Is The RIA Route Right for You?

Is the RIA Route Right for You?

Think before you leap toward the RIA status

It sounds so appealing — going on your own! The freedom to run our own business, fleeing from the
pressure of quotas and the mandate to promote proprietary products can be tempting. Many a seasoned
advisor has considered making the leap to registered independent advisor (RIA), or starting with a hybrid
model to dip their toes in the waters. Predictions reveal registered independent advisors will soak up 28% of the market share by 2018, so we understand why it all sounds so appealing.
Still, not so fast. It’s a big decision. Slow down and give serious consideration to why you’re making the change. Ask yourself a few critical questions:

First, where does the majority of your book come from?

Analyze the assets for which you are responsible. Are you mostly doing commission-based or advisory business, the latter of which is fast becoming the norm? If at least 50% of your book comes from advisory business, it’s typically a better time to consider going as a registered independent agent (RIA).

Total assets under your management should also count. A good benchmark dictates you should have achieved $100 million AUM before making the change. If you’re sitting at less than 50%, consider operating under a corporate firm’s RIA to mitigate fees until you’re ready. Once advisory business hits 70%, it might make more sense to customize offerings by creating a hybrid RIA. Proceed with caution!

Next, what’s motivating the urge to make the move? There are all kinds of reasons advisors want to make the switch. Many want to build more robust firms and invite additional reps on board. Sometimes advisors outpace the resources and support the broker-dealer offers, especially when the broker-dealer prioritizes the needs of the client over those of the broker. Sounds like a reasonable time to move, right?

Still, some advisors get stuck, unable to make the switch because they fear their more boutique firms will never match the credibility and established business structures of high profile names. But often smaller firms inspire more trust and confidence because it’s your name on the door — your risk, your gain. If you’re confident in your expertise and ability to garner continued new business, then prepare … and proceed with caution.

Finally, can you thrive under complete autonomy? It’s downright tantalizing to think about freedom, but not everyone is cut out for being his or her own boss. Some people depend on the structure of managers and deadlines to stay ahead of the game. Being your own boss also means you’ll have to invest extra time building a brand, searching for office space, securing equipment, developing business processes, managing compliance, and coping with the intricacies of hiring and retaining staff. That responsibility is all yours. Then again, it’s all yours!

If you’re making the leap from a wirehouse and relied heavily on commissions and structure, it may take time to adjust: the RIA model requires the most independence. But if you’re focused, determined, and confident, building your own business from the ground up can be an exhilarating change. As with any critical transition, take time to evaluate your decision, seek wise counsel, and list out the pros and cons. A cautious “no” is better than a quick “yes!”

You can always consider the same question later.

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It’s one of the most important—and personal—questions a financial advisor can ask. Whether it’s frustrations with admin fees, limited platform flexibility, or just a gut feeling that you’ve outgrown your current firm, the decision to move shouldn’t be rushed. The right time to leave isn’t just about market timing—it’s about life timing.

If you’re weighing your options, we recommend this quick read: The Best Time for a Move—a blog and podcast episode that walks through key signals it may be time to explore a transition.

There’s no one-size-fits-all answer. Going independent offers more control, higher payouts, and brand autonomy—but with added responsibilities. Wirehouses provide built-in infrastructure, brand recognition, and turnkey support—but often come with more restrictions and fees.

The real question is: Which model makes the most sense for your business goals and lifestyle?

To make a confident decision, you need to understand the economics behind both paths. Start by securing transition offers from top firms—independent and wirehouse—so you can compare side-by-side.

Get Your Offers in Hand

Our services are 100% free to financial advisors. We don’t charge you a dime. If you decide to make a move, the new firm pays us a finder’s fee—similar to a recruiter. But unlike recruiters, we’re not tied to any one firm, so we work to find your best fit, not theirs.

Want the full breakdown? Check out our blog post: How We Get Paid

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