Series 7

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Aug 4, 2005 6:46 pm

I have my series 6 and 65.  I am wondering if I really need the 7 or will a limited lic do just as well?  I make most of my income from doing tax prep and this is also my client base. I have only been doing this for about six months and so far only one person has asked me about buying specific stocks.  Most want funds.  I am also considering my CFP and starting a new office in PHX.


Nay thoughts good or bad?

Aug 4, 2005 8:26 pm

Get the 7.


Think of it this way.


Suppose you have a potential client come to you that has inherited a boat load of stocks and bonds.  You recommend a nice asset allocation portfolio of diversified mutual funds.  The client likes your recommendation.


How do you sell out the stocks and bonds with a series 6?


You can...


1)  Refer them to somebody else with your company. (you loss the commission on the sale)


2)  Refer them back to the broker that purchased the original investments.  (you lose the commission on the sale)


3)  Try to find somebody with scruples and morals that will not attempt to steal your client and will help you and your client sell out the stocks and bonds so that you may put them into your recommendations.  (you lose the commission on the sale and risk losing the client relationship)


Either way you get screwed of a commission on the sale and risk losing this potential client because of your inability to provide a service.

Aug 4, 2005 8:30 pm

I thought that the limited lic allows you to sell anything but options and US Treasury items?


Am I wrong in this

Aug 4, 2005 8:56 pm
richardmlake:

I thought that the limited lic allows you to sell anything but options and US Treasury items?


Am I wrong in this



You are wrong.  You can sell mutual funds and variable contracts (variable life and variable annuities if you have an insurance license).  You cannot sell individual stocks or bonds.  Stock mutual funds = yes; bond funds = yes.