The trends speak for themselves: More and more advisors are choosing independence — and there’s little reason to expect that momentum will change anytime soon.
A recent study from Cerulli Associates found that advisor headcount at independent RIAs is projected to grow four percent annually through 2028. By contrast, advisor headcount at wirehouses and banks is expected to decline nearly two percent over the same period.
There is also a growing body of evidence showing that when advisors go independent, they’re happy with their decision. A 2024 Schwab survey of advisors found that 79 percent would make the decision to go independent again. Three-quarters of advisors reported they are happier working as an independent RIA.
But there isn’t just a single path toward independence. Advisors can opt to start their own RIA, or they can join an RIA that is already established. In this article, we’ll walk through the pros and cons of each structure.
Starting your own RIA
Independence is the main draw for most advisors looking to make a change. Starting your own RIA would seem like the ultimate act of independence. So why doesn’t everyone do it?
While going from an employee to a business owner sounds great on paper, being a business owner can end up becoming its own full-time job — and one that comes at the expense of the job of being an advisor.
Here are some of the things advisors must be responsible for when starting their own RIA:
- Building out an entire tech stack, including negotiating deals with vendors
- Ensuring compliance
- Hiring a support team
- Deploying basic Human Resources functions like payroll
Managing all of this on your own is no small task. Even if you’re lucky enough to bring a team of employees with you to your RIA on day one, you should expect that you’ll be spending a good chunk of your time running the business. Get familiar with the C-suite, because you’re probably going to be stepping into the roles of CEO, CFO, and CIO.
The reality is that the time you spend managing the business is time taken away from advising clients. And if you built your book of business on the back of unparalleled client service, then your practice may begin to suffer.
Of course, it would be disingenuous to say there aren’t real advantages to starting your own RIA. You gain total control over your business. If you want to make a change to a tech provider or onboard a new investment solution? It’s your decision, and yours alone. But the price of this kind of freedom isn’t free — it comes with major logistical obligations and considerable responsibility.
Join an existing RIA
Plenty of RIAs promise freedom to their advisors. Whether that promise bears out in reality will depend on both who you decide to join and their structure. One model for joining an existing RIA is as a W-2 employee. This can have its own benefits, especially for early-career advisors: You likely won’t need to build a book of business from scratch, and you gain access to an infrastructure that can help you grow and hone your skills as an advisor.
At the end of the day, however, working as an employee of an existing RIA still means answering to someone else. For some advisors, the shift to a fee-based structure and the fiduciary standard can be enough to be satisfying. For truly entrepreneurial advisors, joining an existing RIA as an employee may not feel completely satisfying, either.
A third option: Joining an established RIA platform
An RIA platform combines a similar level of freedom you’d get from running your own business with the support you’d get from joining an already-established RIA. Think of it as a kind of partnership: Rather than having to handle all the aspects that come from starting your own RIA, you can outsource many of the logistical elements to the RIA platform. At its best, this model can empower advisors to focus on what they do best — serving clients and building their business — while providing comprehensive background support.
One of the most important distinctions is ownership. On the right platform, you retain 100 percent ownership of your business and your client relationships. You build enterprise value on your terms, without giving up equity or control in exchange for support. Integrated Advisors Network is not private equity-backed, so our incentives stay aligned with the long-term success of our advisors, not outside investors.
That’s exactly our model at Integrated. Here’s how it works:
- Tech: Your tech stack is already built and includes access to industry-leading tools like Envestnet Tamarac.
- Compliance: A fully staffed compliance team handles all your needs.
- Back-Office: Our team manages your back-office functions, from billing to custodian access.
- Branding: You do business under your own brand and retain your own book of business.
Just as important, a strong RIA platform helps you plan for the future. That includes structured succession and contingency planning, so your clients are protected, and your business retains its value if you decide to transition or if something unexpected happens. You remain in control of those decisions, while the platform helps facilitate the right connections and support.
The importance of fit and culture
When you’re going independent and thinking about joining an RIA platform, ensuring you and your partner have shared values is one of the most important keys to a successful partnership. The best partners don’t think of themselves as outsourcers — they think of themselves as extensions of your team and will go the extra mile to help you reach your goals.
At Integrated, that’s the way we view our business: Your vision leads, we power everything behind it. Our structure is designed to be nimble, because the last thing we want to do is box advisors into a set of rigid rules.
While we believe independence is paramount, we also strive to build a collaborative community for our entire group of advisors, creating opportunities to share knowledge and build new capabilities.
Ready to take the next step?
Joining an RIA can be the best decision you make as an advisor. An RIA platform can represent the best of both worlds: Independence without any of the logistical burden of running your business on your own.
If you’re exploring independence and want a partner who can help you navigate the journey with confidence, we’d love to connect. Learn more about Integrated Advisors Network and how we support advisors in building independent practices designed for long-term success.