Wire to indie...credit question

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Mar 26, 2009 8:55 pm

i am at large wire...talking to indie...been put in penalty box at wire....question, my credit rating is.....very low..due to credit cards....way behind...so they say...wrote off,,,but i am paying as i can...i had good credit previous to ...paid off mtg....make two car payments, ok....etc....my broker record is clear...

 
does anyone...know...will this put a complete stop on my moving to indie....??  tks,
Mar 26, 2009 9:34 pm

Could you post this in one other place just to be sure??

 
I know indys will check(like all employers do) but not sure how much it matters..
Mar 27, 2009 2:11 pm

Not nearly as important to most indy firms as it is at banks and wires in my experience

Mar 27, 2009 7:43 pm

As long as you have no judgments, creditor compromises or BKs, you'll be fine.

Mar 27, 2009 7:44 pm

what is a creditor compromise

Mar 27, 2009 7:53 pm

You owe a creditor $20 bucks, and you work out a deal to pay them $10 and they consider the matter closed. It's reported on your credit as a compromise with creditors, and for some reason, that's inportant to FINRA.

 
 
Mar 29, 2009 12:26 am

I can never quite figure out how people in this position feel that they are in any way qualifed to handle the money of real adults.  Can you help me to understand that?

Mar 30, 2009 1:40 pm

I am more concerned about his punctuation rather than his finances.  My question, why are you in the penality box?? Is it due to production or is it due to a possible complaint?  I don't think it will stop going Indy completly but you might want to partner up because landlords, utilities do look at credit when setting up shop.

 
IndyEDJ
Mar 30, 2009 10:20 pm

can never quite figure out how people in this position feel that they
are in any way qualifed to handle the money of real adults.  Can you
help me to understand that?
****************************************************************

Your a jerkoff. You'll be broke with a sh
tty credit report before this is all over as well.

Mar 30, 2009 10:36 pm
Soothsayer:

I can never quite figure out how people in this position feel that they are in any way qualifed to handle the money of real adults.  Can you help me to understand that?

 
I agree with the other guy... kind of a putzy comment.  We all know how much it sucks starting out. I was $25K in the whole by the time I got settled. But now I net 10x that. I have seen all kinds of people run into problems..
 
I have seen clients who are off the charts smart who had their entire 401K in money market for the last 5 years.
 
Same can be said for advisor who take lump sum payouts and don't set it aside for retirement instead of buying bmws, more house and crap...
 
I don't think a credit score(something that should be abolished anyways) should dictate the success or qualification of an advisor..
 
 
Mar 30, 2009 11:26 pm
Squash1:
Soothsayer:

I can never quite figure out how people in this position feel that they are in any way qualifed to handle the money of real adults.  Can you help me to understand that?

 
I agree with the other guy... kind of a putzy comment.  We all know how much it sucks starting out. I was $25K in the whole by the time I got settled. But now I net 10x that. I have seen all kinds of people run into problems..
 
I have seen clients who are off the charts smart who had their entire 401K in money market for the last 5 years.
 
Same can be said for advisor who take lump sum payouts and don't set it aside for retirement instead of buying bmws, more house and crap...
 
I don't think a credit score(something that should be abolished anyways) should dictate the success or qualification of an advisor..
 
 



Go back and re-read the original post.  Absent some major extenuating circumstances such as a divorce or health issues(and perhaps even with those circumstances), to become so overextended on credit cards that you can't pay them suggests a major lack of discipline, responsibility, and understanding of basic personal financial principles.

And that's before we even delve into the question of how you take on financing for a couple of cars when you have a big load of credit card debt...

If you can't live within your means during good times, it's going to be really painful when things are not so good.

Final thought- keep in mind that people who work on commission who are also deep in debt can be a compliance risk in this business...they'll be tempted to churn client accounts or focus heavily on high-commission products regardless of the impact on their clients' well being.

Apr 1, 2009 9:38 am

There are 5,000 plus broker/dealers in America.  Unless you have a nasty compliance record, you will probably be able to find a home somewhere; it just might not be with your first choice.  If you are stuck in the penalty box, it is going to be even tougher to dig yourself out of a debt hole. 

 
Will independents take you?  Perhaps.  What are your production levels and assets under management?  Do you have any customer complaints?  You set the bar against you when you try to go independent without two nickels to rub together.  How could you set up an office with no seed capital?  Your first month, you are chasing ACATs, so it would be unwise to  think you are going to make a ton of money unless you have something like a big annuity to place. 
 
That being said, some broker/dealers will work with you if you have a valid reason why your credit is poor.  They may even be willing to  front you some start up funds to get you started in return for a lower payout for a period of time.  The other possibility is to look locally at reps that are already independent.  You can often ride on the coattails of a local branch manager if they are comfortable with you.  While you are at greater risk of doing bad things when you have no money, you may find a firm willing to take the risk.  A representative doing over $200,000 a year can be profitable to an independent if they stay out of court. 
 
Best of luck to you. 
Apr 1, 2009 12:10 pm
Squash1:
Soothsayer:

I can never quite figure out how people in this position feel that they are in any way qualifed to handle the money of real adults.  Can you help me to understand that?

 
I agree with the other guy... kind of a putzy comment.  We all know how much it sucks starting out. I was $25K in the whole by the time I got settled. But now I net 10x that. I have seen all kinds of people run into problems..
 
I have seen clients who are off the charts smart who had their entire 401K in money market for the last 5 years.  
 
Same can be said for advisor who take lump sum payouts and don't set it aside for retirement instead of buying bmws, more house and crap...
 
I don't think a credit score(something that should be abolished anyways) should dictate the success or qualification of an advisor..
 
 

I think I'd be hesitant to imply that these clients are idiots.


Instead, maybe they're clairvoyant?
Apr 1, 2009 10:12 pm

Thanks for getting my back Hyman Roth.  I was new in this business at one time, too.  I understand that.  And, at that time, I had a brand new family and a stay-at-home spouse.  That being said, I lived in a house that I could afford.  To the idiot who said that I would be broke before all of this is over--I still live it that same house only now it is completely paid for.  My cars were paid for.  And I had reserved a significant amount of money to pull me through the first few years without ever having to skip or miss payments.  In other words, before I was ever a licensed financial advisor, I had managed to build a little bit of wealth on my own by applying the principles that I would be suggesting others adhere to.  I guess it was a little bit of the Zig Zigler mentality or whatever else you want to call it. 

 
Getting financial advice from people in the position mentioned would be like going to the doctor and being told to eat better, lose weight, excercise more, etc., etc.  However, on the way into the office you saw the doctor downing the last bite of his Big Mac, washing it down with a 46oz. Coke, and sparking a Marlboro to get the post-eating high of nicotine just before seeing you.  If you could see the grease on his fingers and smell the smoke on his breath, how much credence would you give doc's advice.