Wall St. Trading to RIA?
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!
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.