Starting new at LPL... would like advice

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Nov 26, 2014 7:29 pm

Hello- Earlier on in the year I was planning on joining a friend of mine at LPL, and starting from scratch to build my own book of relationships.  I felt like I needed more runway capital so I've saved and saved and saved.  Here are the facts?


1.  Zero clients, but I would have a million dollar producer as a mentor. 


2.  Work out of the office rent free and access to assistant.  


3.  90% payout. 


4.  I have 7 years of investment experience.  3 as an advisor and 4 as a wholesaler.  


5.  I have two small children and a stay at home wife who depend on me. 


6.  Monthly expenses are 4300 dollars



I've managed to save up two years of living expenses, which I think is adequate.  However I would like to know from you experienced advisors if this is enough time to build a book of business that would sustain our lifestyle.  Thank you.  

Dec 16, 2014 4:52 pm

First question would be, "How did you do during the three years you worked as an advisor?" That should help you answer the question.

Can you go cash flow positive within two years? Of course, but the man in the mirror knows the true answer better than some forum post like this one. You are getting a sweet deal from the million dollar producer. Why are they being so generous and for how long? It might be even sweeter for both of you if you take over the C book of business and split the revenue. That will help to make sure that you succeed and hopefully one day turn over your C book to another new advisor in the branch.

Mar 10, 2015 11:29 am

Curious to see how this turned out so I am posting just to have it go to the top.

P.S. the C book idea is by far the best for all parties involved.

Apr 25, 2015 9:46 pm

The way I calculate things, you need to get to about $8 Million AUM in two years to meet your expenses. Break that down, that is 400k a month in new money. I would do anything over $250k in advisory with LPL (admin fee of .125 shaves off the 90%) payout, and anything under that I would do C-share to get a pop and then look to convert it as it grows. Can you do it? Sure you can. Will you? I'd be pushing hard on the gas from Day1 and see if you can get some traction and maybe land a big fish right away. I landed a 1.7 Mil account with my first seminar after going into production. It has paid me 1% for all these many years and I would do anything for this great couple. The people are out there and need help. You aren't a newbie, but rather a seasoned investment pro who has the time and energy to provide personal assistance. A 500k client that wouldn't get any time from your million dollar producer will be treated like a king by you. I'm averaging $1Mil in new assets a month, and most of the advisors I know just talk about prospecting ... even the big producers. Call, talk to, cajole, play golf with, visit the eye doc (if he might be a potential prospect) and calculate how close you are to your goal as you add each new client.

Feb 10, 2016 3:26 pm

you are charging 1% on a 1.7 MM portfolio? I sure hope you would do anything for them.