What Indy Firms write a check?

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Nov 27, 2008 3:52 pm

I am doing well at a regional just tired of the corporate red tape.  My plan was always to get established and go independent.  I was about to do this on my own but heard FINET offers a transition check.  I have read about their short-comings.  I just wondered who else will write a check to move to their platform?

 
 
Nov 27, 2008 6:47 pm

Most independents offer some form of transition assistance ranging from forgiveable upfront money to some sort of loan structure or a combination thereof. It really depends on what you want and are willing to give up. Some of the higher packages have qualifiers such as a time commitment (5 years) or lower payout (for a set period) while lower upfronts have no or minimal strings attached. I have seen some independents pay big upfront but get it in return on the backend through a lower payout and higher fees (ticket charges, technology and affiliation fees, etc.) so perform your due diligence and run the numbers. 

Nov 27, 2008 8:57 pm

Any firm names to look at?

 
 
Nov 28, 2008 10:53 am

Look for the firms that are going to complement and enhance your strengths, those that accomodate what you are trying to achieve. Your business model is unique to you, your visions, dreams, and goals should be met with a b/d that supports you in that endeavor. There are so many variables that it would be an injustice for me to throw out any names unless I know what you are trying to do. It is analogous to "Here, I have 200k, how should I invest it?" without you even knowing anything about me. 

Nov 28, 2008 10:57 am

I would not worry about the upfront money and instead focus on the payout, because that will be long term..

Nov 28, 2008 2:52 pm

50% SMA

 
25% A, C share
 
25% - wrap discretionary, ETF, stock and Bond
 
Focus $2-10 million AUM per client, trying to work with fewer clients and have several $20,000 per year fee clients.
 
 
Nov 29, 2008 12:11 pm

That tells me nothing about your vision of how you want to grow your business and/or what your basic needs (investment platform, technology, marketing, payout, compliance, etc.) are, which are vital components to making an informed decision.


If you are truly intent on making your new b/d decision off of some input from a message board or are looking to make a move just for a check, you are destined for disaster. You have a lot to learn and may be better off situated at another wire that will write one or simply staying put.  
 
I am not trying to be an a$$ here, but this is a no win situation for me and really a waste of our time.
 
Speaking of OUR TIME:
http://www.youtube.com/watch?v=jQ7kar7JYFA&feature=related
Nov 29, 2008 2:29 pm
Mucho de Tejas:

Look for the firms that are going to complement and enhance your strengths, those that accomodate what you are trying to achieve. Your business model is unique to you, your visions, dreams, and goals should be met with a b/d that supports you in that endeavor. There are so many variables that it would be an injustice for me to throw out any names unless I know what you are trying to do. It is analogous to "Here, I have 200k, how should I invest it?" without you even knowing anything about me. 

 
American Funds.
 
Next question?
Nov 29, 2008 2:30 pm
bullbearbroker:

50% SMA

 
25% A, C share
 
25% - wrap discretionary, ETF, stock and Bond
 
Focus $2-10 million AUM per client, trying to work with fewer clients and have several $20,000 per year fee clients.
 
 
 
Oh really. You too, huh?
 
I'm curious as to how you plan on delivering $20,000 worth of value to those clients.
 
I'm really struggling with the concept of gathering assets, putting them into managed money and then charging the client 1-1.5-2% annually in addition to the fees that will be charged by the folks who are actually managing the money.
 
It's absolutely criminal.
 
Name another profession where people who can't spell salary or competitive are making multiple hundreds of thousands of dollars per year. It preposterous.
 
 
 
 
Nov 29, 2008 3:02 pm

Borker:


If the SMA fee of 1.5% covers everyone involved how is that criminal?  Are you borking or getting borked?

Nov 30, 2008 9:14 am

Nov 30, 2008 6:30 pm

Second the , and I'll add just about any professional sport or acting/TV career to that list.

 
Borker, you're making the assumption that fee-based management is as simple as picking a few good mutual funds and sending a Christmas card each year.  If that's all an advisor does for his/her fee, the client will make an issue of the fee the first time the market drops a few points, and yes, I'd agree that the advisor is not earning his/her fee.
 
My clients use me as a go-to for just about any financial decision they make, and right now, I'm doing a lot of tax-loss harvesting while keeping clients in the market by swapping to similar (but not identical) investments, and my clients are paying zero commissions for the privilege.  That's just one example of how you add value.  If you can't think of any way to add value, then no...you should not use the fee-based model.
Nov 30, 2008 7:24 pm
Indyone:

Second the , and I'll add just about any professional sport or acting/TV career to that list.

 
Borker, you're making the assumption that fee-based management is as simple as picking a few good mutual funds and sending a Christmas card each year.  If that's all an advisor does for his/her fee, the client will make an issue of the fee the first time the market drops a few points, and yes, I'd agree that the advisor is not earning his/her fee.
 
My clients use me as a go-to for just about any financial decision they make, and right now, I'm doing a lot of tax-loss harvesting while keeping clients in the market by swapping to similar (but not identical) investments, and my clients are paying zero commissions for the privilege.  That's just one example of how you add value.  If you can't think of any way to add value, then no...you should not use the fee-based model.




You, ice, B24 and anonymous are excluded entirely from my comments. 


You guys are in a completely different league.
Nov 30, 2008 7:32 pm
Indyone:

Second the , and I'll add just about any professional sport or acting/TV career to that list.

 
Borker, you're making the assumption that fee-based management is as simple as picking a few good mutual funds and sending a Christmas card each year.  If that's all an advisor does for his/her fee, the client will make an issue of the fee the first time the market drops a few points, and yes, I'd agree that the advisor is not earning his/her fee.
 
My clients use me as a go-to for just about any financial decision they make, and right now, I'm doing a lot of tax-loss harvesting while keeping clients in the market by swapping to similar (but not identical) investments, and my clients are paying zero commissions for the privilege.  That's just one example of how you add value.  If you can't think of any way to add value, then no...you should not use the fee-based model.
 
Well said Joe, although I am hurt I didn't make the list.
Nov 30, 2008 7:36 pm
Primo:
Indyone:

Second the , and I'll add just about any professional sport or acting/TV career to that list.

 
Borker, you're making the assumption that fee-based management is as simple as picking a few good mutual funds and sending a Christmas card each year.  If that's all an advisor does for his/her fee, the client will make an issue of the fee the first time the market drops a few points, and yes, I'd agree that the advisor is not earning his/her fee.
 
My clients use me as a go-to for just about any financial decision they make, and right now, I'm doing a lot of tax-loss harvesting while keeping clients in the market by swapping to similar (but not identical) investments, and my clients are paying zero commissions for the privilege.  That's just one example of how you add value.  If you can't think of any way to add value, then no...you should not use the fee-based model.

Well said Joe, although I am hurt I didn't make the list.

 

I knew I'd be remiss if I made that statement. How could I forget you and Morphius?


And snaggletooth is evolving into a very competent advisor right before our eyes.
Feb 21, 2009 9:53 pm

I've considered LPL, RJFS and FiNet. I understand others might disagree, but my partners and I want a name our clients will be comfortable moving to. For better or worse, that eliminates LPL. 

 
We've reviewed the various payout schedules and the pros and cons (and we've decided against a pure RIA model) and feel there's little difference between RJFS and FiNet for our particular business model (1.2M T12, 65M AUM) . We're wondering what others have seen in transition money. FiNet started at 50% (before we gave them hard and fast asset/production numbers) and  FiNet team we've spoken to with a little more than half our production claim they got 70% T12. It looks like the deals vary based on how hardball you get.
 
Now, to my question, can anyone offer insight as to what RJFS will REALLY offer in transition money?
Feb 21, 2009 11:16 pm

Why do you believe your clients would not be comfortable with LPL?  Just wondering -- I am exploring options as well.  Just started.

 
You experienced guys - any advice for me at post: "Need Indy Guru Advice"?
 
Anyone know of a grid out there that compares the indy firms on comp, products, services, strengths, weaknesses, etc?
 
Thanks for your help...
Feb 22, 2009 10:16 am

I would advise that you let someone else narrow down your BD search for you and then focus on the smaller list. There are consulting firms out there that can research these firms better and quicker than we can. I have worked with one before. If you'd like their contact info, PM me.

Feb 22, 2009 10:36 am

Troll?

Feb 22, 2009 10:58 am

Yeah he is.. everyone of his posts that I have seen involves "PM me for contact info"....

 
Buy an ad, Call advisors... stop being a punk..