Break Away From The Pack

Ways to proactively prepare for an RIA breakaway

On Behalf of | Aug 10, 2021 | RIA Formation |

Now is the time to start working on a stronger relationship with your current employer, clients, co-workers as well as investigating requirements and options. This season of due diligence will pay dividends down the road when it comes time to make the leap to your own RIA.

This is the single largest career decision that many financial advisors make. This can be a stressful time filled with more questions than answers. Decisions of this magnitude are not usually improved by haste. Take your time, strengthen your network and reputation as well as researching answers about the breakaway process and entity formation and organization.

How to set the ball in motion while still employed

As the saying goes, “Rome wasn’t built in a day.” Being proactive about planning an exodus from an RIA or wirehouse can help to pave the way to success by eliminating and removing obstacles. Here are 5 strategies to consider:

  1. Update your LinkedIn and social media presence: Making sure that social media and professional profiles are up to date with appropriate information like professional pictures and descriptions. This will help you in the long run when it comes time to market yourself as an RIA.
  2. Take advantage of your company’s resources: Do they offer any training? Do they pay for conferences and professional development? If so, make sure you take advantage of everything that’s available to you. Don’t be afraid to ask questions or go outside of the normal channels if that’s what it takes.
  3. Keep up to date: Become current with new in terms of investing and financial planning strategies. This will help you get ahead when the time comes to strike out on your own.
  4. Create relationships: It’s impossible to be successful without having good relationships with the people around you. Find someone who can help guide you through your career as a mentor. Develop relationships with your co-workers and current clients because they can be a great resource for referrals when you are independent. It can be helpful to not burn bridges in the process of a breakaway.
  5. Research and investigation: There are so many aspects to learn more about: contract review, corporate formation, initial compliance, client agreements, transition assistance, intellectual property and more. 

It is easy to feel overwhelmed, however, having guidance can be one of the biggest assets one could have during the breakaway process