Partnering with a Pre-Retiring Vet
In this day and age there are many vets out there who would like to retire but cant just get up and walk away from a recurring revenue business.
I'm trying to figure out the best avenue to find a pre-retiring vet in the independent channel who would take me on to do all of the grunt work of running an exisiting business. I would gradually ease into the full time advisor over the years and the vet could then retire "slowly" and work as hard or as little as they wanted. I don't know how easy it is to work out a deal like this but feel this would be a great opportunity for both myself to get up and running, and a vet to get his money's worth for retiring on their own terms. My background: Merrill Lynch training program and independent intern with over two years financial advising experience, Series 7, 63, 65, and currently ready to move from the bank channel.[quote=buildingwealth]
In this day and age there are many vets out there who would like to retire but cant just get up and walk away from a recurring revenue business.
I'm trying to figure out the best avenue to find a pre-retiring vet in the independent channel who would take me on to do all of the grunt work of running an exisiting business. I would gradually ease into the full time advisor over the years and the vet could then retire "slowly" and work as hard or as little as they wanted. I don't know how easy it is to work out a deal like this but feel this would be a great opportunity for both myself to get up and running, and a vet to get his money's worth for retiring on their own terms. My background: Merrill Lynch training program and independent intern with over two years financial advising experience, Series 7, 63, 65, and currently ready to move from the bank channel.[/quote] Marry his daughter.First you have to find the person.
It is easy to find people who fit that profile. The hard part is convincing them they want to leave and you are the person to step in.
[quote=buildingwealth]
In this day and age there are many vets out there who would like to retire but cant just get up and walk away from a recurring revenue business.
I'm trying to figure out the best avenue to find a pre-retiring vet in the independent channel who would take me on to do all of the grunt work of running an exisiting business. I would gradually ease into the full time advisor over the years and the vet could then retire "slowly" and work as hard or as little as they wanted. I don't know how easy it is to work out a deal like this but feel this would be a great opportunity for both myself to get up and running, and a vet to get his money's worth for retiring on their own terms. My background: Merrill Lynch training program and independent intern with over two years financial advising experience, Series 7, 63, 65, and currently ready to move from the bank channel.[/quote] That's what I did, minus the independent channel part.[quote=BerkshireBull][quote=buildingwealth]
In this day and age there are many vets out there who would like to retire but cant just get up and walk away from a recurring revenue business.
I'm trying to figure out the best avenue to find a pre-retiring vet in the independent channel who would take me on to do all of the grunt work of running an exisiting business. I would gradually ease into the full time advisor over the years and the vet could then retire "slowly" and work as hard or as little as they wanted. I don't know how easy it is to work out a deal like this but feel this would be a great opportunity for both myself to get up and running, and a vet to get his money's worth for retiring on their own terms. My background: Merrill Lynch training program and independent intern with over two years financial advising experience, Series 7, 63, 65, and currently ready to move from the bank channel.[/quote] That's what I did, minus the independent channel part.[/quote] Any starting points or negotiation help would be greatly appreciated :) Also, I would be open to starting on a team at MSSB but don't know how to start that process either. I will be looking build my business in a large city like San Diego as well if that helps!You are a lazy SOB - how about you just pick up the phone and talk about joining their team.
Or you could say, look John, you've busted your ass building this business and I'd love to benefit from all your hard work by doing some paperwork and placing the orders. Help a guy out, man!
BW,
You need to do some homework yourself and then come back with specific questions. But saying you would either like to take over a vets book, or join a team at MSSB, "where do I start?" is a little presumptuous. How about "I spoke with 3 indy reps who gave me feedback XYZ, what do you think?" Or, "I went and spoke with the BOM at the MSSB office, he told me this. Whatdayathink?" Seriously, do a little leg work and show some effort.[quote=B24]BW,
You need to do some homework yourself and then come back with specific questions. But saying you would either like to take over a vets book, or join a team at MSSB, "where do I start?" is a little presumptuous. How about "I spoke with 3 indy reps who gave me feedback XYZ, what do you think?" Or, "I went and spoke with the BOM at the MSSB office, he told me this. Whatdayathink?" Seriously, do a little leg work and show some effort.[/quote] I understand what you are saying. I just wanted a general idea about these types of partnerships and what to expect. I won't be able to do any specific leg work until I move to San Diego, as I live far away and wouldnt want to start the partnership process in my city.A tin cup and a cardboard sign could work too.
Here’s whats not going to happen: You get a guy who’s trying to phase out of the business to sign any legal document guaranteeing that you will be the advisor of record once he steps down. He may say “Sure, if everything works out and you can handle this well and my clients like you, I will absolutely consider you to take over the book.” No way will he give a guy w/2 years of training and internship a “deal” that will transition the book. They will also look for compensation. He won’t just retire and walk away. He’ll need a deal in place himself that will give him probably 2x annual recurring revenue, which could be in the $500,000-$1,000,000 range depending on how much revenue the practice generates. Payable by you. Or whoever buys the practice.
Chances are someone will try to butter you up and say "Sure, I have been looking for someone for quite a while. You sound smart and I bet my clients could really relate to you...How about you come organize some of my clients files and coordinate next years meeting calendar for me for about 25-30 hrs a week. I'd LOVE to have you here as part of our practice, and to see where the future takes us!" He will say this not because he's excited about showing you off to his new clients. He will say this because he wants someone to come and do his b!tch work for him while he goes through his rolodex of friends in the business that he's considering selling his practice to. If he's been in the biz for long enough he'll have plenty of friends also in the business that he trusts. Many of his clients will be people who have become close friends and will be very sad when they find out he's retiring. The last thing he'll want to do is give them to the guy he knows has been in the industry less time than Facebook has been invented. Trust (and money) will be the driving factor as to who gets his practice.[quote=buildingwealth]
In this day and age there are many vets out there who would like to retire but cant just get up and walk away from a recurring revenue business.
I'm trying to figure out the best avenue to find a pre-retiring vet in the independent channel who would take me on to do all of the grunt work of running an exisiting business. I would gradually ease into the full time advisor over the years and the vet could then retire "slowly" and work as hard or as little as they wanted. I don't know how easy it is to work out a deal like this but feel this would be a great opportunity for both myself to get up and running, and a vet to get his money's worth for retiring on their own terms. My background: Merrill Lynch training program and independent intern with over two years financial advising experience, Series 7, 63, 65, and currently ready to move from the bank channel.[/quote] Seriously, you're not getting it. What is in it for the Vet to train you and split revenue on his existing book? I'm a proponent of teaming to build a business, but this is not what you want. If the guy wants to retire "on his terms" he would sell his practice for 2x whatever that recurring revenue you are referring to is and walk away with cash in hand. Unless you are willing to work for a 95/5% split, I don't get why this would be in the Vet's advantage.Two years!
Sorry to say I know of no vet that would hand a book to a rookie with only two years. Nothing personal but not going to happen! From what I have read here EJ good night program is as close as a rookie would ever get to free clients.Yep, I have a friend who thought he was getting this deal with NO experience. He’s been working for the guy for three years. Guess what happened? Guy’s daughter got married. Who do you think is getting the book?
a guy who is already working at headquarters in St. Louis in the PASS Program??Yep, I have a friend who thought he was getting this deal with NO experience. He’s been working for the guy for three years. Guess what happened? Guy’s daughter got married. Who do you think is getting the book?
[quote=Moraen]Yep, I have a friend who thought he was getting this deal with NO experience. He’s been working for the guy for three years. Guess what happened? Guy’s daughter got married. Who do you think is getting the book?
a guy who is already working at headquarters in St. Louis in the PASS Program?? [/quote]
Not Jones - Independent guy.
Even at Jones, in order to “sunset” your book to someone when you retire, they must have 3 full year’s experience at Jones, plus be exceeding expectations, plus have a profitable office, and then work on a split basis for 2-4 years (depending on size of book) before you take the whole nut.
Not if they're family...Even at Jones, in order to “sunset” your book to someone when you retire, they must have 3 full year’s experience at Jones, plus be exceeding expectations, plus have a profitable office, and then work on a split basis for 2-4 years (depending on size of book) before you take the whole nut.
Not if they're family...[/quote] Good point. Jones is great about allowing family members to take over their parents business. That's how it should be.[quote=B24]Even at Jones, in order to “sunset” your book to someone when you retire, they must have 3 full year’s experience at Jones, plus be exceeding expectations, plus have a profitable office, and then work on a split basis for 2-4 years (depending on size of book) before you take the whole nut.
[quote=buildingwealth][quote=BerkshireBull][quote=buildingwealth]
In this day and age there are many vets out there who would like to retire but cant just get up and walk away from a recurring revenue business.
I'm trying to figure out the best avenue to find a pre-retiring vet in the independent channel who would take me on to do all of the grunt work of running an exisiting business. I would gradually ease into the full time advisor over the years and the vet could then retire "slowly" and work as hard or as little as they wanted. I don't know how easy it is to work out a deal like this but feel this would be a great opportunity for both myself to get up and running, and a vet to get his money's worth for retiring on their own terms. My background: Merrill Lynch training program and independent intern with over two years financial advising experience, Series 7, 63, 65, and currently ready to move from the bank channel.[/quote] That's what I did, minus the independent channel part.[/quote] Any starting points or negotiation help would be greatly appreciated :) Also, I would be open to starting on a team at MSSB but don't know how to start that process either. I will be looking build my business in a large city like San Diego as well if that helps! [/quote] The vet I work for offered me a job when I was 2yrs into the business. He's in his late 40s and will start cutting back within 5yrs. That'll work out well, that way I'm in my early 30s before I start taking over parts of his book and I'll be late 30s when it all becomes mine. I guess if you could start somewhere and impress with your knowledge and work ethic and do joint-work you could arrange something with one of them once you've shown the vets there something.[quote=BerkshireBull][quote=buildingwealth][quote=BerkshireBull][quote=buildingwealth]
In this day and age there are many vets out there who would like to retire but cant just get up and walk away from a recurring revenue business.
I'm trying to figure out the best avenue to find a pre-retiring vet in the independent channel who would take me on to do all of the grunt work of running an exisiting business. I would gradually ease into the full time advisor over the years and the vet could then retire "slowly" and work as hard or as little as they wanted. I don't know how easy it is to work out a deal like this but feel this would be a great opportunity for both myself to get up and running, and a vet to get his money's worth for retiring on their own terms. My background: Merrill Lynch training program and independent intern with over two years financial advising experience, Series 7, 63, 65, and currently ready to move from the bank channel.[/quote] That's what I did, minus the independent channel part.[/quote] Any starting points or negotiation help would be greatly appreciated :) Also, I would be open to starting on a team at MSSB but don't know how to start that process either. I will be looking build my business in a large city like San Diego as well if that helps! [/quote] The vet I work for offered me a job when I was 2yrs into the business. He's in his late 40s and will start cutting back within 5yrs. That'll work out well, that way I'm in my early 30s before I start taking over parts of his book and I'll be late 30s when it all becomes mine. I guess if you could start somewhere and impress with your knowledge and work ethic and do joint-work you could arrange something with one of them once you've shown the vets there something. [/quote] What type of agreement do you have in place Berkshire? The main thing that worries me about this guy is that the best guarantee he'll get is a handshake deal from a senior advisor, and that won't hold up for 10 seconds in court if the advisor changes his mind about either who he sells the biz to or if he wants to work for another 5 years. And if buildingwealth isn't EXACTLY the type of person that the big advisor originally thought he was bringing on then it could be 2-3 years of wasted time working for a guy who ends up passing the biz onto someone else.On the flip-side, that’s what business is all about - taking risks. I think I would rather take that risk than go start from scratch at Jones. As long as the Jr. has his own book he is building (he better make sure he does), what’s the worst that could happen? They part ways, and he keeps growing his own practice, which is exactly where he would be if he started from scratch on his own. Which way has the higher chance of success?
JonesOn the flip-side, that’s what business is all about - taking risks. I think I would rather take that risk than go start from scratch at Jones. As long as the Jr. has his own book he is building (he better make sure he does), what’s the worst that could happen? They part ways, and he keeps growing his own practice, which is exactly where he would be if he started from scratch on his own. Which way has the higher chance of success?
[quote=3rdyrp2][quote=BerkshireBull][quote=buildingwealth][quote=BerkshireBull][quote=buildingwealth]
In this day and age there are many vets out there who would like to retire but cant just get up and walk away from a recurring revenue business.
I'm trying to figure out the best avenue to find a pre-retiring vet in the independent channel who would take me on to do all of the grunt work of running an exisiting business. I would gradually ease into the full time advisor over the years and the vet could then retire "slowly" and work as hard or as little as they wanted. I don't know how easy it is to work out a deal like this but feel this would be a great opportunity for both myself to get up and running, and a vet to get his money's worth for retiring on their own terms. My background: Merrill Lynch training program and independent intern with over two years financial advising experience, Series 7, 63, 65, and currently ready to move from the bank channel.[/quote] That's what I did, minus the independent channel part.[/quote] Any starting points or negotiation help would be greatly appreciated :) Also, I would be open to starting on a team at MSSB but don't know how to start that process either. I will be looking build my business in a large city like San Diego as well if that helps! [/quote] The vet I work for offered me a job when I was 2yrs into the business. He's in his late 40s and will start cutting back within 5yrs. That'll work out well, that way I'm in my early 30s before I start taking over parts of his book and I'll be late 30s when it all becomes mine. I guess if you could start somewhere and impress with your knowledge and work ethic and do joint-work you could arrange something with one of them once you've shown the vets there something. [/quote] What type of agreement do you have in place Berkshire? The main thing that worries me about this guy is that the best guarantee he'll get is a handshake deal from a senior advisor, and that won't hold up for 10 seconds in court if the advisor changes his mind about either who he sells the biz to or if he wants to work for another 5 years. And if buildingwealth isn't EXACTLY the type of person that the big advisor originally thought he was bringing on then it could be 2-3 years of wasted time working for a guy who ends up passing the biz onto someone else. [/quote] We're going to finalize an agreement in Jan 2010 when I've been working for him for 1yr. I really hope everything goes as planned, but if it does not I'll take my experience and connections and go elsewhere. The clients I had before he hired me will follow since although they're part of his book, I continue to service them. I'm 26 and have a lot of time. For someone 46 and breaking into this business this might not be the greatest situation. I didn't feel after 20 months that I had a strong indicator one way or another that I'd make it on my own so taking this opportunity doesn't seem like taking any additional risk. I was a middle-upper of the pack rookie that survived, it's not like I was hitting Seg 3 or anything...[quote=BerkshireBull][quote=3rdyrp2][quote=BerkshireBull][quote=buildingwealth][quote=BerkshireBull][quote=buildingwealth]
In this day and age there are many vets out there who would like to retire but cant just get up and walk away from a recurring revenue business.
I'm trying to figure out the best avenue to find a pre-retiring vet in the independent channel who would take me on to do all of the grunt work of running an exisiting business. I would gradually ease into the full time advisor over the years and the vet could then retire "slowly" and work as hard or as little as they wanted. I don't know how easy it is to work out a deal like this but feel this would be a great opportunity for both myself to get up and running, and a vet to get his money's worth for retiring on their own terms. My background: Merrill Lynch training program and independent intern with over two years financial advising experience, Series 7, 63, 65, and currently ready to move from the bank channel.[/quote] That's what I did, minus the independent channel part.[/quote] Any starting points or negotiation help would be greatly appreciated :) Also, I would be open to starting on a team at MSSB but don't know how to start that process either. I will be looking build my business in a large city like San Diego as well if that helps! [/quote] The vet I work for offered me a job when I was 2yrs into the business. He's in his late 40s and will start cutting back within 5yrs. That'll work out well, that way I'm in my early 30s before I start taking over parts of his book and I'll be late 30s when it all becomes mine. I guess if you could start somewhere and impress with your knowledge and work ethic and do joint-work you could arrange something with one of them once you've shown the vets there something. [/quote] What type of agreement do you have in place Berkshire? The main thing that worries me about this guy is that the best guarantee he'll get is a handshake deal from a senior advisor, and that won't hold up for 10 seconds in court if the advisor changes his mind about either who he sells the biz to or if he wants to work for another 5 years. And if buildingwealth isn't EXACTLY the type of person that the big advisor originally thought he was bringing on then it could be 2-3 years of wasted time working for a guy who ends up passing the biz onto someone else. [/quote] We're going to finalize an agreement in Jan 2010 when I've been working for him for 1yr. I really hope everything goes as planned, but if it does not I'll take my experience and connections and go elsewhere. The clients I had before he hired me will follow since although they're part of his book, I continue to service them. I'm 26 and have a lot of time. For someone 46 and breaking into this business this might not be the greatest situation. I didn't feel after 20 months that I had a strong indicator one way or another that I'd make it on my own so taking this opportunity doesn't seem like taking any additional risk. I was a middle-upper of the pack rookie that survived, it's not like I was hitting Seg 3 or anything... [/quote] I have the same mind set as to what you and B24 have said in your last posts. I don't want to start from scratch again, and by partnering up at the very least I will be learning a ton and building a book of my own. I am very inticed to the independent world , which is why I would like to try that route first if possible. The only wirehouse I could see myself working for right now is MSSB, but I know that any company is not as safe as working as an independent where you are only responsible for your activities and not the investment firm's as well.Source URL:https://www.wealthmanagement.com/forums/rookies-trainees/partnering-pre-retiring-vet