Introduction
Corey: Hey everyone, thank you so much for taking the time to hop on the podcast today. If you’re considering opening your own RAIA, tucking into an existing one, or just curious about the independent space in general, this is definitely the episode for you.
Today we have Chuck Foa, CEO and Founder of Sovereign Financial Group, a breakaway solution in the RAIA space. He’s also the founder of GoRAIA, powered by InvestmentNews, which is a fantastic resource for advisors exploring the RAIA channel.
Chuck, I really appreciate you hopping on today.
Chuck: You bet, Corey. Thanks for having me on. Looking forward to it.
Chuck’s Journey: From Wolf of Wall Street to RAIA
Corey: You started in the independent broker-dealer space before moving to RAIA. Walk us through your journey.
Chuck: It actually started even earlier. Back in the ’90s, if you saw The Wolf of Wall Street, that was basically my life. New York City, cold calling, stockbroker—1995 to 1999. It was like working in a frat house. The movie, if anything, underplayed some of the shenanigans.
After saving some money, I opened a Raymond James branch on the IBD side and ran that for 20 years. Over time, I realized I was basically running RAIA-style business inside a broker-dealer. I was 98% fee-based.
Then you start asking yourself:
Why am I subjecting myself to lower payouts and so many constraints—especially around marketing, video, social media, content?
In 2019, after about two years of due diligence, I broke away and formed Sovereign. The goal was to create a niche tuck-in solution built specifically for cash-flow-based financial planners—advisors using eMoney, RightCapital, or Orion Planning.
We know who we serve. If you like how I run a business, you’ll like Sovereign. If you don’t, you won’t.
Why RAIA Is So Exciting
Corey: What excites you most about the RAIA channel today?
Chuck: Freedom.
For example, we just launched our own 40-Act tender offer fund. Try walking into your complex manager’s office and saying, “I’d like to start a mutual fund.”
Not happening.
Now, that’s extreme—but the point is flexibility. Marketing freedom. Faster compliance turnaround. Creating systems that align with how you believe advice should be delivered.
At Sovereign, we built a compliance framework we call “Compliance Your Way.”
Instead of traditional risk questionnaires alone, advisors can use a 5-year cash flow plan as the compliance anchor. We integrate planning software directly into asset allocation decisions.
You run the 5-year cash flow report.
Push a button.
Trading desk executes.
You’re compliant.
That kind of system-building just doesn’t happen inside most broker-dealers.
The Power—and Challenge—of Choice
Corey: There are hundreds of viable RAIA options today.
Chuck: That’s exactly right. If you want to join:
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A wirehouse → maybe a handful of choices.
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An IBD → 10 or so strong options.
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An RAIA → literally hundreds of viable firms.
That’s both the good news and the bad news.
If you don’t want to build your own RAIA, you can likely find one that matches 95% of what you’d build yourself.
Who Should Open Their Own RAIA?
Corey: Is there a personality type that should open their own RAIA?
Chuck: Yes. Entrepreneurs.
If you love:
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Building systems
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Integrating tech
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Designing workflows
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Creating your own rules
Then open your own.
If you don’t love the business side—plug into a firm that’s already built it.
Everyone wants a line of demarcation. Here’s mine:
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At $500M–$1B AUM → economics clearly favor owning your own RAIA.
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Under that → it still works, but it’s about pride of ownership more than optimization.
And here’s what I love about this industry:
Low barrier to entry.
Massive upside potential.
What do you need to start an RAIA?
A laptop and a dream.
But make sure you truly want to run a business.
Why More Advisors Don’t Go RAIA
Corey: Why don’t more advisors move directly to RAIA?
Chuck: Lack of understanding.
Ten years ago, going BD → IBD → RAIA made sense. Today? There are enough strong tuck-in options that you can go RAIA immediately.
But advisors get tempted by transition checks.
Here’s the reality:
A big recruiting check is often just your own money, paid to you early, in a tax-inefficient way.
If you believe in your book long term, that check usually doesn’t win financially.
That said—confidence matters. If someone’s worried about retention risk, I understand why that money feels like security.
The “True Net Payout” Concept
Chuck: One of the most misunderstood areas is payout.
If you’re at a 90% payout broker-dealer, spoiler alert:
You’re not netting 90%.
You have:
When you add it all up, many advisors are netting 60–70%.
On the RAIA side, you eliminate:
Yes, you add compliance cost—but that’s often the only true additional expense.
When you look at true net payout, RAIA is often meaningfully higher.
Investment Flexibility
Corey: The investment shelf is also dramatically broader.
Chuck: Without question.
You can:
In the BD world, certain low-cost ETFs aren’t available without ticket fees because they don’t revenue-share.
In the RAIA world? You use whatever you believe is best.
The Monetization Advantage
Chuck: There’s another huge factor: exit value.
Even if you love your broker-dealer, you should think about your final chapter.
RAIA multiples are materially higher than BD sunset provisions.
Not a little higher. A lot higher.
More competition. More capital. More buyers.
If you’re optimizing long-term wealth creation, that matters.
Fiduciary Brand Advantage
Chuck: Twenty-five years ago, saying “I’m a fiduciary” meant nothing to most clients.
Today?
One out of three prospects asks me if I’m a fiduciary.
And that number is rising.
The next generation inheriting $70–80 trillion?
They care deeply about fiduciary advice.
Being independent, being anti–big bank, being transparent—that resonates.
What was once seen as a disadvantage (no big wirehouse logo) is now often a competitive advantage.
Final Thoughts
Chuck: There’s no right or wrong path—only informed or uninformed.
Understand:
And then make the decision.
Just don’t forget about the final monetization stage. That chapter matters more than most advisors think.
Corey: Chuck, I really appreciate the time and everything you’re doing to educate advisors on these complex decisions.
Chuck: Likewise, Corey. Thanks for having me.
Corey: Hope you have a great day.
Chuck: You too.
