That's true, many people don't necessarily know how the markets operate. And many seem to like it that way. Remember, you have your own bias. The markets are different than what is in your head. I still get the feeling you don't want to sell, just open an office and have people stop by on their way somewhere. Even if its on the internet. Just because you look at things a little differently than the norm is not enough to open a business. So far there's little anyone can invest in. You can take an old car and completely redo it. It will take a thousand hours or more and money for materials. Are you going to sell it after that? Can you make a profit more than you would have made if you just got a job doing the same thing? I hate most jobs working for someone, so maybe that's the ultimate motivation. You really need to think about what it is you actually enjoy doing. It might be different than what you are thinking.
I think being there for the long haul with a client and helping them navigate the ups and downs would be pretty satisfying. Even if the market does say go up a few % and a custom portfolio didn't fare as well, there is no proof to say on a risk adjusted basis the ideas were flawed. It is all very subjective according to objectives and risk tolerance. I would differentiate myself a lot in terms of being able to and willing to personally relay what is going on and be fine with talking to people more, and to be open to some unconventional portfolio adjustments and allocations. And RIAs obviously also have to know all the tax rules and ways to maximize gains and that is all key. But within this space of financial advising I think there is a dearth in many cases of in-depth market awareness of the bigger picture and also understanding the more intricate nuances like technicals. If it got to where I would ideally envision and I had my own RIA I know that would be a terrific career even if I weren't managing 20+ million. One that requires never being complacent, but that's how it should be in anything.
Yes, the link for IB was meant for the op who wants to start his own RIA. I'm sure you had a good reason to drop IB, I was just mentioning them as a possibility. There are other firms that will gladly accept his clients' funds. Schwab has its own separate division that just deals with advisors and their clients, for example.
Good luck competing with Wealthfront and Schwab Intelligent Portfolios. At the end of the day, can you outperform these robo-advisors on an annual basis? That's all the clients want to know.
No, those aren't the people RIAs want as clients. A good RIA's value-add isn't in winning a short-term performance derby against this-or-that robo.
RIA's want people who don't know how to measure investment performance because there is no way they can win business on that basis. Robo-advisers by definition outperform traditional shops because of lower fees and lower portfolio turnover plus their simple algo's which tailor asset allocation to the facts and circumstances of the client outperforms "discretionary" management. Question: how closely did your expectations of success as a prop trader match your ultimate performance? So now you are going to take a flyer with OPM? I too know many people in this industry including extended family, its not built on investment performance, its sales and its sleazy. Listen to Mav.