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Bank Advisor going Indy

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Nov 16, 2013 11:13 pm

Looking to move from Bank channel to Indy…most likely w LPL. Realistically going to move $20-25mm from funds, managed and VAs. Have roughly $40mm in Fixed Annuities that will come due over next 5 years.

What am I missing?
90% payout
$700-900 per month in LPL charges ( compliance, E&O, technology)
How much is a personalized website?

Fee based fees?
I like to implement allocations with ETFs, if I bill 1%, what program fees will client pay?

Fixed Annuities?
Does LPL have any competitive fixed annuities? For purpose of 1035ing existing contracts as they come due.

Dec 5, 2013 4:28 pm

Watch out for judge ordered temporary cessation of activities request that will be filed by that bank whose clients you are stealing. Things have changed from when I went off reservation. ALso, the banks are wise to keep tabs on departing reps that start 1035ing annuities after the cdc’s expire. The SEC is clear that ‘perpetual annuity fees’ for clients is at least malfeasance, and at most fraudulent. I would be shocked if LPL is encouraging this

Feb 13, 2014 1:37 am

Worked at LPL for seven years before joining Cape Fear Securities, Inc. Should’ve made the move earlier. LPL is not competitive on fixed annuity offerings at all. They will not let you be an OSJ at the level you’re looking at. On their wrapped accounts, the “admin” fees they charge make it difficult for the advisor to price competitively. For example, if you have a husband/wife client with the following accounts: Husband 90k IRA, Wife 90K IRA, Joint Account 90K, Husband 90K “Roth”, and Wife 90K “Roth,” LPL will charge you 25 basis points as an “admin” fee straight off the top. Example, you charge 1% fee, which is $4500/year, LPL takes $1250 right off the top, then pays you 90% of the residual $3250, which is $2925. They keep the other $325 as well as the $1250, meaning your payout is actually 65%. This is assuming the client will pay their own ticket charges each time you make a trade. Their fees increased every year I was there. They are ridiculous. Give me a call at (910) 818-0375, and I’ll show you a better alternative.

Feb 21, 2014 6:43 pm

Be aware that Bank assets tend to be VERY sticky to the bank. Numerous times Ive seen bank brokers leave the bank for another firm and see 50+ % of those assets stay at the bank. These were assets that the moving broker WANTED to take with them.

Just make sure you are not screwing yourself before you make the leap

Aug 26, 2014 9:26 pm

Update: Left the bank and the transition has been pretty smooth. I’m finding that as people go to the bank less because of mobile banking…the actual relationship is with the advisor, not the bank.

Sure some clients have stayed with the bank citing their long term relationship with the bank…but not as many as I thought.

Have moved $18mm in business that pays a trail, and changed broker of record on about $5mm in Fixed Annuities.

So far so good…