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Inside the RIA Ecosystem: Advisor Growth Strategies

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A121389
Submitted by lina.zuluaga on Mon, 11/12/2018 - 16:00

Inside the RIA ecosystem.

Advisor Growth Strategies LLC

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John Furey, Principal & Founder, Advisor Growth Strategies

We help advisors in transition with a variety of things, helping them with entity formation, and how to set up your legal team, we help with transition project management, and we also help them essentially build-out their organizational structure and set up their office, so everything you need to start up a new company.

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RIAs have options.

One of the greatest things about being independent now for advisors that are in the independent channel is the ecosystem that surrounds them. And why is it better?  Well, the first reason why it’s better is options, there’s optionality in independence.

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RIAs have a track record of retention.

The largest concern is, ‘Will my clients come with me?  If I go independent and make the move, will they actually transition with me?’ And, really, what you need to do for that concern is take stock in ‘When I think about my clients and when they think of me, do they see their relationship with me or are they close with me, or perhaps are they more interested in working with the institution?’  But if you’ve done a great job as a financial advisors, and large teams almost always have, because that’s the reason they’re so large, you should feel really, really confident that your clients will go with you.  And you could ask folks around the industry, and Schwab has done research on this, that retention rates for large teams usually come in at about 95% of their revenue, so it’s a staggering retention rate. So it shouldn’t be too much concern around that one.

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The risk may be greater if you stay.

You know, when you look at going independent, what is the alternative?  The alternative could be staying within a large institution. And is there risk there or is there reward there? So I think, from my perspective, the benefit of going independent, perhaps… and there’s risk in doing so, is a better environment versus staying, because in large institutions now they’re evolving and they’re changing, and really where those firms are going is more into a structure where it’s, perhaps, a bit more top-down from an advisor perspective, because we hear that, and it’s also a thought of perhaps the way I want to work with my clients in the future, I may or may not be able to because of either a compliance construct or a management construct. So I think advisors, especially the larger teams, are now taking a look at that and saying, ‘Wow!  You know, sure it may be some risk to go independent, but perhaps the risk is greater in staying.

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Information as of November 16, 2017.

Information included during this video is intended to be an overview and is subject to change. 

Experiences expressed by advisors may not be representative of the experience of other advisors and are not a guarantee of future success.

Schwab does not supervise third-party firms and takes no responsibility to monitor the services they provide to you. Experiences expressed are no guarantee of future performance or success and may not be representative of your experience.

Schwab does not provide legal, regulatory or compliance advice. Consult professionals in these fields to address your specific circumstance.

Schwab Advisor ServicesTM serves independent investment advisors and includes the custody, trading, and support services of Schwab.

Independent investment advisors are not owned by, affiliated with, or supervised by Schwab.
©2018 Charles Schwab & Co., Inc. (“Schwab”). All rights reserved. Member SIPC. (0718-8HNR)

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