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They recently increased the amount to $100M AUM. I have a RIA. It's not so bad working with the state regulator. In some ways they make it easier for small firms. The hardest part is preparing your first registration and ensuring your ADV 2 is correct. They pretty much leave you alone. In PA they even provide free seminars on how to remain compliant.
You may also look for an RIA that's willing to hire new IAR's. If you have a book that you can convert to planning clients, you are ahead of the game.
I going in the opposite direction. I started with my 65 and built my RIA while I was a Realtor. I just got my insurance license and placed my real estate license in escrow. What's similar is that I intend to use life insurance as a foothold and then convert clients to planning clients. I'm also using life and annuities to lower my account minimums. Right now my money manager has a $50k minimum. Insurance will bring that down further. That way, I can tap a market that the big boys ignore (<$250k), the middle income and blue collar. It's profitable because after the expenses (I controll) 100% of net is all mine. 100% of commissions, 100% of fees. For example if I charge 1% on a small 401(k) plan of $1M - $5M I get all $10-$50K minus expenses (Few and far in between). 1% on a $50k IRA rollover will be $500 a year in fees and growing with account. I just have to conduct annual reviews, send some happy holiday mailings, and try to up-sell to other planning products and/or life products. I have a tiered pricing system so that 1% was a simplified example.
So, sell a group life policy to a small company and up-sell to get the 401(k) business or the get the owner's wealth management business or both. Cha-Ching! If you build a big enough book the BD's look for you but who needs em and their 30bps if you're lucky?
It's been two years. How has this model worked out for you?
