Want to go RIA? Here’s where to start

investmentnews.com:

Now more than ever, financial advisors are considering their independent freedom. That is, getting the freedom to run their practice how they want to. But doing so requires a lot of tools – and time.

Several advisors who have gone independent weigh in on their journey and how they became a registered investment advisor, including the tools advisors should be prioritizing when they start out.

Andrew Evans, founder and CEO of Rossby Financial, says first and foremost, advisors should figure out what their business model and total structure of the firm is.

“Are you enterprise, meaning that you’re going to build out for many team members? Or are you solo? That really then runs your path very differently,” he says. “

That path then revolves around deciding what kind of advisor you want to be, Evans added. “Will you be a portfolio manager? Are you somebody who outsources management or are you just planning?”

Advisors then will have to consider whether they have enough income to register with the SEC or be state registered and whether they want to do things themselves or bring in a consultant firm, Evans noted.

“Once you know what your regulatory situation is, then your tech stack starts to fall into place,” he says.

Tech stacks are likely the most important tool for the advisor and with it, a lot of managers to choose from.

Evans highlighted when it comes to the CRM and tech stack options, advisors should ask themselves whether they need a full robust program, like Black Diamond or “do I want to keep it all in-house or have a one-stop-shop like Orion, where they’re gonna give me a CRM performance reporting, portfolio rebalancing, and all that, or am I trying to keep my costs down?”

Tom Balcom, founder of 1650 Wealth