Start a Fee-Only Financial Planning Firm

Advisors stay captive to broker-dealers for the brand name, but fee-only independence usually means keeping far more of every dollar.

1. 1

   Clear your licensing path

   You will register as an investment adviser: pass the Series 65 or hold a qualifying credential like the CFP. This is the legal foundation of an RIA, so handle it first.

2. 2

   Review your current contracts

   Have an attorney read your employment agreement for non-solicit and non-compete terms before you copy a single client name. How you leave determines what you can keep.

3. 3

   Register your RIA

   File Form ADV through IARD to register at the state level (SEC registration comes above $100M in assets), adopt a compliance manual, and bind E&O insurance.

4. 4

   Choose custodian and software

   Pick an RIA-friendly custodian such as Schwab, Fidelity, or Altruist, and planning software like RightCapital or eMoney, before you invite a single client over.

5. 5

   Set a fee-only model

   Flat annual fees ($3,000 to $10,000), hourly, or a percent of assets. Fee-only means no commissions, and that story is exactly what wins clients from captive firms.

6. 6

   Resign and transition cleanly

   Follow the departure protocol your attorney maps out, announce the new firm through permitted channels, and let clients choose to follow you.

7. 7

   Grow through one niche

   Serve one clear group (physicians, equity-compensated tech employees, retirees of one large employer) and become the specialist that referrers name first.