DT,

If you never signed any non-compete/non-solicit, then yes, I'd say you are OK, but if you ever did, I'd listen to the advice you've been given and have the agreement reviewed by a good labor attorney...it will be money well spent.

About the only thing I'm pretty confident about is that my newspaper ads don't violate a non-solicit.  They DO violate my non-compete, but that's something that can't be helped (I have to make a living, man!).  You'll not get much advice from any indy firm counsel until you commit to the firm.  At that point, they can be pretty helpful for you.

Good luck...

Indy

Hello there. I've been reading for a while (lurking) but never posted. I have been at 2 major wirehouses forever and am thinking of indy. I heard from one old colleage that LPL offered a trasition package. I have never heard that before from any indy. channel (except the Wachovia "psudo" indy).  Any info is greatly appreciated.

[quote=OldTimer]

Hello there. I've been reading for a while (lurking) but never posted. I have been at 2 major wirehouses forever and am thinking of indy. I heard from one old colleage that LPL offered a trasition package. I have never heard that before from any indy. channel (except the Wachovia "psudo" indy).  Any info is greatly appreciated.

[/quote]

Old Timer,

From my due diligence, I can tell you that both Raymond James and LPL offer transition packages, although they are modest in comparison to those offered to captive brokers.  Both offer interest-free loans in the vicinity of 10% of trailing 12.  LPL is interest-free for six months, RJ for 90 days.  In addition, RJ offered me 3% of trailing 12 as a bonus and LPL offered 2% blotter credit.  There are some small extras beyond that such as covering the training materials for the 24 and the first order of cards, letterhead, etc.  Some legal assistance may also be available if you get in a non-compete fight, but I can tell you that they don't promise this.

Bottom line is, the transition package is relatively modest, but considering the fact that you can move your book anytime as an independent, I'm frankly still surprised that anything is offered.

I'm new as an indy, but I can tell you that from my standpoint, I feel like I've been paroled.  If I were in your shoes, I'd visit (at their expense) both of these indy firms and see what they had to offer.  My guess is that if you make the trips, it won't be long until you go indy with one firm or the other.  If you go back to the beginning of this thread and read it forward, there's a lot of good information.  Good luck with your search!

[quote=Indyone][quote=OldTimer]

Hello there. I've been reading for a while (lurking) but never posted. I have been at 2 major wirehouses forever and am thinking of indy. I heard from one old colleage that LPL offered a trasition package. I have never heard that before from any indy. channel (except the Wachovia "psudo" indy).  Any info is greatly appreciated.

[/quote]

Old Timer,

From my due diligence, I can tell you that both Raymond James and LPL offer transition packages, although they are modest in comparison to those offered to captive brokers.  Both offer interest-free loans in the vicinity of 10% of trailing 12.  LPL is interest-free for six months, RJ for 90 days.  In addition, RJ offered me 3% of trailing 12 as a bonus and LPL offered 2% blotter credit.  There are some small extras beyond that such as covering the training materials for the 24 and the first order of cards, letterhead, etc.  Some legal assistance may also be available if you get in a non-compete fight, but I can tell you that they don't promise this.

Bottom line is, the transition package is relatively modest, but considering the fact that you can move your book anytime as an independent, I'm frankly still surprised that anything is offered.

I'm new as an indy, but I can tell you that from my standpoint, I feel like I've been paroled.  If I were in your shoes, I'd visit (at their expense) both of these indy firms and see what they had to offer.  My guess is that if you make the trips, it won't be long until you go indy with one firm or the other.  If you go back to the beginning of this thread and read it forward, there's a lot of good information.  Good luck with your search!

[/quote]

Yep Yep....it is soooooo good to be FREE AT LAST!

To all that have been following this forum.  I have recently made the move to indy.  I choose LPL as my b/d over Raymond James.  Both firms are great and it was a tough call.  So for those of you looking for a clear cut answer you may not find it. 

Im started my firm six weeks ago.  LPL has delivered on everything they promised.  The transition has been smooth accept for the legal issues with my old firm.  LPL's legal counsel has been great through that process.  Without them i would have been in some serious trouble.  There tech is as advertised and there internal service is very good.  The only problem (minor) I have run into is that im having a hard time reaching my transition manager.  They are so busy with all the reps they are adding its hard to get the manager on the phone.  However in there defense they have been relatively quick returning phone calls. 

In a few weeks I will share more as my legal issue get resolved.  Good luck to all and trust me that INDY beats working for someone else.

Indytwo

[quote=indytwo]

To all that have been following this forum.  I have recently made the move to indy.  I choose LPL as my b/d over Raymond James.  Both firms are great and it was a tough call.  So for those of you looking for a clear cut answer you may not find it. 

Im started my firm six weeks ago.  LPL has delivered on everything they promised.  The transition has been smooth accept for the legal issues with my old firm.  LPL's legal counsel has been great through that process.  Without them i would have been in some serious trouble.  There tech is as advertised and there internal service is very good.  The only problem (minor) I have run into is that im having a hard time reaching my transition manager.  They are so busy with all the reps they are adding its hard to get the manager on the phone.  However in there defense they have been relatively quick returning phone calls. 

In a few weeks I will share more as my legal issue get resolved.  Good luck to all and trust me that INDY beats working for someone else.

Indytwo

[/quote]

It can be very tough getting through to the transition team members......but they are some sharp folks!

I agree.  Look at BOTH firms in detail.  Also look at your business and your clients.  I went with RJFS and am quite happy.  I visted both Tampa and San Diego and after doing my own due diligence and looking at my business the choice was an easy one.  I just spent a lot of time looking at the firms (Wachovia too) and asked many questions and read much of the material and talked to reps etc...

Good luck.

[quote=zacko]

I agree.  Look at BOTH firms in detail.  Also look at your business and your clients.  I went with RJFS and am quite happy.  I visted both Tampa and San Diego and after doing my own due diligence and looking at my business the choice was an easy one.  I just spent a lot of time looking at the firms (Wachovia too) and asked many questions and read much of the material and talked to reps etc...

Good luck.

[/quote]

I thought wachovia was pretty lame.  'psuedo-indy'

I agree.  They draw a few guys with a dog and pony show and promises for the future.  They also pay front money to the effect of 25% of your trailing 12 if memory serves.  All things equal–who would goto Wachovia?  They have to pay the front money to get any draw at all.

Thank You for all the imput. I don't know if you are very fee based Indy2, but if so, how is the LPL platform working for you. I.E. do you have the outside managers at your disposal?  What is the payback to the firm (at the wirehouse, I give back 45bp and everything else charged goes to my grid (which SUCKS).  Finally, are there "ticket charges" with regard to outside managed accounts?  Thanks for all your help. I am really starting to consider this.

OT, I'll not speak for I2, but in my opinion, LPL pays very well and has a very nice platform for fee-based.  PM me with an email address and I'll see if I can find a PDF that I can send you detailing all the SAM payout and charge info.  From what I can tell at this early stage in the game, LPL pays you 80%+ on the gross after ticket charges, but that varies a lot, depending on size and makeup of the account.  and yes, outside managers are available...

Whan I left, I was close to halp fee-based...my goal as an Indy is 85% in 5 years...

Ot

Pay close attention to the Pdf indy1 sends you.  I think it will open your eyes.  He covered the SAM accounts pretty well

Indy One & Two, OT is asking about separate account management, not the SAM account.  So, get him LPL’s stuff on your “Manager Select” program.

Duke, I noticed that, but referenced SAM due to a slip of the keyboard (probably since I am using SAM so much these days).

BTW, two weeks in and just over $8 mil in transit with about $5 mil in fee-based thus far.  I am busy, but loving it.  I'll keep you posted on my progress...

Another observation for anyone contemplating moving…do it in the summer!!!  If I waited to the end of the year and tried to do this in my busy season, I don’t think I’d survive!  It’s August and I’m swamped…and loving it!!!

Indy1,

Can't tell you how appreciative I am to have found this thread.  I'm standing on the ledge about to jump--heading to SD soon.

How much start-up capital is needed?  Rent here is approx 1,900/mo, f/t asst is 2,300/mo.  LPL showing me #'s next week, but I am chomping at the bit!

Thx for your insight--truly a blessing!

[quote=ExNIRSS]

Indy1,

Can't tell you how appreciative I am to have found this thread.  I'm standing on the ledge about to jump--heading to SD soon.

How much start-up capital is needed?  Rent here is approx 1,900/mo, f/t asst is 2,300/mo.  LPL showing me #'s next week, but I am chomping at the bit!

Thx for your insight--truly a blessing!

[/quote]

Get out while you can.  I think it will only become harder to leave a wire and keep your clients in the future.

I have been with LPL since May and am loving it.  Technology is great, and their culture is excellent!

[quote=ExNIRSS]

Indy1,

Can't tell you how appreciative I am to have found this thread.  I'm standing on the ledge about to jump--heading to SD soon.

How much start-up capital is needed?  Rent here is approx 1,900/mo, f/t asst is 2,300/mo.  LPL showing me #'s next week, but I am chomping at the bit!

Thx for your insight--truly a blessing!

[/quote]

ExNIRSS,

Glad to hear this is a useful thread.  It has truly been a journey with a lot of twists and turns, but is thus far, a very rewarding shift in my career.  As for start-up costs, I can give you some insight based on expenses I encountered when setting up.

As near as I can see, start-up costs are very, very low in this industry.  For one rep and an assistant, you are talking about $5,000 for state of the art computer equipment.  Oddly enough, with Dell's quality reputation, I ended up with a wide-screen Gateway notebook.  I liked it because the numeric keypad is built right into the keyboard and it's the only model I found like that.  If you enter a lot of numbers, this is VERY nice.  Nicer yet, I sprung for a docking station (or port replicator), a 19" thin screen monitor, and a wireless keyboard and mouse.  Now, my powerful notebook is a powerful desktop that can be unplugged and packed for taking with me in a few short seconds.

I spent some bucks on furniture, particularly in my office, due to wanting to present a class operation.  My office alone ran about $11,000, but is very classy.  I also put a medium-size flat-screen TV in the corner so I can run CNBC and Bloomberg on mute during the day (despite what we teach our clients, when they come in the office, they like to see how the market is doing and what the current price of a barrell of oil is) $200 should do it here...you don't need a big TV in your office.

Your rent is higher than my area, but your FT assistant number is in line.  I think renting is definitely the way to go initially.  The last headache you need when you're knee-deep in ACAT forms, is dealing with contractors and repairmen!  Down the road when things have settles down a bit, then maybe consider your own location, depending on cost/benefit.

Overall, my best guesstimate for your situation is that start-up could run $30,000-40,000 to get everything set up and cover overhead for three months or so.  My expenses were considerably less, but I had some cost-sharing advantages.  I'd be interested to hear some other estimates from people who have done the move recently.

Enjoy the trip and good luck with your jump...

Here's my overhead in Southwest Georgia:

Bought an acre of land out in the middle of nowhere: $1,500. I figure anyone who drives this far to see me is going to open an account!

Bought a used, single-wide trailer and parked it on the acre of land: $5,000. (I use this for an office.) Don't want to let-on how much money I make. A double-wide would've been puttin' on airs.

Three mounted deer heads for the office: $450. Gotta let my clients know I share their interests.

Framed GED to hang on the wall: $25. Academic accomplishments are important to my clients.

Five different colored clip-on ties: $15. Gotta look professional!

Hank Williams songs playing in the background, stereo, & speakers: $150. Settin' the mood.

King-size bed sheet to cover my used sofa, in the reception area: $25. Nothin's too good for my clients!

Throw rug to cover the hole in the floor: $25. I was showin' off my new huntin' rifle and it fired.

Case of beer: $15. For when clients get thirsty.

My cousin's old Apple II computer: $10. Nah, it doesn't run. I just keep it on my desk to look state of the art.

Three graphite fly swatters: $15. If you lived here, you'd know why.

Used tv, used vcr, and a tape of CNBC from June 6, 2003: $75. I can't get cable out here and the local stations are fuzzy, using my antenna. So, I replay the CNBC tape (muted) when clients are here.

Yep, I got a pretty sweet deal out here. My clients? They love it! Why, I wish you could see this big wad of money orders I took in just today! And it's all going in a mutual fund with front-end & back-end charges! Sure beats sellin' used cars!     Eat your heart out!!

Man, I didn't know Jeff Foxworthy was a moonlight rep...

Dob, you crack me up...I take it you drive an old Lincoln with a couple of hubcaps missing and the headliner hangin' down and flappin' in the breeze...