Why you Need a CFO for your Independent RIA

As the owner of an independent RIA, you likely wear many hats. You're an advisor to your clients, but you could also be overseeing compliance, accounting, operations, and more. Each of these tasks pulls you in different directions, and most importantly, away from your clients. Even if you are succeeding in juggling each of these responsibilities, doing so still presents a problem... your firm is controlling you!

 

In this episode, I discuss shifting that control back into your hands by hiring a dedicated CFO. I detail what a CFO does for your firm, average compensation in the RIA space, and the education and experience this professional adds to your firm. In addition, I also discuss the importance of looking at your firm's financial health and strategy through an objective lens. You don't want to miss this episode!   This week on The Financially Simple Podcast 

 

• (1:35) RIAs Who Use a Dedicated CFO

• (4:25) Difficult to Raise Fees

• (5:26) What does a CFO bring to the table?

• (8:50) The Most Important Thing for Me? Analyzing the Key Metrics

• (10:26) If You Want to Use a CFO, Where Do You Look?

• (12:18) External or Fractional CFO

• (14:56) The Pros and Cons of Hiring an Outside CFO vs Hiring an Internal CFO

• (16:53) Qualities and Designations to Look For

• (21:44) Why Do You Need a CFO?

• (24:09) "Complete Objectivity is Not an Option"

• (25:13) A Dedicated CFO Decentralizes You

• (26:05) An Unbelievable Peace

 

Our Favorite Quotes: 

"When you're focused on growth, and not dealing with the day to day crap that we all deal with, now we're able to take a step back and make decisions that, ultimately, we know we need to make that we just don't want to." - Justin Goodbread

 

"What we can do is reduce our subjectivity - what I call 'I see, therefore it is.'" - Elizabeth Thornton

 

"A dedicated CFO has the ability to dig into the granular details of your firm's finances in ways that you just don't have time to do." - Justin Goodbread

  About The Financially Simple Podcast    If you are looking for a podcast that speaks directly to the challenges and puzzles of running a business, you’ve come to the right place. The Financially Simple podcast was built for you. With over 400 episodes and counting, our host Justin Goodbread covers a broad range of topics, from starting a small business, to prepping it for sale, to growing your personal wealth. Justin’s combination of analytical skills, tough love, and a healthy dose of experience delivers practical ideas that will benefit business builders at every stage of their business journey.  

  If you have questions, or comments for Justin, submit those at: https://financiallysimple.com/ask-justin/    Connect with Justin: Financially Simple newsletter  Facebook  LinkedIn  Twitter    Subscribe Here: Apple Podcast  Spotify  Google Podcast  iHeart Radio  Stitcher   

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Financially Simple is a division of WealthSource Partners, LLC (“WSP”), which offers investment advisory and financial planning services. All investing involves risk of loss, including the possible loss of principal. Past performance does not guarantee future results and nothing in this podcast should be construed as a guarantee of any specific outcome or profit. All market indices discussed are unmanaged, do not incur management fees, costs and expenses, and cannot be invested into directly. Business planning services offered by WealthSource Business Advisors, LLC (“WBA”). 

 

This podcast is distributed for informational purposes only. The content of this podcast represents the views and opinions of Justin Goodbread and/or the podcast’s guests and do not necessarily represent the views and/or opinions of WBA, WSP or their affiliates or representatives. Statements made in this podcast are subject to change without notice. Neither WBA, WSP or their representatives, the podcast’s hosts or its guests have an obligation to provide revised statements in the event of changed circumstances. Statements made in the podcast are not to be construed as legal or accounting advice or as personalized advice of any nature. Listeners should conduct their own review of any statements made or strategies discussed and exercise judgment or consult with their own professional advisor to see how the information contained in this podcast may apply to their own circumstances.