Are you weary from constant change and broker-dealers more focused on their own goals? True RIA-like broker-dealers and independent RIAs are delivering better practice results. Innovative models and partners can provide better efficiencies and profits, while reducing conflicts of interest, a key area for regulators going forward.
Need to keep your commission business? We've got you covered. A growing number of IBDs have already adopted RIA-like pricing to benefit your entire practice. Moreover, our turnkey (independent) RIA partners have direct broker-dealer relationships to service those accounts. Simply, we show you how to lower costs, boost profits, mitigate compliance risk, and use platforms better suited for overall satisfaction.
Benefit from industry trends and qualified partners to optimize your practice through no stress conversation. More practices want to manage their own RIA to maximize flexibility but want technology, compliance and consulting help to pull it all together. Our specialist partners guide truly independent advisors to greater success and satisfaction.
OUR PROCESS
01
Discovery Meeting: We discuss what's working and what's not. We review your practice at a deeper level, leading to better client and team experiences. We share how successful practices are structured and focused.
02
Present Options: We consider innovative partner models and service providers who align well with your practice metrics. Find your best model, review how your practice is positioned today, and where you see yourself in 5 to 10 years.
03
Evaluation Period: Receive follow up information. Review qualified options, choose introductions, engage like-minded partners.
04
Forge Connections: We schedule and attend initial IBD and RIA partner meetings, and remain as active in the process as you want. We stay in contact with you from the initial consultation through your choice and transition.
RIA Choice helps you choose the right business model for you. Learn more about your options below.
Independent Broker Dealer
Many BDs have a culture of fee and expense disclosure, instead of focusing on the best interest of clients and advisors.
Fees to access turnkey asset management platforms and institutional custodians are highly profitable for BDs- and involve minimal or limited maintenance activity after account set-up. Advisor and client fees significantly contribute to forgivable loans, especially fees from advisory and cash accounts, and regulators have taken notice. However, with the right partner you can enjoy a broader and better cost environment. Many BDs(especially smaller and niche-focused ones) offer very competitive pricing, more flexibility, greater independence, and better service overall.
Turnkey RIA
Independent RIAs that provide essential structure and functionality to run your independent practice. For a reasonable all-in fee they provide essentials such as compliance, supervision, technology, operational support, and more. Many have niche focuses that align perfectly with your business model.
If you don’t want to run a business on top of a business (managing your own RIA is a lot of work, effort, and responsibility) this is one of the most compelling options.
Partnering with the right Turnkey RIA frees you to spend more time with clients, less time in the office, while saving clients from excessive and needless fees. Net more revenue and enjoy a higher level of independence, flexibility, and service.
Tuck-In RIA
Affiliate with an RIA firm or BD-RIA to do the heavy lifting. Common scenarios include W-2 employee or captive advisors breaking away from wire houses and banks. Amenities include office space, equipment, staff, technology, practice management, and large upfront forgivable notes.
Payouts are significantly lower to cover these costs, 40% range is common. You may be required to promote your affiliates' brand and be asked to sell all, or a majority ownership of your practice, by contract.
However, selling more than 50% equity ownership of your book gives the buyer control over your business, and these partner contracts are often 10 years. However, you will receive capital to spend as you wish.
If this is your best fit, and you're captive status, play it safe and hire a securities attorney to review contracts, so you know exactly what you're signing. This small investment will cover your bigger investment, your practice. As the saying goes, better to spend $5,000 now than $50,000 later.
Hybrid RIA
A hybrid RIA is an independent RIA firm where advisors run their commission business through an approved external BD relationship.
Maintaining a BD relationship allows comprehensive investment solutions that promote client retention and attract new ones. Many external BDs offer 100% payout on your RIA business if you generate sufficient transactional revenue.
Maximize your client investment choices with more solutions available than ever as RIAs now offer alternative investments, variable, and fixed insurance on a fee basis.
Register Your Own RIA
For the most independent advisor, who will need to register their firm at the state or federal level. If you're fiercely independent and have the assets and staff to make it work, this could be a good option for you. You receive 100% payout and are responsible for everything: compliance, technology, administrative support, etc.
We provide compliance and practice support relationships to do the heavy lifting for you, making this option more attractive. This includes registration, agreements, advertising, websites, written policies and more- almost everything except placing trades.
Net revenue from a turnkey RIA versus the costs of running your own RIA is often a financial break-even for advisors in the $500K revenue range. This let's you shed significant responsibility, time, and liability, and focus more on your business.
