Where to find newish FA's with books of 10mm+
I own an RIA in CT and we’re looking to expand throughout New England. Ideally we’re looking to find FA’s that are a few years into business and have books of $10mm+. We figure there are a bunch of really talented FA’s out there that have been slammed by this market and may be pushed out of the business. We can provide upto 80% payout, admin support and leads.
How do I find these folks? Greg
In my area I got a bunch of Jones guys. I’m gonna start in on SB guys and bank guys soon.
UBS, Wachovia, Merrill, Morgan…the list goes on. Those folks you’re talking about are the ones nobody at the wires want right now. I get letters from Ameriprise all the time. Maybe you can figure out how they got my name and home address and send a similar letter.
consider hiring a headhunter to find people in your target niche. They could do a target search for you.
UBS, Wachovia, Merrill, Morgan…the list goes on. Those folks you’re talking about are the ones nobody at the wires want right now. I get letters from Ameriprise all the time. Maybe you can figure out how they got my name and home address and send a similar letter.
Spiff, I love ya, but NOBODY wants these guys? If you have a cost prohibitive model, then yes, nobody wants those guys.
A guy with $7mil sits in a three person branch office, generating approximately $105k (7mil at 1.5%), he gets 60% of that $63k, the remaining $42k more than covers the costs of the space. I make a nice tidy profit. Clients get serviced with no limiting products or bad stock advice. And that's just the stuff he brings over.
Market turns back around, money goes up. Guy brings in more assets, we make more of a profit. If I could take every Jones guy with a book of $10mil or more, I'd snatch them up in a heartbeat.
Thats some damn expensive office space for 3 brokers…
Thats some damn expensive office space for 3 brokers…
$42k MORE than covers.
Or are you saying the brokers are paying too much? Might be, but their compliance is included, they get to share an assistant who handles all account transfers. E & O. I mean, it's better than their current deal. They at least have recurring revenue and don't have to worry about churning their clients accounts or getting too many accounts to handle in order to make a living.
Hey, and if they get to $10mil, payout jumps.
Oh, and one of the guys in the office is a CPA. Not an advisor
Where in CT? I graduated from Simsbury High School. I haven’t had a decent meatball grinder in years.
Greenwich, CT
I dunno Greg, a lot these guys are probably losers. Seriously, I see the business opportunity, but if they need you to figure it out, they may end up costing you more than a haircut.
Let me get this straight.. a broker with [email protected]%(which seems high, but anyways).. so that is 105K gross. You are giving them 60% payout.. so $63K.. Then $42K covers the rest(3500/month)= so lets assume e/o is $200/month($2400/year.. again rather high but whatever) so $3300 to cover space for 1 person and an asst that he shares? Are you including CRM, Analysis Software etc??[quote=Spaceman Spiff] UBS, Wachovia, Merrill, Morgan…the list goes on. Those folks you’re talking about are the ones nobody at the wires want right now. I get letters from Ameriprise all the time. Maybe you can figure out how they got my name and home address and send a similar letter. [/quote]
Spiff, I love ya, but NOBODY wants these guys? If you have a cost prohibitive model, then yes, nobody wants those guys.
A guy with $7mil sits in a three person branch office, generating approximately $105k (7mil at 1.5%), he gets 60% of that $63k, the remaining $42k more than covers the costs of the space. I make a nice tidy profit. Clients get serviced with no limiting products or bad stock advice. And that’s just the stuff he brings over.
Market turns back around, money goes up. Guy brings in more assets, we make more of a profit. If I could take every Jones guy with a book of $10mil or more, I’d snatch them up in a heartbeat.
Reporting software, planning software, they have a computer (a very nice computer i might add), desk, phone, chair, etc. They sign an agreement that says they can leave any time they want, and that we won’t go after their clients.
1.5% is certainly not high. Breakpoints start at $250k. Average Jones rep has an average account size of around $50k. Start at 2%, breakpoints all the way down to .75%. E&O is only $470 a quarter. Regardless, they are still taking home more than they are at Jones. Plus, they have a fee-based model, they get 100% payout on insurance, and they dont' have to worry about where their next check is going to come from. It's steady. Peace of mind for a lot of these guys is pretty high. Some people just don't want to own a business. And they aren't happy at Jones (although, like I said, I'm running out of people who aren't happy there). And, if they had $10mil under management, payout jumps to 70%. $20mil jumps to 80%. Do I make good money, yes? But I set up the firm, I've incurred all of the startup costs for them. I have to manage the business. All they have to do is manage their clients.Where do you get E&O for $470 a quarter?
That makes more sense... I thought they would still have to pay for all the extras..
That is actually a pretty slick deal for someone who wants an indy payout without the hassle of doing it themselves.. Especially if you add those escalators on AUM.. I am curious what are your breakpoints? so 2% for under 250K, 1.50 for 250K - ?Source URL:https://www.wealthmanagement.com/forums/rookies-trainees/where-find-newish-fas-books-10mm