![]() ![]() “It does give clients confidence,” Paddock says. He adds: “For that $800,000 that I manage, I use TD Ameritrade, and I don’t pay any basis points for that.” He also notes that there are significant benefits, especially for small firms, in using a well-known brand with an integrated tech platform. “It’s a huge cost savings to me,” Paddock says, who pays $421 a month to be in the XY Planning Network. XY Planning Network advisors, such as Ten Talents’ Paddock, have access to TD Ameritrade through a partnership intended to help grow fee-only RIA practices. Some smaller custodians, such as Shareholders Service Group, service RIAs with little or no AUM. While Garcia’s company requires no minimum AUM, a typical RIA makes a commitment of $150M or greater, he said, noting that the firm provides options for RIAs of all sizes, including a TAMP. Fidelity Management & Research Company and Fidelity Institutional Asset Management, as of. “One of the main things we look at is a firm’s commitment to driving growth and, ultimately, building a professionally managed business,” said Gabriel Garcia, head of relationship management at BNY Mellon’s Pershing Advisor Solutions, in an email. For one, advisors can make the case to a custodian that they will be lucrative in the future. ![]() There are options for financial planners with low AUM. Investing has become commoditized, he says, and clients don’t need someone to do it for them, or charge high fees for it. “I try to talk out of investment management,” says Kaleb Paddock, a sole practitioner at Ten Talents Financial Planning, who manages a little over $800,000 in AUM and charges monthly and annual fees. These advisors charge monthly retainers or annual fees for their planning, and don’t spend much time with the portfolio. ![]() There is also a growing group of advisors who are not looking to grow their AUM at all. “Size is a factor, for sure, but we look at the whole picture.”Īs more advisors go independent, there are more startup RIAs with low AUM. “We take into consideration a firm’s assets, growth prospects and its business plan, among many other factors,” says TD Ameritrade Institutional spokesman Joe Giannone. Other custodians, including Schwab and TD Ameritrade, do not have official minimums and say they look at other indicators. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |