In my mid 20's and starting a RIA Firm

or Register to post new content in the forum

12 RepliesJump to last post

 

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Aug 26, 2011 3:10 pm

Dear All: 

I have been following this forum for many years and find it extremely useful (only complaint is topics get off subject very quickly lol).I am in my mid 20's and last night made a decision that could very well change the course for the rest of my life; I have decided to start my own RIA.I plan on beginning to study for the 65 Monday (as well at the same time will be studying for my Real Estate license, just to have it handy).  I am Series 7 licensed so I have covered the majority of the topics found on the 65 and think I'll be ready for 65 in a month.In summer of 2007 I did an internship at Citicorp Investment Services and in 2010 worked at an independent as a Financial Advisor Sales Associate and later joined a team of fixed income emerging markets traitors, which I enjoyed very much.In October of 2010 I left the independent to start my own business (has nothing to do with this industry), but I really just wanted to own my own business.  Nevertheless, as life would have it, I am back.  I plan on starting the RIA on my own with no real sales experience and obviously no AUM.  Nevertheless, I have the support of a close family member of mine who’s been in the business for over 30 years.I plan on having my own office to run the RIA.Taking 65, writing business plan, and setting up RIA= have business up and running in roughly 2.5 months (approximate start date Nov. 15).I will be reporting to keep you all updated on my progress.I wish you all the very best.Yours Truly,

SwingBata

 

Aug 30, 2011 2:03 am

Do you have your 66? If so why take the 65?  also you mentioned you have no sales experience, is family friend helping you with this?  Do you realy know what your getting into ?

Aug 31, 2011 2:57 pm

Dear SwingBata,

First of all, best wishes to you!  Having worked with many 'Emerging RIAs' -- I can't promise you that this business, like any business is a cake-walk.  It is going to require a lot of attention but I can tell you I've personally witnessed individuals like yourself who started off from scratch and they made it -- I see no reason why you couldn't have the same success!

I'm attaching a reading list for you also.  From the get-go, I would recommend hiring an RIA compliance consulting firm.

Sep 1, 2011 5:38 pm

Day 4 of straight studying! one of those days where you need some motivation!

M U S T K E E P G O I N G !

best to all,

swingbata

Sep 7, 2011 9:32 am

swingbata, best of luck to you of course, but before you make this leap, have you considered that you need $25 million in AUM before you can register as a RIA?  Based on your age and experience, it didn't appear as if you had an existing book of business.  Apologies if I misunderstood... I guess my point was that you might need to associate with an indy b/d and build a book before making the RIA move.

Sep 7, 2011 4:10 pm

Good luck.

Hey it is OK to have BIG plans, but be realistic.

Why in the world would anyone give you their money?  Just me talking but I would NEVER give my money to someone brand new in the business, sooooo young and inexperienced.  There are so many people out there I have no idea how you could successfully compete.

Oh, do you know how to make a small fortune in this business????   Start out with a big fortune.  Watch your dollars and be smart.

Sep 8, 2011 8:45 am

I know I am young have little
experience and no aum, nevertheless, my mind has been made up.  

I am well spoken, confident, intelligent; dont want to
get into a whole discussion about this but long story short if you have these
qualities I am speaking of in my opinion I believe you can convince anyone to
invest with you no matter their age; very professional, have a conservative
investing approach, honest, and you really want to make money for your
clients,,,,, like I said I believe you can convince anyone to invest with you.

10MM AUM @1% $100k p/y… (in 2 years);;;; ‘I believe in my
opinion’, in my case, is very attainable.

Best!!!

P.S. worst case scenario if I
after I pass the 65 if I feel its necessary to get a little more experience I
will work at an insurance company for 6 months selling mutual funds.

Sep 8, 2011 9:55 am

Still not answering the questions. Why the 65 do you have the 66 ? Do you have enough AUM for RIA ?  Wish you the best of luck, but you already sound like your not understanding what your getting into.

Sep 8, 2011 1:03 pm

Just as a point of clarification, you can establish an RIA with $0 AUM.  There is no requirement that you have $25m from the get-go.  The advisory business, like any other business is not for the faint of heart.  I've seen individuals much older fail and I've seen younger professionals do extraordinarily well. 

Owning any small business has its "ups and downs" but I wouldn't say age alone is the sole determining factor whether someone can make it in this business or not.

Sep 9, 2011 2:37 pm

[quote=Nova02]

swingbata, best of luck to you of course, but before you make this leap, have you considered that you need $25 million in AUM before you can register as a RIA?  Based on your age and experience, it didn't appear as if you had an existing book of business.  Apologies if I misunderstood... I guess my point was that you might need to associate with an indy b/d and build a book before making the RIA move.

[/quote]

You shouldn't post about things you have no idea about. $25mm is the old benchmark for being SEC registered. You can register with your state with ZERO AUM. In fact, every new RIA firms starts with ZERO AUM on their ADV because they don't exist. And as a state-registered RIA, you never need to have a dime of AUM to continue operating. AUM is NOT a requirement to establish an RIA. What do you think fee-only financial planners (that don't manage assets) do?

Sep 10, 2011 3:05 am

thank you B52 i mean B54.

P.S ADMINISTRATOR of this website fix the several glitches for ex i cannot respond to a post with my Iphone.

Sep 10, 2011 5:43 am

meant to say ^ *thank you B52 I mean B24