Episodes

Whether in our personal or professional lives, most everything in life revolves around motivations. What motivates you to run your advisory practice as you do? What motivates you to pursue certain hobbies and passions? What motivates your kids to make the decisions they do? When financial advisors and teams reach out to me to explore the RIA model, I typically start by asking what has motivated them to do so. Having asked hundreds of advisors this question, the answers typically revolve aro...

How long does a transition to the RIA model take? The time needed is impacted by variables such as the circumstances of the advisor/team, which pathway into the model is chosen, etc. It is complicated further due to certain steps in the process being out of the control of the advisor/team as to how fast they can be completed. In this episode of the Transition To RIA question & answer series I address which steps in the process are the most time consuming. Come take a listen! P.S. Prefer vid...

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 ...

When a new client comes to you for help managing their financial life, there are many steps involved. Some are more exciting for the client than others. Opening accounts. Pulling old statements. Filling out financial profiles. Those are some of the important, though less glamorous steps. Talking through life goals. Travel plans in retirement. Ways to help family and important causes. Those are the exciting steps! But the latter can’t be achieved, without the former. It is the same when...

"Fee-based" revenue is often "reoccurring" revenue..... .....but "reoccurring" revenue is not necessarily "fee-based" revenue. Confused yet? Often incorrectly used interchangeably, these two phrases can mean entirely different things. Depending on the profile of your practice, it's a difference that could determine whether your practice is a fit for the RIA model….or not! In this episode of the Transition To RIA question & answer series I explain how these two variables differ, and what it ...

You’ve likely heard it before, the economics are better in the RIA model. But why is that? To name a few: Higher top line revenue Ability to control expenses Operating leverage Tax advantages Flexibility to grow your practice faster Higher enterprise value It’s important to understand how these variables compare to your current affiliation model. In this episode of the Transition To RIA question & answer series I explain why the economics of your practice would be better in the RIA mod...

Do you own or rent your home? What advice do you give your clients about owning vs renting? While there are exceptions, owning typically has far better long-term advantages over renting. Yet, many advisors don’t practice what they preach when it comes to the real estate they use for an office. An advisor that spends their entire career in a W2 model (ex: wirehouse), experiences the same real estate disadvantages that a life-long home renter does. In this episode of the Transition To RIA que...

Will the marketplace assign a higher valuation to your practice in the RIA model? While there are multiple variables that go into a valuation calculation, there are some basic economic truths involved. Consider an analogy. You own a house and desire to sell it. Naturally, you’d like the highest price you can get for it. Imagine if you lived in an HOA community and the HOA got to dictate how your sale process will occur, under what terms you can sell the house, who the potential buyers can be...

You want to transition your practice to the RIA model. You are currently affiliated with a multi-channel firm. One of those options is their “RIA channel.” Should you make the “internal” transition of your practice to it? This question is more complicated than it seems: Are you sure you know what your firm is referring to when they say “RIA channel?” Firms use the same vernacular to refer to different models. Is an internal move to the channel even an option? (Spoiler: In some instances, it...

“I don’t want to join a firm that’s owned by private-equity?” Why is that? “They just want to build it and sell.” But isn’t your current firm (whatever that may be) for sale and susceptible to change? “No, not with the kind of firm I’m at.” Are you sure about that??? Advisors often overweight the risks involved with joining a firm that has private-equity backing, while underweighting in comparison the risks with other firm structures. On this episode of the Transition To RIA question & an...

Super-OSJ or RIA? Let’s start with what is an OSJ? Let alone, what makes an OSJ “Super?” And then how does it compare to an RIA? If you are considering joining either, it is important to understand the distinct regulatory and competitive differences between them. In this episode of the Transition To RIA question & answer series I explain how these two models differ, and why you might choose one over the other for your practice. Come take a listen! P.S. Prefer video? You can find this enti...

“Hybrid” “Hybrid RIA” “Hybrid Broker-Dealer” Are they the same, or are they different? Depends on who you ask! Solution providers will often tout having a “hybrid” solution. Their version of hybrid though might be very different than what you are assuming they are referring to. In this episode of the Transition To RIA question & answer series I explain how these different “hybrid” solutions vary. Come take a listen! P.S. Prefer video? You can find this entire series in video format on Yo...

To celebrate the 100th episode of the Transition To RIA question & answer series, I was joined by special guest, Michael Kitces. He graciously accepted my request to come on the show where I would attempt to challenge him with seven questions about the RIA model he has never been asked before: Will we ever see the equivalent of a Chick-Fil-A in the RIA industry (a systematized business with both hugely passionate clients and operators?) If you had to choose to run a $50M, $500M, or $5B RIA, w...

Thinking about starting an RIA? Beware of industry voices bent on scaring you out of it. Whether due to naivety or because they’re agenda driven to keep you from making a change, there is no shortage of people expressing falsehoods about the RIA model. The resulting misconceptions often relate to managing compliance as your own RIA. In this episode of the Transition To RIA question & answer series, I debunk several such misconceptions. Come take a listen! P.S. Prefer video? You can find th...

I’m an advocate of the RIA model. Better economics and increased flexibility are why it continues to be the fastest growing channel in the industry. But it’s not for all advisors. Whether because of the profile of your practice, your desires as a financial advisor, or external variables somewhat out of your control, the model may not be a good fit for you. In this episode of the Transition To RIA question & answer series I explain when the RIA model is not a fit. Come take a listen! P.S. P...

There are a lot of things in life in which getting to a “no” is easier than getting to a “yes.” Deciding which RIA to join is one of them. With several strong value propositions in the marketplace to choose from, determining which one to say yes to takes time. The easiest way to begin the process is to narrow the field by knowing which solutions you should quickly say “no” to. In this episode of the Transition To RIA question & answer series I explain which type of RIAs you should exclude fr...

Ideally you will never be in a situation where you must ask what is the quickest you could transition your practice to the RIA model. A transition typically involves a methodical, well thought out process. But there are some circumstances where an expedited transition might be necessary. In this episode I explain when those circumstances might occur, and how quickly you can make a change if needed. Come take a listen! P.S. Prefer video? You can find this entire series in video format on You...

You don’t choose which car to buy based on which dealership brand happens to be closest to where you live. You don’t choose which house to buy based on which listing you happen to see first on Zillow. The tail should never wag the dog. Important decisions should be made based on the underlying variables, not based on which decision is logistically easier to make. The same thing applies when picking what type of firm to transition your practice to. In this episode, I explain why choosing a b...

There are many participants in our industry who run around gleefully messaging the big upfront bonus checks wirehouses are known to write. Have you ever considered why that is their opening line? As they say in Texas, are they “big hat, no cattle?” Before considering taking a big upfront check for joining a firm, it is important to understand the trade-offs you’re forced to take in return. In this episode of the Transition To RIA question & answer series I explain what those trade-offs are, ...

There are no specific regulatory or legal definitions of "Corporate RIA" or "Independent RIA." Instead, we must rely on how the terms are commonly used in the marketplace. Corporate RIA verbiage is most often used in reference to the RIA component of large broker/dealers, particularly independent broker/dealers. Independent RIA verbiage is typically used in reference to owning your own RIA. On this episode, I discuss not only these two definitions, but additional ways in which the verbiage i...

You've done your due diligence on the RIA model. You've determined which path into the model to use. You've mapped out the transition steps. But how much is it going to cost to make the transition? There are hard costs, as well as your own peace of mind, that must be considered. In this episode I explain what those costs are and how to plan for them. Come take a listen! P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel....

Transitioning your practice to an existing RIA platform is a path chosen by many advisors. An important part of your due diligence of a firm is their payout. In this episode I explain how payouts in the RIA model are generally structured, as well as the payout levels you can expect depending on the type of solution you choose to partner with. Come take a listen! P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel. Show note...

Transitioning your practice to the RIA model gives you the luxury of creating your own brand. Having a website to showcase your brand, and provide a way for clients and prospective clients to find you, is an important part of it. On this episode I cover the logistical and creative considerations involved with acquiring a domain name (i.e. the ".com" part) for your new website. Seven tips covered in the episode: Use a “.com” domain. Chose a domain that is either your brand name, or descripti...

Many advisors seek to transition their practice to the RIA model by joining an existing RIA offering. With different platform types, value propositions, and economic considerations, how do you choose the one that is the best fit for your practice? On this episode of the Transition To RIA question and answer series, I am joined by Penny Phillips, cofounder of Journey Strategic Wealth, to discuss how to evaluate an RIA to join. We cover not only the variables you’ll want to understand and consi...