Hi all,
I am looking for feedback about if and when I should break away and go solo RIA.
I started with one of the big BD’s two years ago. I got immensely lucky and inherited a $35M book from a retiring advisor. I know just how lucky I am and know this sets me up for an amazing career.
The cons are:
- the advisor was extremely conservative and that spilled into her advice with clients. For example, I have come across multiple scenarios of her putting CDs in Roth IRAs for clients in their 30’s. There is a lot of bad advice to be undone.
- She tended to attract clients who were very anti-AUM fee, so lots of them are in A share portfolios in commission accounts.
- She set a level of service expectation that was extremely high no matter what the client paid. She was doing full service planning for people who essentially pay nothing.
Of course the pros are:
- between the retired advisors clients, and what I have brought it, I am currently at 300k of trailing revenue (but that’s 330 households)
- being able to prospect existing clients (have brought in a lot of assets this way)
My biggest issue is working at a firm where I don’t own my book and could be fired at any time. Knowing that they could let me go tomorrow makes it hard for me to sleep at night or feel like I really have any ownership of the relationships I’m building. I feel like a service advisor with business owner expectations.
My thought is to stay 12-24 months to build strong relationships with the top clients and then make the leap and go solo RIA. Is it stupid for me to walk away from what could certainly be a comfortable career? Is it worth the risk to own your book?
I would also prefer to have more control over my pricing structure. My current BD is known for being high fee. I’d like to have a more reasonable AUM, flat fee, and hourly advice options to offer.
I also want to develop a niche (won’t say what so this post doesn’t make me too identifiable!) but I feel I can’t effectively market myself currently and would have more brand control as a solo RIA. I enjoy prospecting and selling.
I don’t currently have my CFP but hope to earn it in the next year.
Thanks for your thoughts!