What happens if you go Indy and get it by a truck?

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Jan 25, 2009 10:41 am

My concern in going "Indy" is how will I take care of clients as a sole practitioner if I need surgery, get sick, or get hit by a truck. How do you handle back up support, or if a client needs to place a trade while you are out of the office or in an appt.?

 
Do any of the BDs work with you on this one, or provide for a book transition should you be unable to continue...get hit by a truck?
 
Thanks!
Jan 25, 2009 11:00 am

You have clients that need to place trades? Why do they need YOU?

Jan 25, 2009 11:08 am

You become a business owner which means it's your responsibility to make arrangements for issues like this in advance. RJ does encourage it because it's in their interest, so they will give guidance and help put the adviser in touch with other advisers. I don't know that other BD's are as active as RJ has become. They only started doing this over the last couple of years.

Jan 25, 2009 11:13 am

Damn! you found out our dark secret! If you are unavailable, indy firms have the right to immediately liquidate the entire household of accounts and keep the proceeds. LOL.
 
 Seriously, at least at LPL, there is a dedicated customer service 800 number that is able to answer any questions or place any trades the client requires. I've never had a client need to use it personally, but I've called and grilled the reps pretty thoroughly and the level of service
is impressive; better than a lot of brokers I know actually provide their own clients.

 

Jan 25, 2009 11:24 am

Link up with an experienced insurance rep and buy some life insurance, disability insurance and draw up a buy-sell agreement.  Check with your home office about other reps who can help manage your book while you're out.  Look both ways before you cross the street.

Jan 25, 2009 11:49 am

There are tons of transition programs available inside my b/d about how to do such a thing.. sell to other reps within the b/d, taking leave.. etc...

 
What happens when you are anywhere else? You leave, they give your accounts to people you know or don't know(some people who you wouldn't give a crappy account to, sometimes your replacement).. I think at least this way I get to choose..
 
 
Jan 26, 2009 12:35 am

I've got a buy-sell/cross-servicing arrangement with another local LPL rep I trust, but eventually I intend to staff the office sufficiently that it can operate without me.

Jan 26, 2009 12:57 am

Go with other succesful men and women and work it like a business. Have keyman insurance, success plans and failure plans. Do not go unless you are ready to be a bussiness owner, the most honorable profession in exsistance. Think the way your most successful clients think. I have learned the most from them. I have owned a business before and signing the front of the check is different than signing the back but the most satisfying. This industry is still the greatest professional opportunity in all the world.

Jan 26, 2009 7:18 am
Indyone:

I've got a buy-sell/cross-servicing arrangement with another local LPL rep I trust, but eventually I intend to staff the office sufficiently that it can operate without me.

 
How is the arrangement funded in case of disability or death?  You certainly don't intend on paying your employees with good will, right?  How long will it take for the other rep to get up to speed with the way you do things, in case you are out for an extended period?
 
I ask these questions because there are an awful lot of reps on this board who are to turn themselves into business owners.  Unfortunately, most business owners I come across don't take care of these things.  In some cases, they'd like to take care of them, but it's too late. 
Jan 26, 2009 8:55 am

Like all B/S insurance.  Basically, one rep buys life insurance on the other (and vice-versa).  If you die, the life insurance I bought will pay your family for the business, and then I take over the business.  As far as getting "up-to-speed", it's no different than taking over a book from a departed FA at a wire.

Jan 26, 2009 8:58 am

The first step for me was to purchase business overhead expense coverage.  It's quite cheap, actually.  I've been thinking about offering the coverage to local business owners as a way of getting a wedge in versus their current relationships.

Jan 26, 2009 9:42 am
B24:

Like all B/S insurance.  Basically, one rep buys life insurance on the other (and vice-versa).  If you die, the life insurance I bought will pay your family for the business, and then I take over the business.  As far as getting "up-to-speed", it's no different than taking over a book from a departed FA at a wire.

 
Haha, I'm familiar with buy-sells, I was making the point in case someone else on the board wasnt
Jan 26, 2009 9:43 am
HymanRoth:

The first step for me was to purchase business overhead expense coverage.  It's quite cheap, actually.  I've been thinking about offering the coverage to local business owners as a way of getting a wedge in versus their current relationships.

 
Virtually all business owners I talk with have never heard of BOE.  It's a great wedge.  Good luck with it.
Jan 26, 2009 9:58 am
deekay:
B24:

Like all B/S insurance.  Basically, one rep buys life insurance on the other (and vice-versa).  If you die, the life insurance I bought will pay your family for the business, and then I take over the business.  As far as getting "up-to-speed", it's no different than taking over a book from a departed FA at a wire.

 
Haha, I'm familiar with buy-sells, I was making the point in case someone else on the board wasnt
 
I thought so, but sometimes I can't remember who is who....