I'm Brad Wales with Transition To RIA (TransitionToRIA.com). This is episode #97 of my question and answer series where I answer RIA related questions I get from advisors just like you.

There are a lot of things in life in which getting to a “no” is easier than getting to a “yes.”

Deciding which RIA to join is one of them.

With several strong value propositions in the marketplace to choose from, determining which one to say yes to takes time.

The easiest way to begin the process is to narrow the field by knowing which solutions you should quickly say “no” to.

In this episode of the Transition To RIA question & answer series I explain which type of RIAs you should exclude from your consideration.

What I do: At Transition To RIA I help financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model.

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🔹 Website: https://TransitionToRIA.com/
🔹 Show notes: https://TransitionToRIA.com/what-type...
🔹 Contact me: https://transitiontoria.com/contact/
🔹 List of all questions I've answered: https://transitiontoria.com/videos/
🔹 Podcast: https://transitiontoria.com/podcast/
🔹 Whitepaper ("11 Ways The Economics Of The RIA Model Are Superior To Other Advisor Affiliation Options"): https://transitiontoria.com/whitepapers/

🔹 Transcription of video:

What type of RIAs should you not join? That is today's question on the Transition To RIA question and answer series. It is episode #97.

Hi, I'm Brad Wales with Transition To RIA where I hope you understand everything there is to know about why and how to transition to the RIA model.

If you're not already there, head to TransitionToRIA.com, where’ll you’ll find all the resources I make available from this entire series in video format, podcast format. I have articles, I have whitepapers, information on how to contact me. All types of resources to help you better understand the RIA model.

Again, TransitionToRIA.com.

On today's episode, it is going to be almost the inverse of several episodes I've made. I've previously talked about why you might want to join an existing RIA versus starting your own. About how to evaluate RIAs to potentially join. I've talked about what the payout is typically with RIAs that you might join.

This episode is almost the inverse. It's saying, "All that information was helpful, but what are specific types of RIAs you would not want to join?"
I want to go through a couple examples of the types and profiles of firms that I would heavily caution you to pause on before you might consider joining them and transitioning your practice to that solution.

These are in no particular order. This is not an exhaustive list, but I think these will be some helpful items.

First, and this is something that will not be of an issue to some of you, but will be something to be cautious about for others in part because this is one of the big misconceptions that I often hear from advisors. Unless you fit the profile of where this doesn’t apply, which I'll give an example, you should heavily consider not joining an RIA firm that you have to sell your practice to as part of the joining process.

Now, to be clear, there are plenty of advisors where it makes sense to be selling your practice. Perhaps you're towards the end of your career, and that is your succession plan. Or maybe you have found a solution that even if you're more on the younger side, but a firm’s value proposition is so strong, so impressive, and they can help you grow, that you're willing to take the chips off the table earlier in your career and make that move for the balance of the time under their RIA.

But I've had plenty of conversations where advisors – often at a wirehouse or broker-dealer type environment - that aren't familiar with the RIA space who assume you must sell your practice if you’re going to join an RIA.
The point I'm trying to make is while that exists, there are some wonderful value propositions, wonderful solutions, that do not require that you sell your practice.

If you are in that situation that you're not at the end of your career where you're needing that long-term succession solution, or you're not feeling you need a dance partner that will help you grow faster than you feel you could on your own, know that there are solutions that don't require selling your practice.

I'm mostly referring to firms where you sell 100% of your practice, but there are some that require that you sell a minority position. That's a whole different complication. Maybe I'll do a separate episode on that and the pros and cons of that. Con't....

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