Form an RIA

SEC Chairman: Examining Smaller Advisors Important

From Financial Advisor Magazine

Added on April 2014 in Form an RIA

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Summary: Securities and Exchange Commission Chairman Mary Jo White said Tuesday she is telling her staff that examining small investment advisors is important.The SEC’s use of computer modeling to determine which advisors to examine might not bring up large numbers of smaller advisors because they are not as risky as larger operations.

LLC or C Corp? The Tax Implications for Advisors

From Think Advisor

Added on March 2014 in Form an RIA

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Summary:In early 2012 I posted a blog on a change I had made in my business structure. Specifically, I closed the LLC and changed to a C Corp. That blog garnered a lot of good comments, as many advisors were interested in reducing their own tax burden. That year, 2012, was the first in which I filed as a C Corp and 2013 will be the second. Now that I have had some time under the new structure, I thought I'd reveal the results.

How Old Is Too Old to Leave Merrill or Morgan Stanley?

From Financial Advisor IQ

Added on March 2014 in Form an RIA

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Summary: Bob Fragasso was 50 years old in 1996, when he walked away from a six-figure deferred-compensation plan at Smith Barney and founded an independent firm. But could he muster the energy to break away today, at age 68? “Absolutely,” says Fragasso. Though experts agree age isn’t the main thing keeping older wirehouse advisors from going independent, industry estimates suggest that the prime age range for breakaways is between 40 and 50.

Are You Worth More Than 1%?

From wealthmanagement.com

Added on March 2014 in Form an RIA

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Summary:

RIAs are loathe to increase their fees, believing it alienates clients. But a recent analysis by Russell Investments shows advisors are worth as high as 4.33 percent, much higher than the typical 1 percent that many FAs charge for their services. In a blog post on Russell’s website, Brad Jung writes that the value of an advisor is more than 1 percent. Jung suggests advisors use the following formula to determine how much they should be charging:

A + B + C + P > Your fee

Wirehouses, RIAs benefit from bonus disclosure at expense of smaller B-Ds

From InvestmentNews

Added on March 2014 in Form an RIA

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Summary: A proposal advanced Monday by Wall Street's industry-funded regulator that would require greater compensation disclosure has exposed a chasm in the advisory industry, pitting smaller broker-dealers against large wirehouses and independent advisers.