Option Fanatic, RIA (Appendix C)

Today I will finish tying up the loose ends from this blog mini-series.

I left off discussing compliance for investment advisers (IA).

What limited information I have been able to obtain about standard guidelines implemented by compliance firms has left me somewhat dazed and confused. The red tape certainly does hinder/prevent action. I don’t think it’s all for naught though. With all the chicanery that has run rampant throughout the financial industry (see fourth paragraph here), prospective investors need to be protected.

Should I go forward with my own IA, I will probably hire a lawyer and/or compliance firm that specializes in these matters. I want to trade and study trading-related matters rather than getting stuck in all the red tape.

Should I go forward with my own IA, I may consider pursuit of a relevant credential. My doctorate is in pharmacy, which is not relevant. I don’t have a CFP, a CFA, or even an MBA. I don’t believe the credentials mean much with regard to character (honesty). Nevertheless, they are a symbol of expertise and they may be good for marketing. I would have to get licensed through the Financial Industry Regulatory Authority (FINRA), however, by passing the Series 7 and/or Series 65 exams.

Why would people want me to manage their money?

Don’t pick me because I’m good; I don’t believe picking the right stocks or making the right trades is even a thing. All I can do is put the odds in my favor, which is what what I do. From that point onward, if we lose then we lose and the possibility always exists that we will. This is a different mindset but it’s what I believe is really going on.

A better reason to pick me might have to do with my pharmacy experience. What about this:

     > As a pharmacist, you trusted me with your life;
     > you can certainly trust me with your money.

I truly believe this even though it may sound somewhat cheezy. I gave recommendations on medication, taught people how to use medication, and evaluated medication from time to time. If people could trust me with tasks like these—and they most certainly could—then they should also be willing to trust me with their investments.