Step 1: Review your compensation

The first step in the RIA Operator roadmap is reviewing your compensation. Why this you say?

Compensation is why most of us work... unless you're independently wealthy and are working because you want to.

From personal experience, I've found that being compensated according to the value I feel I provide is life-changing for myself, my family, and inspires me to do better work! Which in turn helps my employer, colleagues, and clients.

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If you work for an RIA, think about your:

Base salary
Performance-based incentive pay
Benefits like PTO, opportunities for professional development, a defined career path, insurance
Equity ownership opportunities (more on this in Step 7)

Based on the attached '22 Schwab RIA Comp. Report, here are the average total compensation amounts by job title:

Senior Client Account Manager/Relationship Manager - $266,000

Investment/Portfolio Manager - $192,000

Business Development Professional - $167,000

Director of Client Service - $134,000

Operations Director/Manager - $120,000

Client Account Manager/Relationship Manager - $113,000

Financial Planner - $105,000

Technology Professional - $101,000

Executive Assistant - $95,000

Research Analyst - $94,000

Human Resources Professional - $94,000

Internal Accountant/Bookkeeper - $87,000

Compliance Associate - $84,000

Marketing Professional - $83,000

Trader - $80,000

Portfolio Administrator - $77,000

Office Manager/Administrator - $69,000

Client Services Associate - $68,000

Operations Associate - $66,000

Paraplanner - $64,000

Receptionist - $50,000

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If you own an RIA, think about your products and services and how much you charge for:

Packaged services: starter, mid-level, premium
Subscription services: monthly or annual set fee
Goal-based services: Buying a house, navigating a divorce, planning for kids' college
A la carte services: Allow clients to pick and choose from your available options
Investment management: The classic AUM fee, should it be 1%, tiered, competing with robo rates, or premium rates of 1.5% like Matthew Jarvis and Reese Harper of Elements?

I love discussing advisor pricing, so feel free to chat me about this, or start a thread in the community!

I'll be putting together some detailed resources on exactly how to go about reviewing your compensation, but for now, I'll attach these PDFs:

2022 Schwab RIA Compensation Report
CFP® Financial Planning Career Paths Guide
Simon - Kucher & Partners: Nothing to Lose - Pricing for the Next Generation of Wealth Management Clients

#hiring #growth #freedom

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