Wall St. Trading to RIA?

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Jul 26, 2011 7:54 pm

Hello all,

As an introduction, I am a current 2nd year analyst on a trading desk at a top US bank and I want to apologize ahead of time for my relative lack of knowledge.  I have been particularly enticed by the idea of starting my own financial planning/advisory and investment management firm for quite some time.  I've begun my education and have found this website to be a fountain of great information and I will continue my research.  However, there are a number of questions that currently stick out in my head:

1.  I wish to offer both investment advisory/management for a fee and insurance products (annuities/life insurance/disability insurance/long-term care insurance).  What is the best arrangement for this type of platform?

2. Beyond the series 66/7, what other licenses or certifications would you recommend? (I'm looking at CFA/CFP/ChFC/CLU in particular)

3. I have a fair amount of money saved up, but realistically how much should I expect to burn in the first year?

4.  Are there any particularly good books/resources that outline the process of starting a RIA/investment management firm?  (Ideally including legal requirements and important regulations to consider)

5.  How important is geography and how difficult is it to relocate after a few years?

6.  Are there restrictions to employing or formally partnering with estate planning attorneys/accountants/other professionals?

7.  Probably most importantly, what other questions should I be asking that I'm too naive to think consider?

Thanks a ton for any advice you all can offer!  I know this is the right move for me but trying to position myself for the transition is very difficult while still working 70+ hours a week!

Aug 4, 2011 5:44 pm

Hello, Khalil.  Making the transition from employee to business owner can definitely be an overwhelming task.  Especially when you are dealing with what I call, the Unknown Unknowns; what you don’t know, that you don’t know.

I offer consulting services and infrastructure support to investment professionals looking to start or expand their own Registered Investment Advisory- RIA firm.  I would love to set up a time so we can talk about how I can help you with going independent. After our call, I can provide you with a free proposal showing a business model comparison, and revenue and expense detail.