Going Indy have a few ?'s

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Jan 6, 2009 8:43 pm

Still deciding on which firm.  I am not a big producer T12-456k 6 years in the business.  I am looking for advice from others.  Questions I have


1.  Is the LPL affiliation fee par for the course in the Indy world?  Was told it's $500 a month that includes E/O.  Do other firms charge a fee to be afiliated?


2.  Health insurance on average what's the cost for a family?


3.  Are commissions paid monthly or weekly?
 
4.  Is is smart to be your own OSJ series 24 or pay 5-10 bp for someone else? 
 
Thanks
Jan 6, 2009 10:08 pm

Great info thank you..

 
What do you know of ING Financial Partners?  Do you know what the payout starts at?  Thanks
Jan 6, 2009 11:43 pm

LPL's affiliation fee is $125 per month.  Technology varies from $50-$200+ per month, E&O is $512 per quarter.

Jan 7, 2009 10:36 am

I'd suggest a hard look at Raymond James.  I don't work there and have no vested interest, but based on your numbers and questions, it's worth considering. 

Jan 7, 2009 12:29 pm
iceco1d:
rep_rep:

Great info thank you..

 
What do you know of ING Financial Partners?  Do you know what the payout starts at?  Thanks
 
I have some info on them...their payout tops out @ 90% I believe; your payout/override is determined by your OSJ, if you have one. 
 
They have some odd fees that are skewed towards bigger producers.  For example, in their fee platform, there's a "per account" flat fee that YOU pay.  For people with under, say, $10MM in the platform, it's like $130 per year, per account!  But if you have like $60MM in the program, it's free or darn close to it!
 
Another fee, the fee-based "admin fee" that I can't F-ING stand, declines based on your AUM.  With low AUM, it's like 30 bps.  With higher AUM, it drops to like 8 bps.
 
Seems like a robust platform though - pretty good actually if you are a decent producers (i'm LOS 1.5 - so it's safe to say, I'm not yet).
 
What does LPL charge for the Fee Platform?
 
My b/d charges $125 per year/per account, but nothing else...
Jan 7, 2009 12:31 pm
iceco1d:
rep_rep:

Great info thank you..

 
What do you know of ING Financial Partners?  Do you know what the payout starts at?  Thanks
 
I have some info on them...their payout tops out @ 90% I believe; your payout/override is determined by your OSJ, if you have one. 
 
They have some odd fees that are skewed towards bigger producers.  For example, in their fee platform, there's a "per account" flat fee that YOU pay.  For people with under, say, $10MM in the platform, it's like $130 per year, per account!  But if you have like $60MM in the program, it's free or darn close to it!
 
Another fee, the fee-based "admin fee" that I can't F-ING stand, declines based on your AUM.  With low AUM, it's like 30 bps.  With higher AUM, it drops to like 8 bps.
 
Seems like a robust platform though - pretty good actually if you are a decent producers (i'm LOS 1.5 - so it's safe to say, I'm not yet).
 
What does LPL charge for the Fee Platform?
 
My b/d charges $125 per year/per account, but nothing else...
Jan 7, 2009 4:34 pm

I know that I was just curious what other B/Ds were charging the advisor for fee platforms

Jan 16, 2009 10:02 am

I would take a closer look at Raymond James, Commonwealth, and Cantella.  Raymond James is emerging as the big winner of the exodus from the wirehouses.  They must be doing something right.  LPL is also doing quite well, but I would be concerned about being a pawn in their desire to be the biggest and their plans to go public as soon as the market rebounds.  Commonwealth has a great reputation for service and is a good match for financial planner type personalities.  Cantella is smaller, but it's mostly wirehouse reps and they clear through Raymond James along with Pershing, JP Morgan and National Financial.  They have a 90% payout without achieving any grids and minimal fixed monthly costs. 

 
Regarding your questions, $500 is about average.  Independent firms are turning monthly fees into profit centers to cover fixed expenses.  E&O ranges about $100 to $250 per month, tech fees seem to be about $50 to $300, affiliation fees can be another $50 to $100.  Also look out for compliance visits; some firms charge the rep, others don't.  Best thing to do is to take your book of businesss, plug it into the firm's formulas and see what your paycheck looks like after all expenses.  A nice gage on health insurance is to go to www.wealthai.com, which is a group that offers wealth management assistance and employee benefits for independents.  A chart of health care costs from Blue Cross is posted on their web site and everyone that joins is guaranteed coverage.  Commission payments vary by firm.  Some firms that pay monthly also provide pay whenever a rep needs cash flow. You should definitely be your own OSJ.  You have the production.  You will probably not be required to do too much additional work and you will be able to run your business more efficiently and profitably.  Do you want someone else reviewing your letters?  Do you want to put your OSJ's address on every marketing piece?  Take the series 24 test and enjoy the flexibility to build your business the way you think it should be run, not some else.
 
Best of luck to you.
Jan 16, 2009 1:08 pm
rep_rep:

Still deciding on which firm.  I am not a big producer T12-456k 6 years in the business.  I am looking for advice from others.  Questions I have


1.  Is the LPL affiliation fee par for the course in the Indy world?  Was told it's $500 a month that includes E/O.  Do other firms charge a fee to be afiliated?


2.  Health insurance on average what's the cost for a family?


3.  Are commissions paid monthly or weekly?
 
4.  Is is smart to be your own OSJ series 24 or pay 5-10 bp for someone else? 
 
Thanks
 
Some of these have already been answered, but I'll give you my take from someone on the LPL platform...
 
1.  LPL's fee is $125/month.  Beyond that, tech platform (Branchnet) access is $75/month, Performance reports (portfolio manager) is $75/month, Portfolio Review tool is $35/month, for research, I use S&P($45/month), Zacks ($30/month), Morningstar ($159/year), and InvestmentView ($600+/year).  My E&O runs $557.50/quarter (I pay extra to run insurance through another platform), and bonding for me and my assistant is $20/month.  I just renewed my Medallion stamp ($200/year).  Aside from ticket charges, you'll pay a small amount of SIPC/FINRA fees, dependent upon your trade volume, but it's not enough for me to really notice.  Multiple states can get expensive...I just paid nearly $1,000 in various state and branch fees last month.
 
2.  Health insurance is costly.  For a family, it probably runs the spectrum from $300-$1,500/month, depending upon what kind of coverage you are after, your age and your health history.  I buy as cheap as I can and pay $380/month, but I also face a $1,000 deductible for every health event I have (not just  once a year).
 
3.  Commissions are paid twice a month at LPL...once arounf the 14th or 15th, and once at the end of the month.  Fee-based accounts are charged quarterly in advance and paid out each month on the mid-month run (and yes, I realize that LPL gets to use the $$$ while they parcel it out to me monthly).
 
4.  If you can find an OSJ for 5%, I'd let 'em do it.  I do my own, but if LPL were my OSJ, it would cost me 15%.  5% is dirt cheap...10% is probably more realistic.  I OSJ for a friend at 7.5% and I'll tell you without hesitation, I'll turn him loose anytime he's ready.  Being your own OSJ is one thing, but it's a whole new pain in the ass doing it for someone else.
 
Good luck with your transition.
Jan 16, 2009 1:49 pm

Good info, Indyone, thanks.

 
Are you guys allowed to run insurance (life, health, disability, etc.) direct as an OBA or must you run it through a desk at LPL?
Jan 16, 2009 1:51 pm

You can run it direct.  I run mine through Capitas.

Jan 19, 2009 12:24 pm
Indyone:
rep_rep:

Still deciding on which firm.  I am not a big producer T12-456k 6 years in the business.  I am looking for advice from others.  Questions I have


1.  Is the LPL affiliation fee par for the course in the Indy world?  Was told it's $500 a month that includes E/O.  Do other firms charge a fee to be afiliated?


2.  Health insurance on average what's the cost for a family?


3.  Are commissions paid monthly or weekly?
 
4.  Is is smart to be your own OSJ series 24 or pay 5-10 bp for someone else? 
 
Thanks
 
Some of these have already been answered, but I'll give you my take from someone on the LPL platform...
 
1.  LPL's fee is $125/month.  Beyond that, tech platform (Branchnet) access is $75/month, Performance reports (portfolio manager) is $75/month, Portfolio Review tool is $35/month, for research, I use S&P($45/month), Zacks ($30/month), Morningstar ($159/year), and InvestmentView ($600+/year).  My E&O runs $557.50/quarter (I pay extra to run insurance through another platform), and bonding for me and my assistant is $20/month.  I just renewed my Medallion stamp ($200/year).  Aside from ticket charges, you'll pay a small amount of SIPC/FINRA fees, dependent upon your trade volume, but it's not enough for me to really notice.  Multiple states can get expensive...I just paid nearly $1,000 in various state and branch fees last month.
 
2.  Health insurance is costly.  For a family, it probably runs the spectrum from $300-$1,500/month, depending upon what kind of coverage you are after, your age and your health history.  I buy as cheap as I can and pay $380/month, but I also face a $1,000 deductible for every health event I have (not just  once a year).
 
3.  Commissions are paid twice a month at LPL...once arounf the 14th or 15th, and once at the end of the month.  Fee-based accounts are charged quarterly in advance and paid out each month on the mid-month run (and yes, I realize that LPL gets to use the $$$ while they parcel it out to me monthly).
 
4.  If you can find an OSJ for 5%, I'd let 'em do it.  I do my own, but if LPL were my OSJ, it would cost me 15%.  5% is dirt cheap...10% is probably more realistic.  I OSJ for a friend at 7.5% and I'll tell you without hesitation, I'll turn him loose anytime he's ready.  Being your own OSJ is one thing, but it's a whole new pain in the ass doing it for someone else.
 
Good luck with your transition.
 
My friend just met with LPL, and they said that morningstar, portfolio review  was included in the $125/month, or at it was at least inferred that it was...
 
Also he mentioned that LPL is charging 20bps on all feebased accts...
 
Can anyone clarify or verify Indy's costs at LPL?
 
Jan 19, 2009 2:10 pm
chief123:
Indyone:
rep_rep:

Still deciding on which firm.  I am not a big producer T12-456k 6 years in the business.  I am looking for advice from others.  Questions I have


1.  Is the LPL affiliation fee par for the course in the Indy world?  Was told it's $500 a month that includes E/O.  Do other firms charge a fee to be afiliated?


2.  Health insurance on average what's the cost for a family?

3.  Are commissions paid monthly or weekly?
 
4.  Is is smart to be your own OSJ series 24 or pay 5-10 bp for someone else? 
 
Thanks
 
Some of these have already been answered, but I'll give you my take from someone on the LPL platform...
 
1.  LPL's fee is $125/month.  Beyond that, tech platform (Branchnet) access is $75/month, Performance reports (portfolio manager) is $75/month, Portfolio Review tool is $35/month, for research, I use S&P($45/month), Zacks ($30/month), Morningstar ($159/year), and InvestmentView ($600+/year).  My E&O runs $557.50/quarter (I pay extra to run insurance through another platform), and bonding for me and my assistant is $20/month.  I just renewed my Medallion stamp ($200/year).  Aside from ticket charges, you'll pay a small amount of SIPC/FINRA fees, dependent upon your trade volume, but it's not enough for me to really notice.  Multiple states can get expensive...I just paid nearly $1,000 in various state and branch fees last month.
 
2.  Health insurance is costly.  For a family, it probably runs the spectrum from $300-$1,500/month, depending upon what kind of coverage you are after, your age and your health history.  I buy as cheap as I can and pay $380/month, but I also face a $1,000 deductible for every health event I have (not just  once a year).
 
3.  Commissions are paid twice a month at LPL...once arounf the 14th or 15th, and once at the end of the month.  Fee-based accounts are charged quarterly in advance and paid out each month on the mid-month run (and yes, I realize that LPL gets to use the $$$ while they parcel it out to me monthly).
 
4.  If you can find an OSJ for 5%, I'd let 'em do it.  I do my own, but if LPL were my OSJ, it would cost me 15%.  5% is dirt cheap...10% is probably more realistic.  I OSJ for a friend at 7.5% and I'll tell you without hesitation, I'll turn him loose anytime he's ready.  Being your own OSJ is one thing, but it's a whole new pain in the ass doing it for someone else.
 
Good luck with your transition.
 
My friend just met with LPL, and they said that morningstar, portfolio review  was included in the $125/month, or at it was at least inferred that it was...
 
Also he mentioned that LPL is charging 20bps on all feebased accts...
 
Can anyone clarify or verify Indy's costs at LPL?
 



Give more weight to Indy than your friend...Indy knows what he's talking about, and the costs he has spelled out in item # 1 are accurate.  Morningstar and Portfolio Review Tool are NOT included in the $125/month to my recollection.

"Retention" on fee based accounts in the SAM platform starts at 20 basis points and goes DOWN for larger accounts.

Jan 19, 2009 3:35 pm

That's what I figured, I just wasn't sure if LPL switches certain costs around based on area and or production.

 
It seemed to good to be true, that Morningstar/Portfolio Review/etc.. were included in that $125..
Jan 19, 2009 4:45 pm

Commonwealth is another outstanding firm, with more of a customized feel for the FA.  LPL as you know have growing pains, home office issues, and one of the prior posts was correct that you may be a pawn in the bigger scheme of things as they're on their way desiring to be a publically traded company.