The Great Misconceptions About RIA Independence

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Why might an advisor leave a large firm and branch out on their own? There are many benefits of going independent, from more freedom and control to increased compensation. But several misconceptions about going independent leave advisors fearful about making their next career move.

One of the biggest misconceptions is that you'll have to do everything by yourself. Of course, starting any new business requires the owner to be skillful at many disciplines. But joining an RIA with a robust platform is an ideal way to ensure that you have the support you need. Think about it as the best of both worlds; you retain your autonomous brand, yet you have the support and resources of a larger organization, allowing for a balance of workload and efficiencies.

Here are some of the most common challenges faced by new RIAs, as well as explanations of how those platforms can serve as the solution:

1. Time

When you're trying to juggle numerous responsibilities, there isn't enough time to get everything done. One of the main pros to choosing an RIA platform is the option to outsource key functions that you don’t have the resources to cover. Passing off certain responsibilities means you will have more time to spend focusing on how to better serve your clients.

2. Compliance

Compliance is another roadblock that advisors must face if they choose to break away from a firm and start their own RIA. The compliance process takes significant time, effort and money that many advisors don't have. A major perk of choosing an RIA platform is compliance coverage, including oversight for registration, marketing, compliance documents, and more.