Finet Questions

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Mar 9, 2009 6:45 pm

A couple questions:

 
I am on the path to moving from Wachovia Securities to Finet.  For existing Finet Practices out there (or any other Indy practices), would you recommend an S-Corp structure or LLC?
 
Secondly, there is a program called "Stepping Stone" which runs $1,500 which helps you move to the Finet Platform.  If anyone out there has that document, PM me!
 
Thanks in advance.
Mar 10, 2009 8:03 pm

an S-Corp can be an LLC. So I think you may need to clarify. Do you want to be a sole proprietor LLC, an S Corp, an LLC that is an S-Corp, or a C-Corp?

Mar 10, 2009 8:30 pm

An S-Corp or a sole proprietorship (schedule C) will work for most situations.  If you have a reasonable level of production, the S-Corp will allow you some tax breaks that you won't get with a schedule C.  Your tax guy can fill you in on the details...

Mar 24, 2009 12:26 am
BlackKnight:

A couple questions:

 
I am on the path to moving from Wachovia Securities to Finet.  For existing Finet Practices out there (or any other Indy practices), would you recommend an S-Corp structure or LLC?
 
Secondly, there is a program called "Stepping Stone" which runs $1,500 which helps you move to the Finet Platform.  If anyone out there has that document, PM me!
 
Thanks in advance.



I am currently helping an advisor get off of Finet and go completely independent.  He still felt tied down to the products they had and tired of having to hear what they could not do. 

ash
[email protected]
www.FAfreedom.com - The Breakaway Experts

Mar 28, 2009 9:42 pm

Wrong answer.  I've shopped Finet's products against all other Indy shops and they have as much if not more in most cases.  Go prospect somewhere else.

Mar 28, 2009 11:57 pm
BlackKnight:

Wrong answer.  I've shopped Finet's products against all other Indy shops and they have as much if not more in most cases.  Go prospect somewhere else.


 
I am at Finet. They do not offer anything different than what other indies offer. Not to mention they still haven't figured out how to offer a decent performance report or have a hybrid RIA. There is no difference between the Products at Finet and those of PCG and ICG. I have shopped other indies and have found them to be much more open and flexible than Finet.
Mar 29, 2009 1:04 am

TWheels, I just got my proforma for finet and had a feww conference calls. 72% after all the surprising ticket charges and admin fees. It is what it is. So I guess to go , and make the most of it, I should convert my fundport to c shares, go asset advisor wereever I can , managed money is out except where I can go full price, small commision accounts are out and go c shares. I want to go but what type of business fits there ?

Mar 29, 2009 11:49 am
Redpen:

TWheels, I just got my proforma for finet and had a feww conference calls. 72% after all the surprising ticket charges and admin fees. It is what it is. So I guess to go , and make the most of it, I should convert my fundport to c shares, go asset advisor wereever I can , managed money is out except where I can go full price, small commision accounts are out and go c shares. I want to go but what type of business fits there ?


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Of course Finet offers the same an others, they have
to.  But the one thing most advisors may or may not realize is that the
firms know once you have joined and the clients have signed over, you are
trapped.  Never mind paying the upfront cash back, what advisor is going
to ask their clients to sign transfer forms a few months after having
converted.  So now the question becomes how well are they going to treat
you.  That is a hit or miss.  My
first three clients asked me get them out of their indy BD situation after a
year.  One was the largest ML producer in Arizona. 
Opening up you own RIA firm is fairly straight forward and you can do that with
ZERO assets.  BD is a different situation.  BDs are harder to
setup.  For adivisors that want a BD relationship I have a series of BDs
that I will refer clients.  The mistake most make in this model is the
advisor will create a relationship with a BD and the BD wants a percentage of
the RIA business.  So now as an advisor you are thinking, what is the point
why don't I just join an indy BD.  Well I have relationships where the BD
does NOT take a percentage of the RIA business.  So now you as the
adivisor own your own firm making a 100% of the revenue (no markups on the
products) and about 80-90% on the BD business.  And you NEVER have to ask
your clients to sign another account transfer form!!!



Unless you like mistreating yourself, you are in complete control and everyone
else works for you.  So think about it... everyone is your vendor!! That
is the way it should be... these are your clients, your assets, so why should
it be in another person's control.



Good Luck.

ash

www.FAfreedom.com

[email protected]

609-945-7100  x 101 <>

Mar 29, 2009 12:04 pm

Redpen:

Should have answered you question also in my other reply...

I am guessing you will need to run all your money via Finet, RIA and BD.  For that they will charge you 28% of your revenue!!  That is crazy.  If you open your own shop, you can go to a Schwab or TD and will be charged a small trasaction fee.  For your managed money they will start at 20 bps for trading. I have relationships with BDs where they will payout 80-90% also with me the BDs will not charge any fees from your RIA business.  Getting your business to work where you are making money is not hard.  It is just that most will not give you all the information you need to make good decitions.  Also note I AM NOT A RECRUITER!!  I just believe in the independent model where the advisor owns their own shop.

Send me a PM if you are interseted in learning more or call me as there are normally a lot of questions. 

Good Luck.

ash
[email protected]
www.FAfreedom.com
609-945-7100 x 101 

Mar 29, 2009 1:18 pm
Ash:

  Also note I AM NOT A RECRUITER!!  I just believe in the independent model where the advisor owns their own shop.

ash
[email protected]
www.FAfreedom.com
609-945-7100 x 101 

 
First, this is a disingenuous statement at best. You clearly have an agenda and an economic incentive for advisors to accept your view of indendepence. It is insulting to suggest otherwise i.e.  that you are only acting out of a sense of goodwill for the greater good of advisors.
 
Second, you are a spammer. We get you have something to sell and see your website address prominently so trust all who are interested will visit your website. You do not need to post a comment on every thread desperately hoping to get some business.
Mar 29, 2009 6:59 pm
Northfield:
Ash:

  Also note I AM NOT A RECRUITER!!  I just believe in the independent model where the advisor owns their own shop.

ash
[email protected]
www.FAfreedom.com
609-945-7100 x 101 

 
First, this is a disingenuous statement at best. You clearly have an agenda and an economic incentive for advisors to accept your view of indendepence. It is insulting to suggest otherwise i.e.  that you are only acting out of a sense of goodwill for the greater good of advisors.
 
Second, you are a spammer. We get you have something to sell and see your website address prominently so trust all who are interested will visit your website. You do not need to post a comment on every thread desperately hoping to get some business.



I appreciate the feedback, but I do not understand why you would have such a harsh reaction to an opinion.  Also to simply say I have an agenda without any foundation does not really help the forum, but just confuses everyone.  So let me try to help a little.

Your spammer comment:  I do place my info on the bottom of the page so people know where the opinions are coming from.  Unlike many who are recruiters or indy firms, I am trying to disclose.  I think I am answering specific questions so I am not sure how that is spamming.  If I have different information from the norm, do you not think it should be shared?

As far as my opinion is concerned, it only comes from advisors.  Everyone I have helped with this model is still happy even with the market downturn.  Ultimately it is about the number... if the numbers do not work the model will not.  Lastly I offer advisors speak to my clinets before taking the leap. 

You obviously like Finet and I am glad that works for you.  Good Luck.

ash
[email protected]
www.FAfreedom.com
609-945-7100 x 101

Mar 30, 2009 8:07 pm

Ash,

FYI posting your phone number, email and web addresses
does not make you a spammer.  Doing the whole copy/paste thing about
the "top ML guy in AZ" and how "my
clinets (it's actually spelled "clients" btw) will never have to sign another transfer
form again" in every single thread makes you a spammer.



Also, if you think that posting things such as, "... I offer advisors
speak to my clinets before taking the leap..." makes me think of you as
a competent professional you are sadly mistaken.  Read what you have typed (or more likely copied and pasted) before you hit the POST button.



FWIW I went to fafreedom.com and holy #$%@ there are typos on the
freaking HOME PAGE as well as all over the website.  Your web page will very often be the first (and in your case, because it so bad, last) impression you make.  I'm sorry, but I'm a perfectionist when it comes to business image.  Typos do not fly in my world.  Typos mean carelessness.  Carelessness means mistakes.  Mistakes mean lost clients and lost revenue.

Ash, I have a very simple question for you.  Do your emails and website represent the level of professionalism,
competence and attention to detail I should expect from you and your
firm in helping me with the life changing event of moving my
livelihood from wire to "independences" as your website calls it in the FAQ section?



If the answer to that question is YES then my answer to you is thanks but no thanks.


BF

Mar 30, 2009 8:13 pm

Thank you for the feedback.... Good points

ash
www.FAfreedom.com

Mar 31, 2009 1:47 pm

Finet is a POS.

Mar 31, 2009 3:51 pm
training wheels:

Finet is a POS.

 
Well, there's a detailed examination we can all learn from. Thanks loads.
Mar 31, 2009 7:50 pm

Training Wheels - I actually appreciate your input (good, bad or ugly) re: Finet as I am currently on the path to Finet from PCG.

 
If you were to do it all over again, would you suggest I get out of Wachovia Securities and transfer laterally to Finet, or take the chance of ACATing in this environment to another Indy shop?
 
Thanks in advance.
Apr 2, 2009 12:04 am
Conrad Dobler:
training wheels:

Finet is a POS.

 
Well, there's a detailed examination we can all learn from. Thanks loads.
 
I would be happy to answer any specific questions you may have.
Apr 2, 2009 12:10 am
BlackKnight:

Training Wheels - I actually appreciate your input (good, bad or ugly) re: Finet as I am currently on the path to Finet from PCG.

 
If you were to do it all over again, would you suggest I get out of Wachovia Securities and transfer laterally to Finet, or take the chance of ACATing in this environment to another Indy shop?
 
Thanks in advance.
 
As a platform, Finet is a logical step toward independence from PCG. That being said, after being with them several years now, I can tell you that the level of service has dropped dramatically. IMO, Finet is a stepping stone to more independent options in the future. It will take a few years for you to change to the mentality of "business owner" from "employee" and then you will be ready to go RIA. I truly believe that going full RIA is the future of this business. There has been a rumor for 2 years that Finet has been piloting a hybrid-RIA model similar to LPL et al, but no word on when/if it will be available. If they don;t get this they are toast. Then there is the whole Wells Fargo issue, won't go there now. Let me know if you have specific questions and I will help you out.