Thinking about transferring
Been thinking about moving indy for the last 6 months and finally took the time to research everything. I'm looking at LPL & RJ after talking to a bunch of small & big BD but would like some feedback from a few that have done the move. I will be transferring with another advisor and we want to plug and play the first year and then possibly transition to our own office. I am getting my 24 so I don't have to pay someone 5-10% to be my OSJ. We write a combined 400k, 25% annual planning fees, 25% percentage wrap fees, 20% annuities, 10% insurance, and 10% mutual funds. As it stands we are being offered 90-93% and were told it would be roughly 15% in expenses (office/rent...) and 15% in fees/technology. Does this sound correct? Also were offered a transition bonus but not given numbers. Anyone know the average? Thanks for any advice and help!
No but it was an estimate based on what our current production was. It won't go up with production.
A similar ton of bricks fell on me, but it was right after joining IDS in 1993. After 6 months or so, I saw the movie "The Firm". I had the same empty feeling as Tom Cruise's Mitch McDeer when he realized his law firm was the mob.
Crazy stuff, I left and you can too!
You can find B/D's in that payout range without having to get the S24 and spend time doing OSJ Compliance Work. I would continue looking if LPL and RJ can't offer you the same because don't discount the time factor involved in compliance work as opposed to more revenue generating activities. Best wishes to you and your partner!
Looks like you have a great business model. 40 plans a year at 2500, 8mm in wrap, sell annuities for 1.6mm a year, 400k in insurance and a million a year in funds.
I would pay someone the 5-10% for OSJ and I have my 24. It can be a selling point.... Mr. Customer someone else, a third party company, namely xxx reviews and supervises everything I do from a compliance standpoint. It could land you more sales. Besides the worry of is someone else in the firm going to make a silly mistake and you get dinged for failure to supervise. Just my personal opinion.
The ballpark for costs is 2k a month, even the Jones model benches it at 3k a month and that is with the buildout.
Not sure on the upfront, but the rule that is batted around is for you to have 6-12 months of cash in the bank and to me that would mean you do not need the transition money.
I am not Indy, but doing my homework too and hope this helps.
same boat as you. amp p1 midwest. Teamed up with several others and will be the osj to get a higher payout. Like you checked out rj and lpl and a slew of others. Ended up selecting SII. Completely understand your frustration. Good luck with your move and f*** the leaders that are destroying ths company. I can see the golden parachutes pulled in the next couple of years. Feel bad for formner h&r folks. They are in no mans land and will begin to leave as soon as the bonuses begin to vest. The amp platform cant support their needs. The acquisition is a huge mystery! How do you combine planners with brokers and not ruin the brand?