Starting an RIA with no AUM
I’ve seen this topic posted a few times over the past couple of years and thought it might be worthwhile to rehash it. Has anyone here, starting at zero, started an RIA on their own? I’m looking at the viability of taking my credentials (CFA, CFP, CMT) and practical experience on the ops, investment, and sales side and hanging up my own shingle. Seems salaried life is a bit. . limiting. I already know most of the back office software to streamline and automate various processes. I know very little about compliance and legal stuff, including starting up. I need help with that.
Anyway, I know it takes insane tenacity, but I want to ping the board to see what challenges I’m missing.
Business: Financial planning (hourly fees) plus investment management (aum fee)
Target market: Millenials and Gen X
Startup and op costs: Looks like about 20k and then 20k per year
Financial buffer (since I’m taking my salary from six figure to zero): 3 years of living/operational expenses
Contacts in area: Few, will need to rely on family and friends initially to help offset negative cash flow
Time split target: 15% investments/ 10% admin/ 15% planning/ 60% business development.
3 year goal (15M AUM)
Obviously things need to be more detailed and thought out, but what challenges am I missing? Are there other resources to help create a lean, efficient practice besides RIAinabox and TD/Schwab? Is prospecting still cold calls, warm calls, getting involved in groups and clubs, networking, and knocking on doors?
I appreciate all feedback, including “you’re a moron”
Study together. Pass together.
Join the world's largest online community of CFA, CAIA and FRM candidates.