Advisor Flipbooks

14 See yourself as an RIA. RIA LAUNCH GUIDE Find the right investment management partners. You may choose to select a single provider for everything you need, including solutions for high-net-worth and other advanced planning clients, OCIO and ECIO services, goals-based wealth management, tax management strategies, and practice management resources. While a 2023 Cerulli report notes that more than three-quarters (76%) of RIAs handle portfolio construction decision-making internally, 1 there is likely an opportunity to gain scale and capacity by partnering with third-party investment managers. The report cites that "smaller RIAs are far more likely to outsource portfolio construction than larger practices with greater headcount and resource availability." According to SEI research involving high-net-worth clients, the overall relationship along with trust and transparency were rated as the top drivers of client satisfaction. Investment performance was the third most important driver of investor satisfaction. 2 By outsourcing areas of your business that are highly commoditized and labor intensive, such as investment management, you and your team can gain time for highly valued activities like time with clients, personal goals-based conversations, and specialized planning, without sacrificing investment performance for your clients. Select your professional partners. There are a number of professional partners that you'll want to have in place to support your RIA business. These partners are critical as you set up your RIA business and navigate inevitable bumps in the road. According to the InvestmentNews study, RIAs spend an average of 2.0% of their revenue on professional services, including their legal, compliance, accountant, and other professional fees. 1 Cerulli, U.S. RIA Marketplace 2023 2 John D. Anderson, Allie Carey, "Your high-net-worth strategy," SEI, 2018. Use our Key partner checklist to organize outsourced business relationships.

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