Q160 - How Do I Repay A Forgivable Loan To Move To The RIA Model?

When an advisor is recruited to a wirehouse (or similar type broker/dealer) an "upfront check" is generally involved.

These are often referred to as "forgivable loans."

While seemingly lucrative, there are, of course, always strings attached.

If circumstances warrant the advisor leaving that firm before the forgivable period ends, there is an expectation that some of that upfront check must be repaid.

In this episode (#160) of the Transition To RIA question & answer series, I explain logistically what occurs with such upfront checks, and how repayment generally occurs.

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 notes: https://TransitionToRIA.com/how-do-i-repay-a-forgivable-loan-to-move-to-the-ria-model/

About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors between $50M and $1B understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.