Transition To RIA Podcast

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-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.

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-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 misconceptions about the RIA model.

• You can’t take your legacy commission business with you…..false.
• You’ll spend all your time on compliance…..false.
• You can’t use alternative investments…..false.
• The technology is inferior…..false.

I could go on and on.

In this episode of the Transition To RIA question & answer series, I address another falsehood: You can’t accommodate clients who have concentrated stock positions.

You can indeed.

Come take a listen!

Show notes: https://TransitionToRIA.com/can-i-accommodate-concentrated-stock-positions-as-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. On his website (TransitionToRIA.com) he 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.

Imagine I challenged you to a one-on-one game of basketball.

We each use the same equipment. The rules of basketball apply to both of us.

One caveat: You must play with one arm tied behind your back.

Sound fair? Or an unfair advantage?

If such a scenario seems preposterous, consider if you’re currently a one-armed player as an advisor.

The Registered Investment Advisor ("RIA") model provides financial advisors an advantage over advisors not in the model.

In this episode I explain 13 of those advantages.

Come take a listen!

Show notes: https://TransitionToRIA.com/what-are-13-ways-that-registered-investment-advisors-have-an-unfair-advantage

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. On his website (TransitionToRIA.com) he 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.

Want to know the dirty little secret of real estate expense for advisory practices?

You need to pay for the expense of your office as a fixed cost, not a variable cost via your payout.

The difference in approaches, particularly if you own your office building, could potentially result in millions of additional dollars to your net worth by the time you retire.

In this episode I discuss why and how to pay for office expense as a fixed cost, as well as additional ways you can decrease the expense even further.

Come take a listen!

Show notes: https://TransitionToRIA.com/how-can-i-reduce-or-eliminate-my-real-estate-office-expense-as-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. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

What is a corporate RIA?

You're possibly already affiliated with one and don't realize it.

Worse, you could be affiliated, and don't realize if it's even competitive or not.

As the trend to fee-based advisory relationships continues, the concept of a "corporate RIA" will become increasingly prevalent.

In this episode of the Transition To RIA question and answer series, I explain how corporate RIAs came to be, what sort of offerings currently exist, and what they'll need to do to be competitive going forward.

Come take a listen!

Show notes: https://TransitionToRIA.com/what-is-a-corporate-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. On his website (TransitionToRIA.com) he has a large catalog of free videos, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.

I am frequently asked how the economics of the Registered Investment Advisor ("RIA") model compare to the broker/dealer model.

The first step in a comparison is to calculate your existing broker/dealer payout.

However, you can't simply refer to a payout grid table, and conclude that is your payout. There is a reason advisor compensation plans generally run 20+ pages!

What eventually flows to your pocket, is often far different from what the grid table would indicate.

In this episode of the Transition To RIA question and answer series, I explain how to calculate your true net payout.

Come take a listen!

Show notes: https://TransitionToRIA.com/how-to-calculate-your-true-net-broker-dealer-payout/

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 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.

Ever been told you shouldn't go the RIA route because you won't get any support? You'll be on your own? You'll be so busy doing administrative tasks you won't have time to be an advisor?

Often, the people making such declarations have ulterior motives. Perhaps it's a branch manager, or home office executive that doesn't want to lose you from their firm.

There is an entire ecosystem supporting the RIA model that makes such statements irrelevant. There are now even fully "SUPPORTED INDEPENDENCE" approaches that make it possible to replicate and improve upon what you have now, while gaining all that the independent model provides.

In this episode of the Transition To RIA question and answer series, I explain what these offerings are and when they might be a fit for your practice

Come take a listen!

Show notes: https://TransitionToRIA.com/what-is-a-supported-independence-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 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.