Ask Brad: The Two-Step Approach to Transitioning to the RIA Model

Brad WalesThis is the latest installment of a regular column to answer questions from advisors who are considering transitioning to an RIA model. To see Brad’s previous articles, click here. To submit your question, please email Brad here.

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While expressed in different ways, the motivations brokers have for transitioning their practices to the independent RIA model are better economics or more flexibility with their practice.

Better economics entails variables such as more current-day income, less taxation of income, greater enterprise value, etc.

More flexibility includes the ability to offer a wider array of investment solutions for clients, use more or better technology to run a more efficient practice, expand the service offering for clients, implement new business development strategies, etc.