The worst off of the independents are those with between $100 million and $200 million in assets under management because they do not have enough to achieve economies of scale, according to the study. which stated that independents have to have a book of business 27 percent larger than the corporate advisor to achieve the same income. The $200 million mark is often the tipping point where the independents reach some economy of scale, according to the study.

“It depends on how big you want to be,” says Juge. “A business with $50 million in AUM is very doable.”

Locker agreed, saying she has carved out a very comfortable lifestyle, and Poe argued he would have to give up more of his profits if he worked for a corporation.

Poer says the advisor connected with a corporate RIA has the advantage.

"The advisor associated with a corporate RIA has a better potential income because the corporate RIA has economies of scale for technology and administration in most cases."

 

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