How have I never heard of you.....Respect to you Sir.....shame on the lack of rigor my finance teachers showed my class....shame on the rigid trash textbooks I had to finance.....Keep your passion Sir
HOT TIP - I put the youtube viewer speed on '2' (twice normal speed) and the animated quality of the presentation was entertaining, and it shortened the video from 21 minutes to just over 10 minutes. The video author looks like the identical twin of a tenant I had and it was a bit 'unique' at first - my tenant had a deliberate, sort of 'plodding' communication style and I said 'no - I'm doubling the video speed - this is an RIA topic' It worked.
Thanks for the advice Michael! What do you think of starting an RIA as a side hustle? I love my job and do well - but I also love helping people with personal finance and retirement investing. I've been thinking of studying for the Series 65 and begin small and adding a few clients slowly over time. I could definitely see it as a career after my current career closer to true retirement. Thoughts?
Doesn’t it make more sense to start with a firm and then take your clients with you when you start your own firm? Rather than start a firm with no clients and survive off debt
It depends on the firm, but in general if you start with a firm that pays a salary to service the clients then they're the firm's clients (and you'll have a non-solicit that prohibits you from asking them to come with you if/when you leave), or you're starting with a firm where your clients are your clients and your compensation will be whatever you bring in minus a cut to them for their platform/firm infrastructure (which means you still have to get your own clients and revenue and "survive off debt" until you get to breakeven).
Correct, office space would be considered separately, as in practice a lot of advisors start without a separate/dedicated office space. In part because of the Zoom pandemic environment, but even prior, a lot of advisors either rent office space as needed from shared office spaces like Regus (which isn't much when you have few or no clients yet), or simply work from a home office space and meet clients at their home, their office, or a third-party 'neutral' location like a coffee shop. See www.kitces.com/blog/mailbag-home-office-vs-outside-office-space-and-credibility-as-a-startup-financial-planner/ for further thoughts on this.
@@MichaelKitces my other question is re:compliance. If I’m I have my own RIA individual entity (I.E LLC) & IAR. Can I be my own “compliance officer”? Or should I find a company that can help me like “RIA in a box”?
@@troyflowers8605 You can be your own Chief Compliance Officer, and if you run your own RIA you technically HAVE TO be your own CCO. Firms like RIA In A Box and XYPN Compliance provide coaching and consulting services to support you in the role, as well as tech like SmartRIA to facilitate the process as the CCO, but from a regulatory perspective if it's your RIA you have to be the CCO for oversight purposes. Then build the support tech and/or consulting/coaching around you that you need.
@@MichaelKitces your insight is so valuable! I appreciate this so much! Last few quick questions.. what are a few of the investment platforms I can use to service my client's funds? TD Ameritrade? Fidelity? And its the issue of custody? If I place trades on behalf of my clients I would need to their permission via a Power of Attorney or something to that effect?
@@troyflowers8605 RIAs managing client portfolios typically use third-party RIA custodians. The biggest today are Schwab (Advisor Services), Fidelity (Institutional), and Pershing (Advisor Solutions). Many of the large platforms do have minimum asset requirements to get onto the platform though (or at least a requirement to show a robust growth plan that you'll get to $10M - $20M+ in relatively short order). Startup-friendly options including going through an advisor network (e.g., XY Planning Network gives access to Schwab with no asset minimums), or using a smaller RIA custodian like SSG (Shareholders Service Group) Institutional. Their platforms include all the requisite system and paperwork/agreements that it takes to be granted access to client access for trading (and also for billing if you decide to do an AUM fee).
The problem I see for minorities especially African-Americans is, black people should go out on their own and get started on their own without even joining an advisor reason why I say this, because blacks get the hate from both black and white, it is hard as the minority to get hired in The Firm somewhere specially in the area predominantly black predominately white it's hard for a black man to get a job in that field the best thing a black man can do is start his own firm from scratch even no experience, he or she will get the experience going forward, especially for minorities and I'm speaking mainly about African Americans oh, that's the best route because you are not going to get sponsored very now there may be some spots, that are more friendlier. But, what if a minority lives in the all-white area, or an all-black area, the only real way this can work for minorities in the diverse area to start your own firm, I'm telling this from experience
Wouldn't lack of customers cause them to go out of business? You've gotta be able to market yourself selling yourself is just as important as whatever alpha you can create. If you need need to borrow money to set this up you probably are not a very good trader/investor.
Michael E. Kitces_____The Man_______The Myth________The Legend !!!
How have I never heard of you.....Respect to you Sir.....shame on the lack of rigor my finance teachers showed my class....shame on the rigid trash textbooks I had to finance.....Keep your passion Sir
Incredible value here ! Thank you so much ! Will be studying for my 65 later today.
Thoughtful and Excellent Presentation
Great advice! Exactly what I needed at the right time!
Happy to be of service! Hope it helped! :)
Great advice. Thank you.
Thank you Michael. RESPECT ! (:
Thanks for the great info! Really helps.
HOT TIP - I put the youtube viewer speed on '2' (twice normal speed) and the animated quality of the presentation was entertaining, and it shortened the video from 21 minutes to just over 10 minutes.
The video author looks like the identical twin of a tenant I had and it was a bit 'unique' at first - my tenant had a deliberate, sort of 'plodding' communication style and I said 'no - I'm doubling the video speed - this is an RIA topic'
It worked.
Thanks for the advice Michael! What do you think of starting an RIA as a side hustle? I love my job and do well - but I also love helping people with personal finance and retirement investing. I've been thinking of studying for the Series 65 and begin small and adding a few clients slowly over time. I could definitely see it as a career after my current career closer to true retirement. Thoughts?
How do you find clients ?
Thank you
She wants to start an RIA with no assets?
Doesn’t it make more sense to start with a firm and then take your clients with you when you start your own firm? Rather than start a firm with no clients and survive off debt
It depends on the firm, but in general if you start with a firm that pays a salary to service the clients then they're the firm's clients (and you'll have a non-solicit that prohibits you from asking them to come with you if/when you leave), or you're starting with a firm where your clients are your clients and your compensation will be whatever you bring in minus a cut to them for their platform/firm infrastructure (which means you still have to get your own clients and revenue and "survive off debt" until you get to breakeven).
Does this cost assume no office space for the advisor? Seems quite low.
Correct, office space would be considered separately, as in practice a lot of advisors start without a separate/dedicated office space. In part because of the Zoom pandemic environment, but even prior, a lot of advisors either rent office space as needed from shared office spaces like Regus (which isn't much when you have few or no clients yet), or simply work from a home office space and meet clients at their home, their office, or a third-party 'neutral' location like a coffee shop. See www.kitces.com/blog/mailbag-home-office-vs-outside-office-space-and-credibility-as-a-startup-financial-planner/ for further thoughts on this.
just watched your video a couple weeks back... Question? As an RIA can charge my clients a monthly fee for my services?
@Troy Yes, absolutely. Almost 1,600 advisors doing precisely this at XY Planning Network, and thousands more in hybrid broker-dealers via AdvicePay.
@@MichaelKitces my other question is re:compliance. If I’m I have my own RIA individual entity (I.E LLC) & IAR. Can I be my own “compliance officer”? Or should I find a company that can help me like “RIA in a box”?
@@troyflowers8605 You can be your own Chief Compliance Officer, and if you run your own RIA you technically HAVE TO be your own CCO. Firms like RIA In A Box and XYPN Compliance provide coaching and consulting services to support you in the role, as well as tech like SmartRIA to facilitate the process as the CCO, but from a regulatory perspective if it's your RIA you have to be the CCO for oversight purposes. Then build the support tech and/or consulting/coaching around you that you need.
@@MichaelKitces your insight is so valuable! I appreciate this so much! Last few quick questions.. what are a few of the investment platforms I can use to service my client's funds? TD Ameritrade? Fidelity? And its the issue of custody? If I place trades on behalf of my clients I would need to their permission via a Power of Attorney or something to that effect?
@@troyflowers8605 RIAs managing client portfolios typically use third-party RIA custodians. The biggest today are Schwab (Advisor Services), Fidelity (Institutional), and Pershing (Advisor Solutions). Many of the large platforms do have minimum asset requirements to get onto the platform though (or at least a requirement to show a robust growth plan that you'll get to $10M - $20M+ in relatively short order). Startup-friendly options including going through an advisor network (e.g., XY Planning Network gives access to Schwab with no asset minimums), or using a smaller RIA custodian like SSG (Shareholders Service Group) Institutional.
Their platforms include all the requisite system and paperwork/agreements that it takes to be granted access to client access for trading (and also for billing if you decide to do an AUM fee).
The problem I see for minorities especially African-Americans is, black people should go out on their own and get started on their own without even joining an advisor reason why I say this, because blacks get the hate from both black and white, it is hard as the minority to get hired in The Firm somewhere specially in the area predominantly black predominately white it's hard for a black man to get a job in that field the best thing a black man can do is start his own firm from scratch even no experience, he or she will get the experience going forward, especially for minorities and I'm speaking mainly about African Americans oh, that's the best route because you are not going to get sponsored very now there may be some spots, that are more friendlier. But, what if a minority lives in the all-white area, or an all-black area, the only real way this can work for minorities in the diverse area to start your own firm, I'm telling this from experience
Wouldn't lack of customers cause them to go out of business? You've gotta be able to market yourself selling yourself is just as important as whatever alpha you can create. If you need need to borrow money to set this up you probably are not a very good trader/investor.
He does not project the type of professionalism that a customer would want advising them. It seems more of an image found at a car dealership.
agree
Richard Godwin Your a fake profile. Be proud small man...