Starting out as Indy?
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May 16, 2008 3:31 pm
I originally thought that I would go what I would call the traditional route of starting out (mid-life career change) by siging on with EDJ, Merrill or another brokerage/wirehouse with the thought that this was the correct route to go due to the fact that I really think the training programs would be beneficial to me. That and the fact that they would offer a salary to get by on the first year or two.
Recently I approached a couple of successful financial advisors I had heard about through an acquaintance at an independent B/D. The potential for a mentor type relationship with an existing advisor at this particual B/D holds allure due to the fact that being completely independent is something I would probably contemplate down the line. What makes it potentially possible is that fact that my existing job is going away in the near future (yeah!) and I will be walking out with a severance package that pays me for almost a year. Am I crazy to think about starting out in the business as an Indy? For anyone that has started in this channel can you tell me what it was like? Thanks.Ice, I appreciate the insight.
I would like to think that the AUM/fee based approach is the end game, but mix in commision based where appropriate. For me, having been involved in finance/investments but not the sales, my one concern is becoming a successful salesman. I believe that will not be an issue but it is something I will need to focus on. My network of initial prospects is something I am currently focusing on (small business owners; corproate execs). Just curious...what type of client and services/products are you (mainly) reaching out to? The severance package will help me greatly (stay at home wife for now, a couple of young kids) together with ample savings and, as you, only a small mortgage for debt. Thanks again.Wow…you went above and beyond with your advice. Much to consider.
I have spoken with both EDJ and Merrill, partly for the reasons you mention (i.e. training, salary). Thankfully we have always saved around 20% of our income over the last 20 years so financially we are in good shape. I think if I stayed in my current job two things would have happened: (a) I would have been able to retire in 7 years even though the kiddies would just be entering college and (b) I would have been so miserable that my wife would have been the only one around to enjoy the money.