I stumbled across a company called PersonalRIA back in September. I found it through the TechCrunch50 Conference, a venue created where the best start-ups launch their ideas and proposals in front of the industry’s most influential VCs, corporations, fellow entrepreneurs and press. Coincidentally, TechCrunch50 is where I learned about DropBox, the completely awesome and innovative file backup, sync, and sharing platform that I use all the time.
For more on TechCrunch50, visit their website: http://www.techcrunch50.com
Below is the presentation of the PersonalRIA platform presented at TechCrunch50.
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An RIA for the Middle Market
As PersonalRIA is still in the start-up phase, I doubt if any FPPad readers have come across this company. From what I gather about the company, they’re designed to be a website portal intended to connect middle-market clients with Registered Investment Advisers, or RIAs. Historically, middle-market clients have been unable to use the services of most RIAs due to the prevalence of minimum investable asset requirements enforced by many firms.
What PersonalRIA does is provide users with a list of participating RIAs that manage money so the user can choose one that will manage his/her money. They don’t elaborate as to how users identify RIAs they want, but I would venture a guess that historical portfolio performance would be a statistic users would want to use (but we know how well past performance is as an indicator of future results).
Shadowing the RIAs Strategy
The benefits of this service model, according to PersonalRIA, are full transparency of transactions and access to a wide variety of RIA strategies. Since the user continues to monitor his/her own TDAmeritrade or ETrade account, trades are displayed in near real-time and the holding and history are avaialble through the retial brokerage platform.
PersonalRIA’s Business Model
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