Jesse James was asked, “Why do you rob banks?” His response was, “That is where the money is.” While I am not suggesting that anyone rob a bank, I am suggesting that life, health and annuity independent market organizations have agents with investable assets that are easily accessible if the agents positions themselves correctly.
Previously, investment advisors had to be affiliated with a large money management firm with an active role in investment decisions and allocations. Then broker dealers (BDs) became popular with mutual funds and limited money management opportunities.
However, the BD platform has many challenges that make it difficult for advisors to justify. Some of the challenges include the fees the BD charges, plus compliance, oversight and stipulations of products that can or cannot be sold through the BD.
The good news is that when challenges are present opportunities appear to eliminate those challenges and create more opportunities. In recent years we have seen the Registered Investment Advisory (RIA) platform attract attention because it totally eliminates the challenges indicated above.
More importantly, the right RIA platform allows agents the opportunity to capture all of a client’s investable assets. Yes, you have to have the proper education (licensing) and training to be positioned as an investment advisor — and I will address that.
So, why should life, health and annuity IMOs explore the RIA platform? They should do so to:
Attract and retain agents