Owning It- A Day in the Life of a Registered Investment Advisor

In the classic 1996 film Jerry Maguire, written and directed by Cameron Crowe, we watch Jerry become disenchanted with the giant machine of a sports agency that employs him. He writes a “mission statement,” imploring the firm to change its model, focusing more on each client and less on profits.   

Of course, these revolutionary ideals are not embraced by his firm. Instead, they rapidly strip him of his clients and show him to the door. He is left with only one client, who ends up teaching Jerry the value of individualized care, and they both end up better off in the end.  

From “show me the money” to “you complete me,” the movie's iconic messages have stuck around for over 25 years. So, let’s look at the parallels.  

The situation is similar to disenchanted financial advisors, who long to show their clients a deeper level of care. They want to focus on becoming a true fiduciary, doing what is best for their client instead of what’s best for their firm. As a result, these advisors may break away to build an independent practice and become a Registered Investment Advisor or RIA.   

Why You Became a Registered Investment Advisor  

 Let’s say you traded in your Series7 FINRA License to gain independence and control of your brand. Chances are that you want to own it and:  

• Provide a more personalized client experience  
• Avoid B/D management with which you don’t see eye to eye  
• Be your own boss and improve your work-life balance  
• Deliver meaningful service by taking back control of what you can offer your clients  
• Create unique portfolios customized for each client, offering tailored asset classes and investment strategies  

Because you are now a true fiduciary, you can offer more meaningful service and investment advice. You have the flexibility to serve your clients on a personal level - especially during times of crisis. You no longer need to sell recommended products that won’t meet your client’s needs. You will also be responsible for running a new business all on your own.  

Learn more about how Vineyard Global Advisors is prepared for crisis. 

"Show Me the Money"  

Building a business is expensive, and the costs of continuing to grow that business can be overwhelming. Getting started will require you to:  

• Write a professional business plan  
• Form an LLC or S Corp  
• Find a niche and test it  
• Build a website with SEO  
• Build a tech stack plus CRM, client portal, and performance reporting software  
• Find a compliance consultant  
• File your RIA reg and IAR fees  
• Get E&O Insurance and surety bond  
• Build an owner's draw account  
• Plan for legal expenses  
• Become a thought leader and marketing strategist  

Once you have the business established, you will also need to:  

• Attract and retain new clients  
• Build your brand  
• Manage compliance administration  
• Control billing and reporting  
• Delegate tech support, administrative work, HR, accounting, scheduling calendars, network maintenance, and operations  
• Manage portfolio management services  
• Build a performance reporting system  
• Establish a process for business development  

The list continues, but the fact is that building an independent RIA practice is no small task. The dream of becoming a client-centric, creative provider of unique financial offerings will cost you more than just money. It can drive you in the opposite direction of the Jerry Maguire model. So, will you need to become what you just left behind? 

Vineyard Global Advisors offers a range of investment strategies designed to allow participation in the market's growth within a dynamic, risk-managed framework that seeks to protect against significant market declines. Our goal is to give our clients greater peace of mind by generating steadier returns over time. Contact us to learn more.