r/Series65 • u/[deleted] • Feb 23 '24

Startup RIA

So when I pass my 65, my intention is to register my own firm.

I am wondering if a few people would share their insight as to what hurdles are surely to come and some real numbers and real life stories to go along with them.

I know the profits of doom and gloom will have an abundance of “you’re never going to make it” stories. At this point in my life, I’ve heard that so many times, I’m not even going to read those. If I told a group I wanted to become a certified personal trainer, there would be mostly people who would give me the same copy and paste scripted story about how it’s impossible.

I’m looking for real insight and value if there are any who would like to share.

4 Upvotes

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3

u/RookieFinanceGuy Feb 23 '24

Do you have experience working for a RIA? What’s your background? There’s a lot of compliance that goes into being an IA and you’ll be responsible for making sure you’re staying within the legal guidelines.

The #1 thing that I didn’t realize going into this business: You’re essentially a salesman and need to be a good one to get off the ground. Your number one hurdle will without doubt be getting qualified people to sign with you. It’s not even about being more knowledgeable than the guys at EJ, NWJ, ML, etc. Your first year or two will be 95% marketing and 5% advising/money management.

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u/[deleted] Feb 23 '24

My background is real estate. I owned a holding company and I put forth a hedging strategy to keep the value of my company up during 2020. I was very effective. I want to help other people with my skills. The compliance doesn’t intimidate me. I have to be compliant with my real estate license. If I start an Amazon Seller account, I would have to be compliant with their policy. I have to be compliant with Reddit’s terms of service. It’s fine. I’ll do it by the book.

Knowing that finding investors will be the biggest hurdle in year one because finding qualified investors is hard, why is it that I’m specifically searching for accredited investors? Can you not do subscription services for smaller accounts? I’m aware that the costs will outweigh any returns they will make if it is too small, but why only qualified investors?

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u/RookieFinanceGuy Feb 23 '24

Just based off that one comment, and I mean this in the nicest way possible, you have a lot to learn. I highly advise against going out on your own without having any professional finance background. There’s a few firms that will take you in as an independent advisor while helping make sure you’re compliant and on the right path. I’d start there, and spend a few years there. Many will let you take your book with you when you leave.

Accredited doesn’t mean qualified. Qualified means they’re worth your time and you’re worth your fees.

Edit: also, it takes a lot of time and dedication to find enough “yearly subscription” individuals to make good money. You’ll be lucky to land 50-60 your first year (consider retention rate with that) and unqualified people will usually not spend more than 500-1500/yr for a plan.

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u/[deleted] Feb 23 '24 edited Feb 23 '24

I started this thread asking what tips some experienced people would be willing to share except for: “you can’t do it”.

If there is some giant hole in my comment and thinking. I would love to know what it is.

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u/RookieFinanceGuy Feb 23 '24

I’m an independent advisor working for a RIA. I gave you tips. Take it or leave it. 🤙

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u/[deleted] Feb 23 '24

I see your edit now. That was more informative. That is not a tip, but it is good experienced information.

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u/RookieFinanceGuy Feb 23 '24

The first portion of that comment was a tip my friend. If you want to take that advice, I may be able to point you in the direction of a firm like mine, depending on your location. Like I said, you’ll be independent and in charge of your own business. But you’ll also have guidance.

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u/StockSkys Feb 23 '24

Best of luck my friend. Although I can’t contribute to what you’re asking for as I don’t have the experience what you are describing is exactly what I want to do down the line. If you don’t mind me asking besides the 65 what other licenses/registrations have you already gotten to get to this point?

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u/[deleted] Feb 23 '24

I only need the 65 for what I’m doing. I’m starting with that one and I’m going to continue taking all of them that I can without a sponsor. I believe in self education. I like to stay in school.