Q144 - How Does An RIA Compare To An Independent Broker-Dealer?

I often encounter a phenomenon with long-tenured advisors.

As they've been born and bred at a broker-dealer, they simply assume they always need a broker-dealer.

And these are advisors whose practices have become nearly, if not entirely fee-based.

Yet their ingrained DNA tells them a broker-dealer is still required.

So when considering transitioning their practice to an independent model, they only consider broker-dealer solutions.

That is a classic case of the tail wagging the dog.

With a predominantly fee-based practice, they need an RIA, not a broker-dealer.

On this episode (#144) of the Transition To RIA question & answer series I explain how an RIA compares to an Independent Broker-Dealer, and why if you have a primarily fee-based practice you should not let the tail wag the dog.

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-does-an-ria-compare-to-an-independent-broker-dealer/

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.