The real cost of going RIA—and why many choose independence.

Making the move to launch your own RIA isn’t just about breaking away—it’s about building something that’s truly yours. 

Whether you want greater control over your revenue, the ability to serve clients your way, or the chance to build long-term business value, going independent offers the freedom and financial upside many advisors seek.

While some hesitate due to concerns over potential costs or client retention, the reality is that breakaway advisors find that the long-term benefits—such as increased revenue retention and business equity—outweigh the initial costs. Independence is not just a shift in business structure—it’s a strategic investment in your future success. Michael Kitces at Nerd’s Eye View shares, “What I find for a lot of advisors I've seen that go through this comparison is that, they end up keeping somewhere between about 10 to 20% more of their gross revenue after they make the switch.” 

Investing in your growth

Yes, there are costs involved in establishing an independent firm, but they’re manageable and often outweighed by the long-term benefits. Here’s what to plan for:

• Business setup: Legal fees, compliance registration, branding, and office setup
• Technology: CRM, portfolio management, financial planning software, and cybersecurity
• Custodian and compliance: Ensuring your firm operates efficiently and securely
• Marketing and growth: Website, content, SEO, and ongoing client acquisition strategies

Why going RIA can be worth it

Transitioning to independence isn’t just about covering costs—it’s about creating opportunities. Here’s how:

• Increased earning potential: Keep more of your revenue instead of giving up large percentages in payouts.
• Business equity: Build an asset with real enterprise value—something you can own and grow.
• Flexibility and control: Choose the clients, investment strategies, and technology that align with your vision

While the decision to go independent is not one-size-fits-all, it represents an opportunity to create a firm that aligns with your long-term vision. With the right strategy, becoming an RIA can be a smart investment in both financial and professional growth.

Important information:

*Source: Michael Kitces at Nerd’s Eye View, Revenue & AUM Requirements To Break Away: Wirehouse To RIA

Information provided by Independent Advisor Solutions by SEI, a strategic business unit of SEI Investments Company (SEI®).