Independent financial advisory practice
Open a small local advisory firm that manages investments and retirement plans for households in your community.
- $15k-60k
- Full-time
- Own premises
- Licence or permit needed
Estimates for a small start in the US, not guarantees.
Official data
23,359 US businesses with employees in this field, -3.9% in a year
NAICS 523930 “Investment advice”. Source: U.S. Census Bureau, County Business Patterns 2023.
What it is
A full-time local advisory firm with a small office where you meet clients, build long-term plans and manage their investments. You may be a registered investment adviser, or work through a broker-dealer or insurance partner.
Your first three steps
- Decide your model (fee-only registered adviser, or affiliated with a broker-dealer) and check your state regulator's registration and exam requirements
- Form an LLC, get an EIN, and price office space, software and insurance for the first 12 months
- Start building referrals through local accountants, estate lawyers and community groups, and host a free retirement basics workshop
Who pays
Local professionals, business owners, near-retirees and retirees who want ongoing, face-to-face advice.
How it makes money
Usually a yearly percentage of assets you manage, plus planning fees. Some advisers earn commissions on insurance or investment products, which brings extra disclosure rules.
Skills that help
- Investment and retirement planning knowledge
- Networking and referral building
- Patient, trustworthy communication
- Running a compliant small business
Watch out for
- State and SEC or FINRA registration, exams and ongoing compliance filings, so check what applies to your model
- Fiduciary duty and conflict-of-interest disclosures, especially if you earn commissions
- Professional liability, general liability and cyber insurance
- Insurance products need a separate state insurance license
- It can take a long time to build enough client assets to cover costs, so plan your savings runway
Deep research report · US
Everything you need to start: independent financial advisory practice
Researched with live web search for United States: real startup prices, the licences and rules, what others charge, a break-even example, how to find your first customers and a 30-day launch plan. With sources.
- Startup costs with real prices
- Licences, registration and rules
- Pricing: what others charge
- Break-even example
- Finding your first customers
- 30-day launch plan
- Risks and how to reduce them
Questions people ask
How much does it cost to start a financial advisory practice?
Startup costs are typically around $15,000 to $60,000, depending on your office, insurance and how you set up your firm. Check which registration and compliance costs apply to your model before budgeting.
How much can an independent financial adviser earn?
Monthly revenue is typically estimated at around $4,000 to $20,000, depending on your client base. It can take a long time to build enough client assets to cover costs, so plan a savings runway.
What registration and rules should I check before starting?
Check state and SEC or FINRA registration, exams and ongoing compliance filings for your model. Also check fiduciary duty and conflict-of-interest disclosures, especially if you earn commissions, insurance cover, and the separate state license needed for insurance products.
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