Is Starting An RIA Firm A Good Idea? 

The Registered Investment Advisor (RIA) firm is gaining popularity as the financial services industry is seeing a boom. Many financial advisors are seeking ways to transition from being independent broker-dealers to opening an RIA. Regulation requirements to starting an RIA are quite simple and can be understood easily with little guidance. 

Starting an RIA is a difficult decision. If you are confused about whether you should start an RIA Firm or not, here is what you need to know. 

Being one’s own boss is one of the best feelings you can ever have. No one wants to work for someone else just for the sake of a fixed income. Being a business owner means you have the freedom to do all the work in your way. You do not have to be answerable to someone else. 

1.You Can Finally Be Your Own Boss

When you are the owner of an RIA firm, you have the freedom to go after certain clients that you want for yourself. You can advise them with your best capabilities and earn profits accordingly. 

2.You Can Enjoy Fiduciary Responsibilities

When you are working at an RIA firm, you can have much more fiduciary responsibilities because now that you are the owner, you are in direct contact with the client. The entire purpose of your job is to provide advice to the clients that are in their best interest. 

If you are a financial advisor at a private firm, you are often restricted by the policies of the firm. You do not have free will and you can not entirely share the best advice by seeing the client’s interest only. 

3.You Can Choose A Competent Staff

Choosing a team for yourself can be very liberating. When you start an RIA firm, you can easily choose the best people that you want for your team. You can not have this freedom while working at a private firm. 

Choosing your team by yourself is important because you can select the most competent staff for your firm. This can have several benefits for the success of your business. You can select the tech-savvy staff for your firm to ease yourself from the technicalities of running an RIA firm. 

4.You Can Enjoy The Flexibility

If you manage to start an RIA firm, you can have the flexibility and the freedom to make your own decisions. You can choose the way you want to treat your clients without any restrictions. An RIA firm is registered with the Security and Exchange Commission (SEC) and it can make independent decisions. 

Apart from following the basic business rules, you are not bound by any restrictions or limitations. This freedom can never be achieved in a private firm. 

5.You Can Grow Professionally 

Professional growth is crucial if you want to stay relevant in the market. Starting an RIA firm can provide you with an opportunity to grow professionally as well as personally. 

Your personal growth is important if you want to make a name in the market for yourself. Being stuck in a private firm and working under someone else’s name can never provide you the opportunity to grow personally. 

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