This week on the Road I saw more progress. My RIA is now approved by the state and I can accept financial planning fees. I have two financial planning clients to begin with. One is an executive with a large corporation and the other is a young professional with a very successful practice in the medical field.
I am still looking for a place to hold the assets. I have been leaning toward the RIA platform ?EUR” which seems to be a trend ?EUR” but am unsure at this point. While an RIA offers more control and a higher payout (100% versus 90% +/-), it will require more work and cost to set up. Is the extra cost worth the additional 10% payout? If the production is large enough…certainly!
I think of it this way: It’s as if the RIA arrangement provides a storefront and it’s up to me to determine what to put on the shelves. For instance, if I want to offer insurance products, should I secure a general agent contract with each company I want to do business with or find a “one-stop shop” and run all insurance business through them? I think the latter would be more efficient but would love to hear your comments.
Let’s get back to the asset management decision.