u/Ok-Temperature3180

What’s up all - happy 4th week to all of my fellow Americans, and Canada day to all of our friends up north!

Been reflecting on the 1st half of this year (being slower with the holiday coming up this week, had some free time).

Looking for some raw honest feedback on what the growth trajectory is for my business outside of me just TVM calculating it or ChatGPT. I am curious on what real lifestyle looks like as the business progresses, how the work/life balance is, and true take home compensation to serve your family.

Just turned 30, $25m AUM. Avg fee is 1.25%. Most of the book is middle America. Retirees between 500k-1.5m, or families making 200k+. Brought on $8.5m new last year (7.5m net but only a few clients in retirement taking liquidations).

Also have $2m ACH scheduled annually. I think a safe assumption is that I will continue to minimally do $7.5m net new.

Based on some math, 5 years from now it’s $80m. 10 years, it’s $160m (8% growth).

1. Anyone been on a similar path that is years ahead of me? What is your practice like? How much overhead/what % of revenue are you keeping.

2. I see 10 years, 160m. Avg 1% by then, 1.6m revenue. Is it really that simple?

3. What is life ACTUALLY like? Clown on me all you want - I’d like to be able to operate surge meetings, work 180-200 days a year, have a country club membership, be involved in my kids lives, have ability to travel, create an impacting family legacy with wealth.

(Question 3 is legit from the heart - I don’t have mentors in this circle of life outside of my BD connections - so none of them operate in the RIA mindset and quite honestly I do not want to emulate their lives)

What perspective do you have for me generally? Thanks for the feedback!

Planning on using Comply. Reading their contract and TOS - literally looks like if something goes wrong, they have zero liability and push it all on me.

Which isn’t shocking, I knew it would be that way if I’m operating as CCO.

Definitely getting nerves making the transition from BD to Solo RIA and having it fall on my shoulders.

Any pitfalls or concerns I should be on the lookout for?

Has anyone has experience of something actually going wrong or am I just over thinking it, and as long as I’m truly being a good advisor and following their protocols in their software, I should be good?

Appreciate the feedback, and reassurance (hopefully)

Been in a BD space for a while, and have really done a lot of business visioning and soul searching on what I want my practice to look like for my clients and business model.

The frustrations of a BD come with specific compliance hurdles as well as grid + other custodial fees. Looking for some REAL perspective and math behind these numbers.

Current book is $25m in advisory across 200 households. Aav fee 1.25%.

Check the math out for me

- 25m @ 1.25% = $312,500/yr

- current comp at BD on that is $140,000/yr

Expected RIA expenses (what am I missing?)

- compliance $12,000/yr estimate

- right capital $3,000/yr estimate (already paying)

- e&o $2,000/yr estimate (already paying)

- CRM $5,000/yr estimate (already paying)

- custodian (would use altruist)

- hazel.ai $2,400/yr (already paying)

- registration costs in OH start up and annually ($????)

- licensures $3,600/yr (already paying)

- Wealth.com $5,000/yr

What can I possibly be missing?

I’d like to start off on the right foot in a position of strength. I am not willing to look into tuck in’s and give up any basis points or be at a grid.

What other general advice do you have for someone that went from BD to Solo RIA?