Road To Independence

As I approach my first anniversary of independence I think back and consider the ups and downs I’ve experienced. For those of you in a wirehouse, bank, insurance company or other “captive” situation who are considering the move to independence, I encourage you to read on. I’m sure this can’t be said for everyone, but at least for me, once I tasted independence, there was no turning back.
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One of the many advantages of operating your own wealth management business, especially if you’re an RIA, is the flexibility to determine your offerings. When comparing a broker/dealer arrangement with an RIA, both will likely offer investments and perhaps financial planning, but an RIA is probably more likely to offer additional services beyond that of a broker. One reason for this is that the broker is subject to their broker/dealer’s compliance and an RIA is responsible for their own compliance.

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Let’s start this week’s blog with a little test.

Q. A financial plan is to a client’s future as an Investment Policy Statement is to what?

A. An RIA’s fiduciary obligation

B. Prudent management of a portfolio

C. Cornerstone of the portfolio management process

D. All of the above

If you said A, you were right….

If your answer was B, well, you were also right…..

Actually, C is correct also and ….. that makes D the right answer!

Okay, I have to have fun sometime. This week I’m continuing to develop my IPS. I started this process several months ago but it stalled. In the interim I looked into some software programs for this but did not find one that seemed to fit me and my practice. Most of the choices I looked at were 85% canned language and 15% my input. I just don’t believe that’s what an IPS should be. This type of IPS seems to be more of a convenience than a critical piece of portfolio management.

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New computer…..…$1,200
Business cards………$50
Software…………$1,000
Seeing the look on a clients face whenever you’ve helped them…………..PRICELESS!

Yes, priceless. There’s nothing I’d rather do than provide quality advice and service to clients and get paid well in return. Leaving the world of the large corporation and starting my own advisory business is turning out to be one of the best decisions I’ve ever made.
This week I am completing another financial plan for a new client. This couple is on board with what I’m doing and they have an appreciation for what I bring to the table. Besides financial planning, I will also manage their investment portfolio. When a client buys into the planning process, it becomes a very gratifying experience for all involved.

I’m finding that running your own advisory business is both a challenge and a joy.

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