If I became an RIA....

[dao cowboy]

So becoming an RIA and working on the Interactive Brokers site is sort of plan A right now. It's not a sure bet because....well, I'm a felon. My understanding is that it's still possible, but you have to wait 10 years after your felony conviction, which means it would be next winter. I have a felony for violence, not for fraud, drug dealing, etc.

But anyway, I want to offer investment advice to millenials like myself for the long term (I don't believe there will be such a thing as "retirement" then). But how do I get clients? I realize it's mostly a sales job, and I'm selling my model of reality. I can talk a pretty good game, but I'm not sure about marketing myself. I mean, who reads blogs? What do I do, youtube rants? This all seems questionable.

Any responses appreciated.

 

[drm7]

Yes, it's about sales and networking, but building an online presence will help in the long term. I strongly suggest you go to Michael Kitces' website (kitces.com) and read every single thing he has written about "practice management." He knows what he is talking about. The TL;DR version is "find a niche and focus all of your energy on marketing to that niche." You need to show what makes you different from the other 25 RIAs in your ZIP code.

(I have no business relationship or any affiliation with Michael Kitces, and all the stuff on his site is free anyway).

EDIT: He is affiliated with the XY Planning Network, which may be a place to plug yourself into once you are up and running, based on your preference for younger clients.

 

[dealmaker]

So becoming an RIA and working on the Interactive Brokers site is sort of plan A right now. It's not a sure bet because....well, I'm a felon. My understanding is that it's still possible, but you have to wait 10 years after your felony conviction, which means it would be next winter. I have a felony for violence, not for fraud, drug dealing, etc.

But anyway, I want to offer investment advice to millenials like myself for the long term (I don't believe there will be such a thing as "retirement" then). But how do I get clients? I realize it's mostly a sales job, and I'm selling my model of reality. I can talk a pretty good game, but I'm not sure about marketing myself. I mean, who reads blogs? What do I do, youtube rants? This all seems questionable.

Any responses appreciated.

check out FundSeeder and other such sites....

 

[trademan1]

So becoming an RIA and working on the Interactive Brokers site is sort of plan A right now. It's not a sure bet because....well, I'm a felon. My understanding is that it's still possible, but you have to wait 10 years after your felony conviction, which means it would be next winter. I have a felony for violence, not for fraud, drug dealing, etc.

But anyway, I want to offer investment advice to millenials like myself for the long term (I don't believe there will be such a thing as "retirement" then). But how do I get clients? I realize it's mostly a sales job, and I'm selling my model of reality. I can talk a pretty good game, but I'm not sure about marketing myself. I mean, who reads blogs? What do I do, youtube rants? This all seems questionable.

Any responses appreciated.

The job sucks, unless you like dealing with people, complaints (no matter what), being a salesman. I suggest otherwise. I can tell you that it is more difficult now than ever to be an RIA. I'm not saying it isn't possible, I'm doing it, but I would advise my son to do something else.

Millenials either want to manage their own money, or they will do roboadvisors. Of course there are exceptions.

The future of the business is robo advisors and high net worth clients/advisors.

Again, I'm not saying you can't make a living, but I'm suggesting the tide is more against you now than ever in this business. It's not the old days where you can cold call a lawyer or doctor and get them to invest money with you without having even met you in real life.

Everyone has a family member, or friend in the business. You don't want this stress.

Anyways, not hoping to kill your dream, just want to be realistic so you aren't blindsided.

 

[R1234]

The job sucks, unless you like dealing with people, complaints (no matter what), being a salesman. I suggest otherwise. I can tell you that it is more difficult now than ever to be an RIA. I'm not saying it isn't possible, I'm doing it, but I would advise my son to do something else.

Millenials either want to manage their own money, or they will do roboadvisors. Of course there are exceptions.

The future of the business is robo advisors and high net worth clients/advisors.

Again, I'm not saying you can't make a living, but I'm suggesting the tide is more against you now than ever in this business. It's not the old days where you can cold call a lawyer or doctor and get them to invest money with you without having even met you in real life.

Everyone has a family member, or friend in the business. You don't want this stress.

Anyways, not hoping to kill your dream, just want to be realistic so you aren't blindsided.

This is spot on. I am an RIA and am seeing some unfavorable trends over the recent 5 years. It is increasingly difficult to market your services where cold calling has become a thing of the past.

Millennials do not even understand the paradigm of hiring a money manager - they are all about 'what can I get for free' or almost free, which is what the robo-advisors offer with their ultra low management fees and ultra cheap ETFs.

The only clientele that will always be available are high net worth types who understand the need for long term, actively managed growth of their money and who don't mind paying a fee for it. These types also realize the hype behind Robos and how those passive beta models cannot continue to print riskless profits forever.

To survive in this business it is increasingly about networking and somehow finding these savvy high net worth investors. It goes without saying your models need to be levels better than the Asset Allocation crap sold by the Robos. High net worth investors require long term reasonable rates of return with low volatility and drawdown.

 

[newwurldmn]

This is spot on. I am an RIA and am seeing some unfavorable trends over the recent 5 years. It is increasingly difficult to market your services where cold calling has become a thing of the past.

Millennials do not even understand the paradigm of hiring a money manager - they are all about 'what can I get for free' or almost free, which is what the robo-advisors offer with their ultra low management fees and ultra cheap ETFs.

The only clientele that will always be available are high net worth types who understand the need for long term, actively managed growth of their money and who don't mind paying a fee for it. These types also realize the hype behind Robos and how those passive beta models cannot continue to print riskless profits forever.

To survive in this business it is increasingly about networking and somehow finding these savvy high net worth investors. It goes without saying your models need to be levels better than the Asset Allocation crap sold by the Robos. High net worth investors require long term reasonable rates of return with low volatility and drawdown.

And you are competing against large firms with safe reputations, market access, and marketing.

 

[R1234]

And you are competing against large firms with safe reputations, market access, and marketing.

yes. I'm operating as an independent RIA

 

[newwurldmn]

yes. I'm operating as an independent RIA

No offense to you but I would never work with an independent RIA or wealth manager unless they came highly recommended from someone I highly respect who has similar financial goals as me.

 

[trademan1]

No offense to you but I would never work with an independent RIA or wealth manager unless they came highly recommended from someone I highly respect who has similar financial goals as me.

What you say is true. That is the mindset of many people about working with a Independent RIAs.

You are also correct on large firms having the advantage of reputations and marketing.

I would beg to differ on one point you make from above, Market access. Independent RIAs have the same market access through their custodians. These custodians don't want to lose RIA's as they provide a lot of revenue.

Ironically, in many cases but certainly not all cases (you can get a shitty RIA at a big firm or a independent RIA firm), if you go with a RIA at a large firm the best interest of the client is not always there because of the pressure from the large firms on the RIAs to put their clients money into their own firms investment vehicles to earn additional revenue for the firm.

Bottom line, there are downsides to everything. Such is life.

 

[dao cowboy]

Thanks for the responses.

I think my model of the future is unconventional enough that I might have a shot. I don't want big bucks, I just want to make a little cash with the knowledge I've picked up. Food for thought, though.