Breakdown of IMO Vs. Insurance Company Channel

[pfg1]

Got it .. RIA's from what I understand it could be someone like myself if I decide to get a 65.. but if I don't want the liability of being an RIA ..I can be an IAR operating under an RIA. I was just confused by when KT said .. "RIA, the fund" .. he must have been talking about RIA's managing their own fund.

Now as far as being able to sell insurance. I thought both RIA's and IAR's would be allowed to sell insurance and get paid commissions but that's what they call a "fee based" .. but the fee only RIA's/IAR's are the ones who get paid by AUM or flat fees.

The RIA is the advisory FIRM. Is just that if you want to go through all the compliance, costs, etc to set up an RIA firm you can do that - or if you don't own the firm, you would become an IAR of a firm.

As SC mentioned, there are a number of RIA's that do set up their own proprietary funds... though most don't from what I've seen.

IAR's can certainly sell insurance and they can earn commissions. They can also sell Fee Based planning as well. RIA firms sometimes also have a sister entity that does the insurance & annuities. Some also have a BD channel that does that business. Hope that helps.

 

[DHK]

Just found this video with Michael Kitces that related to this thread. Just thought I'd share:

 

[HVelocity]

I'm an IAR. I own and RIA. I am Insurance licensed. My RIA is licensed as an agency. I work as a financial planner and I use all financial products available in the market including annuities. I was 6 licensed but I chose not to take on a B/D so I don't sell variable products or mutual funds. I contract with money managers (RIA's) who work in managed accounts with access to mutual funds. I can contract directly with some carriers, but I use BCH (apparently a BGA) and Ritter (apparently an FMO) which is more efficient for me so I can customize the strategies I use for my clients and keep their costs down. So, I have access to over 30 carriers as an independent agent. I only ever contract as a GA through my agency. I have a solo practice but I can always take on agents through my agency. I found those brokers through my prior affiliation as a Mutual of Omaha career agent. MOO uses BCH, and career agents were free to contract outside of MOO so a friend introduced Ritter to me for Medicare products (Advantage, Supplements, Part D, etc.). Some carriers only contract directly with agents. So, I keep a file of each one I come across in case I have a case they may have a solution for. Hope that helps. I have no idea what IMO's, BGA's, FMO, and the others mean. I just shop for the contracts that meet my business needs.