The financial industry is evolving. Over the last several years, more and more advisors are focusing on growing their fee-based business. While overall business mix should continue to shift, continuing to utilize a broker-dealer via a hybrid model could provide more resources to offer sound guidance on all aspects of a client’s financial portfolio, goals, and even wealth transfer. We will explore below some of the top benefits of an RIA hybrid business model.
Independence and Innovation:
Within a hybrid business model, advisors have the flexibility and choice as to how they engage with their clients. Hybrid advisors employ the newest advances in technology within the evolving RIA space while still servicing and growing their core legacy business. Having the ability to offer a wide variety of investment solutions, including traditional and alternatives, allows advisors to run their practices their own way and enjoy greater independence.
Broader Investment Solutions:
Having the depth of resources to offer a broader array of investment solutions enables advisors to better tailor recommendations for their clients. Researching and vetting products takes time and experience. Leveraging the due diligence team at a broker-dealer will help minimize risk, time and effort spent on sourcing, researching, and screening potential investments. This streamlined process will help to mitigate the risk for the client, advisor, and firm. The end results are the ability to construct more resilient portfolios and ultimately create a better client experience.
Community and Culture:
Joining a broker-dealer and RIA hybrid allows an advisor to learn and share business-building ideas with a community while still enjoying independence. Pooling experience from other seasoned advisors will help gain valuable insights and perspectives when tackling new and unique solutions for clients. Ultimately, the broker-dealer and RIA hybrid relationship underscores the idea that while an advisor is independent, he or she is not alone.
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