitionToRIA.com/what-are-mistakes-to-avoid-when-trying-to-recruit-advisors-to-join-your-ria

About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 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. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.

I admit it, I critique the wirehouse brokerage model a LOT.

Considering how much it contrasts with the RIA model, there’s lots to be critiquing!

What if the wirehouse model could be improved though?

In the latest episode of my RIA question and answer series, I discuss 8 ways the wirehouse model could become more competitive with the RIA model:

1. Think of your advisors as your clients.
2. Tell your advisor “clients” they are all free agents.
3. No gimmicks with the payout.
4. Better yet, invert your payout.
5. Eliminate deferred compensation.
6. No forced cross-selling.
7. Tier your approach to compliance.
8. Acknowledge the advisor owns the client relationship.

Come take a listen!

Show notes: https://TransitionToRIA.com/how-would-i-improve-the-wirehouse-brokerage-model

About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 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. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.

Walk into a hair salon and ask the stylist if you need a haircut. Any guesses what their answer will be?!

The same can be said depending on who you ask about the timing of transitioning your practice to a new firm or affiliation model.

In this episode of the Transition To RIA question & answer series I help you block out the noise, and focus on the variables that matter.

1. Who you should listen to, and who you shouldn’t.
2. Timing considerations worth recognizing.
3. How I answer this question myself.

Come take a listen!

Show notes: https://TransitionToRIA.com/should-you-change-affiliation-models-during-challenging-market-conditions

About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 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. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.

An important role financial advisors perform for their clients is to help them avoid mistakes with their financial well-being.

Likewise, when advisors transition their practice to the RIA model, there are mistakes that should be avoided as well.

In the latest episode of my RIA question and answer series, I discuss five common mistakes to be aware of and to avoid:

Mistake #1 - You don’t obtain legal advice when breaking away.

Mistake #2 - You only consider one firm/model.

Mistake #3 - You don’t learn about the responsibilities of the RIA model.

Mistake #4 - You let the transition process take longer than necessary.

Mistake #5 - You don’t get independent advice.

Come take a listen!

Show notes: https://TransitionToRIA.com/mistakes-financial-advisors-make-when-transitioning-to-the-ria-model

About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 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. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.

Several independent broker-dealers have introduced “IAR-only” affiliation options. Is this something you should consider for your own practice?

In this episode, I address 5 topics related to these new channel offerings:

1. What is an IAR-only affiliation option?
2. Why are broker-dealers creating them?
3. How do these IAR-only channels compare to alternatives in the marketplace?
4. Who will these IAR-only channels mostly appeal to?
5. What broker-dealers can do to improve their IAR-only offerings.

Come take a listen!

Show notes: https://TransitionToRIA.com/what-do-i-think-of-iar-only-channels-at-broker-dealers

About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 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. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.

Don't confuse the expenses of running an RIA as being "new" expenses compared to what you have now.

Depending on your current affiliation model, you are likely already paying these expenses, they are just embedded in the payout you receive.

In the RIA model, you have much more control over how to manage these expenses.....TO YOUR BENEFIT!

In the latest episode of my RIA explanatory series, I discuss five of the largest expense items of a modern day advisory firm, and how to best manage them:

1. Office space
2. Team members
3. Technology
4. TAMP
5. Compliance

Come take a listen!

Show notes: https://TransitionToRIA.com/what-are-the-largest-expenses-of-running-an-ria

About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 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. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.

I have a lot of conversations with advisors that are in the wirehouse W2 type model, who want to move into a more independent model.

Sometimes the default reaction they have is, "Maybe I should go into the independent broker-dealer model first and then move into the RIA model later." The phrase I sometimes hear is, "Maybe it's a step too far to go from this employee model I’m in now, all the way to the RIA model."

I challenge that by asking, "Why is that? Why do you feel you need a stepping stone to get to where you eventually want to get to?"

On this episode I go into some of the reasons that I am given as to why some advisors feel they think they should go to an independent broker-dealer model first before they get to the RIA model. And why that way of thinking is usually based on misconceptions.

Come take a listen!

Show notes: https://TransitionToRIA.com/should-i-join-an-independent-broker-dealer-first-or-should-i-go-straight-to-the-ria-model

About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 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. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.

A common misconception about the Registered Investment Advisor ("RIA") model is that you must be 100% fee-only to transition your practice to it.

Most advisors, at the time of transitioning, are in fact not 100% fee-only. Many never plan to be going forward either.

While the assets under the RIA itself are fee based accounts, there are several solutions to accommodate the existing commission part of your practice.

In this episode of my RIA explanatory series, I address five different approaches for your commission assets:

1. Walk away
2. Convert
3. Sell
4. Use an RIA-friendly broker/dealer
5. Park and advise

Come take a listen!

Show notes: https://TransitionToRIA.com/what-should-i-do-with-my-legacy-commission-business/

About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors to learn and understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has nearly 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. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors fully understand the RIA model and how it would apply to their unique circumstances.