It seems that going independent has gained some steam in 2014, as the number of RIA firms grew 2.4% over 2013. The total number of RIAs in the 50 states plus Puerto Rico and U.S. territories was 31,975, according SIFMA’s 2014 Factbook.
And that increase is also factoring in a decrease in RIA numbers because of mergers, says RIA in a Box, a company that helps advisors create their own RIA firms.
Compared to the rest of the advisor industry RIAs are also gaining momentum. TDAI President Tom Nally told ThinkAdvisor that according to Cerruli Associates’ data the RIA channel was the “only one to have added head count” and that by 2018 the independent advisor channel will have more advisors than the wirehouses.
Nally also cited a McKinsey & Co. study that projected that independent advisors, including RIAs, would capture 28% of net new asset flows across all retail advice channels from 2014 to 2018, compared with only 2% for the wirehouses.
(Check out: Top 10 Wealth Zones With Fewest Advisors)
The states listed here had the most RIAs, but RIA in a Box found that the five states with the most RIAs per capita were Connecticut, which has one advisor per 3,750 residents; followed by Massachusetts; Colorado; New York; and New Hampshire, which has one per 6,550.
15. Maryland: 642
14. Virginia: 689
13. Washington: 696
12. Georgia: 715