What Is The Most Popular Type Of RIA To Join?
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.
I'm Brad Wales with Transition To RIA (TransitionToRIA.com). This is episode #110 of my question and answer series where I answer RIA related questions I get from advisors just like you.
What I do: At Transition To RIA I help financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model.
RESOURCES & LINKS
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🔹 Website: https://TransitionToRIA.com/
🔹 Show notes: https://TransitionToRIA.com/what-is-t...
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🔹 List of all questions I've answered: https://transitiontoria.com/videos/
🔹 Podcast: https://transitiontoria.com/podcast/
🔹 Whitepaper ("11 Ways The Economics Of The RIA Model Are Superior To Other Advisor Affiliation Options"): https://transitiontoria.com/whitepapers/
🔹 Transcription of video:
What is the most popular type of RIA to join? That is today's question on the Transition To RIA question and answer series. It is episode #110.
Hi, I'm Brad Wales with Transition To RIA, where I help you understand everything there is to know about why and how to transition your practice to the RIA model.
If you're not already there, head to TransitionToRIA.com where you’ll find all the resources I make available from this entire series in video format, podcast format. I have articles, I have whitepapers. All kinds of things to help you better understand the model.
Again, TransitionToRIA.com.
On today's episode, we're going to talk about what is the most popular type of RIA to join?
For those of you that have listened to or watched many of my episodes, you'll know that I talk about how there are three primary ways you could transition your practice into the RIA model. All of them have pros and cons. All of them have reasons you might choose one over the other. That's part of what I do is help you understand these three.
On one end of the spectrum is you start your own RIA. On the other end of the spectrum is you join an existing RIA platform. And then in the middle there's a flavor where you start your own RIA, but you're still outsourcing a lot of the tasks of running the RIA.
I'm not going to dive into all three because that's not the point of this episode, but the idea is there are different reasons different advisors go down all three of those paths.
If you determine, for example, that joining an RIA platform is the best path for you, then the question is….which one is the best model of that to go with? What is the most popular way that's done?
The reality is, there are different kinds of, I use the term, flavors of RIAs. That's everything from an RIA down the street that happens to have an empty desk in the corner that would love to have you come sit in it, to as I talk about often, purpose-built platform RIAs.
Purpose-built platforms are not just some RIA that has grown and now has an empty desk and they want you to sit in it. These are firms that from the beginning realized there's a lot of advisors that want the advantages of the RIA model, but don't necessarily desire to be responsible for all the blocking and tackling pieces of running their own RIA.
Managing their own compliance, managing the tech stack, doing the fee billing, those sorts of things. There are platforms that say…. we have gone out to the marketplace, we have brought together what we feel is the best in breed set of solutions. We've bundled it up, we have more scale than you will ever have. Here's how we price it, here's why we think you should consider utilizing our platform versus doing it on your own.
There are pros and cons to both approaches. This episode is not to suggest that one is better than the other. Because all that matters is for you individually, for your specific practice, which one is better than the other? I can't make a blanket statement (about which is better) because every advisor and team is different. Con't.....
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