Ep 58: Break Away from Selling Products and Launch a Fee-Only RIA

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Do you want to start your own fee-only RIA, but aren’t sure how to break away from a current employer or stay profitable without selling products? This week’s conversation with Kenneth Klabunde is loaded with valuable information that you don’t want to miss.

Kenneth is a financial advisor and the founder of Precedent Asset Management, a fee-only RIA in central Indiana. He graduated in 1997 and entered the broker-dealer world. He started his career creating financial plans in order to sell mutual funds.

Kenneth spent 15 years in a hybrid firm — trying to change the industry from within — before laying the groundwork to start his own firm. His goals for his own business included serving his clients without the sales and taking the time to establish his processes first.

On this episode of XYPN Radio, we dive into the path he followed to break away from sales and start his own fee-only RIA. Kenneth shares how he was able to begin his new firm with $20 million in assets and the arrangement that made that possible.

We also discuss the legal aspects to keep in mind, what to do if you’ve signed a non-compete agreement and the basic strategies for bringing on new employees. This episode is a fascinating look into everything involved with starting a fee-only RIA after breaking away from a previous employer who operated a different, sales-focused business model.

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Listen to the Full Interview:

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What You’ll Learn from This Episode:

  • Whether advisors can balance working in hybrid firms to better serve clients.
  • The percentage commission that financial planners generally make on financial products.
  • Kenneth’s breakaway process for starting his own firm.
  • The legal aspects that are involved with leaving an employer.
  • What to do if you signed a non-compete agreement with your current employer.
  • Why he didn’t follow all of the legal advice received when he decided to break away.
  • What steps brokers should take before resigning.
  • Strategies for bringing on new employees after starting a firm from scratch.

Featured on the Show:

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