What to Consider When Moving to an RIA

A guide to why an advisor may consider a move, what to evaluate, and how to ensure a successful transition.

Considering a Move to Independence?

Whether you are currently with a wirehouse, a broker-dealer, or already with a registered investment adviser (RIA), there are several factors to consider before transitioning to independence or affiliating with a new RIA.

There are many benefits to joining an RIA, but careful due diligence is essential to understanding all aspects of the change before making the move. Define your goals and objectives clearly, ensuring you’ve thoroughly evaluated your reasons for transitioning. Whether your motivation is gaining access to a broader range of investment options, increasing revenue potential, or lowering fees, taking the leap to independence can be highly rewarding.

If any of the following reasons resonate with you, it may be worth having a conversation with an RIA:

1. You want greater flexibility in investment options, fees, and services for your clients.

2. You prioritize transparency in fiduciary responsibilities and want to align with your clients’ values and principles.

3. You prefer to build your own brand and reputation rather than being associated with a larger institution.

4. You seek to retain a higher percentage of the income you generate.

At Golden State, we believe advisors should have the autonomy to build independent, valuable, and enduring practices. Our goal is to provide a flexible affiliation framework for advisors seeking a fee-only or hybrid independent RIA model with a broker-dealer relationship, access to a turnkey asset management program, and extensive business support.

I’ve Decided to Become an Independent Advisor—Now What?

Once you’ve decided that joining an RIA is the right move, it’s important to conduct thorough research to find the best fit. Not all RIAs are created equal, and aligning with the right firm requires careful evaluation. Consider speaking with at least three RIAs to compare their offerings and support structures.

When evaluating an RIA, ask these key questions:

1. What is the company’s culture—are they a large or boutique organization?

2. What is the firm’s history and longevity in the industry?

3. Do they have a strong compliance record?

4. What custodial relationships does the firm maintain?

5. What fees will I encounter?

6. What technology solutions are available?

7. Does the firm offer a turnkey asset management program?

8. Will I receive marketing support?

9. Is there an M&A program to help grow my practice?

10. What transition support is available?

Beyond these fundamental considerations, remember that an RIA that is committed to growth will also be invested in helping you grow.

How to Make Your RIA Transition Most Effective

Once you have chosen an RIA, it’s important to stay proactive and ensure a seamless transition. Transitioning to a new RIA involves several moving parts, and careful planning is key to success. Golden State believes the following steps will help ensure a smooth process:

1. Collaborate with Your RIA: Work closely with your new firm to facilitate the transfer of client assets and accounts. This includes coordinating with custodians, handling fund transfers, and updating account information. Golden State provides a step-by-step process and a dedicated transition team to guide advisors through the entire process.

2. Build Your Brand and Leverage Technology: Whether you’re starting fresh or enhancing an existing independent practice, Golden State’s marketing and technology teams work directly with advisors to set you on the right path. Our marketing support includes brand development, PR strategies, and ongoing visibility efforts. Our tech consultants help source and implement the necessary hardware and software that aligns with your business needs.

3. Communicate with Clients: It’s critical to engage with legal counsel experienced in securities regulations and your specific jurisdiction to navigate contractual obligations, resignation protocols, and client communication guidelines. Golden State offers tools and resources to help advisors develop a transparent and timely communication plan to ensure a smooth client transition.

4. Transfer Assets Efficiently: As your clients learn about your move, coordinating with your new RIA is crucial to ensure the seamless transfer of assets and accounts. This process may include working with custodians, updating client information, and managing fund transfers.

5. Monitor Progress and Ongoing Support: At Golden State, your transition team doesn’t just support you through the initial move—they remain by your side to help you establish and grow your practice long-term. Ongoing business development and operational support are key elements of our commitment to advisor success.

Golden State welcomes experienced advisors seeking greater autonomy in building enduring practices. Operating under your own DBA or firm name, you’ll have access to extensive support mechanisms, including M&A opportunities and a turnkey asset management program.

If you’re considering a transition or simply want to explore your options, we invite you to contact us to see how a move could benefit your business and your clients.