Evaluate my Plan
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[quote=financeguy]
......how about the 93% failure rate in the industry?
[/quote] The only failure rate that matters is your own, if you're willing to do what it requires you'll succeed, if not you'll fail. If there were an "easy" way then everyone would be an FA.Financeguy - rather than work in a call center, you would be better off working for a financial advisor, either an individual or team (just as the people you are talking about worked for the broker for a year). You would begin to learn the business and figure out if this is really what you want to do.
Yes, with enough capital you could buy someone's business. Not a problem, they may or may not care enough to see if you can keep the business going -- it won't be their problem, right? There are lots and lots of people who can come up with reasonable basic financial plans/investment plans/ whatever you want to call them. Even working at a call center and studying for your CFP, you likely would be able to develop those skills. So, you have the skills to create a plan and you buy a business, hence you have clients. There are two problems: first, some of those clients die, move away, don't like you, someone else makes them think they can do a better job than you can, or their new son-in-law becomes an FA. The business you purchase is a diminishing resource. You will need X amount of clients &/or assets to maintan your business model, and actually provide raises for yourself and your staff, plus handle increases in expenses. You will likely need to slightly increase the number of clients &/or assets annually. However, you will lose clients & assets annually for the reasons stated above. You will need the ability to bring in at least enough new clients/assets to keep the business at par. How will you do this? Second, eventually you will need to convince your clients to take a different course of action than the first one laid out for them. Perhaps now is the time to lighten up on bonds, or to start picking up dividend paying stocks, or begin added real estate investments again. You will need communication skills to persuade them to follow your recommendations. They won't do it just because you analytically lay out the information -- people must be motivated &/or educated to follow your advice. How will you develop these skills? This skill set is essential to the success of your business model.How about this one, Finance guy? If you start as a broker and build your own practice, you won't have to buy one. This means that your $250,000 that you were going to use to buy a practice can be invested instead. From age 30 to 70, if your $250,000 grows at 10%, it will be worth around $16,000,000.
The problem is that your plan seems to be based upon a desire to not sell and not prospect instead of it being based upon a sound business decision.
Each time you post, you show that you know very little about this business.
[quote=financeguy]
Old Lady: I really appreciate your advice
The problem is is that right now I am approx 22. Working in a call center is perfect for me at this age. I make over 60k,($60m yr=$45m net. $150m in 5 years = $30m year savings, you are going to live on $1250/mo?) I get to work with high net worth clients, and I get to live/work in a beautiful city. Also, I have the opportunity to learn everything about the financial aspects of the business.
I've always felt that if I learned all of the financial aspects of the business, then I will be able to better serve my clients. Clients will respect the fact that I already have experience working with high net worth individuals whenever I buy a business. They will care more about my financial credentials (no, financial credentials rarely comes up with clients, far more important that you can position yourself (SELLING) to clients) than my sales skills. With that said, I'm going to pay very careful attention to things that add value for my clients; such as charging a low fee percentage (this is devalueing (sp?) yourself as an adviser, I love when a competitor's biggest value proposition is that he is the cheapest, kinda like Walmart) on assets, and investing in no load mutual/index funds which will keep fees down as well. (Again it does not matter what it costs, it matters what the value is)
Anonymous: If I dont buy a practice due to many of the problems mentioned by some of the posters in this post, I hope to just use whatever cash I have to start a business from scratch. I won't mind cold calling and door knocking in that case because I would be building the business for me, not whatever company owns it. (one of the most important things you do for clients is risk management, your example you are taking 100% of the risk. This is the advantage of starting out at a firm as your only risk is the time spent) I've always wanted to be my own boss first and foremost, however, I would like a cushion of at least 150-200k in order to handle the first few years in case I'm not making a lot of money.
Do you guys know of any companies that will let me use them as a broker with little to no assets starting off? or is there even such companies out there?
[/quote] As far as grandma giving her life savings to a 22 yr old vs. a 30yr old, not much difference.[quote=Broker24]If you are so set on this working, then why are you asking anyone’s opinion? If you don’t want to hear the answers, then don’t ask. Man, you sound like my wife… “Do I look fat in this?” -wife “Yes.” - me. “WHAAAAAT???” -wife “Honey, if you don’t want to hear an answer other than ‘no’ than don’t ask.” -me “WHAAAACK!!” -my face So, we are giving you an answer you don’t like, and you are freaking out and slapping back at us. If you’re just looking for affirmation of your plan, get a dog.
Dude, nothing for nothing, but wouldn’t is be easier to lie?[/quote]
Hey Nothing, it’s called sarcasm.
So, you are fesh out of college (22 years old); however, you were employed with Jones about 2 years ago and left before KYC. First, are you telling us Jones hired you before you graduated college (or while you were still attending)? Also, you stated "what are the odds a 70 year old retiree is going to hand his money over to a 22 year old kid. Pretty nonexistent if you ask me, in fact, this is what I ran into while working for EJ even though I was working 70 hour work weeks. I knew that I was set up for failure." If I remember from the other thread, you quit before KYC. If that truly is the case, exactly when were you having issues getting clients when you're not even really prospecting at that point? My opinion...you want something for nothing. And, let's be honest...bottom line...this thread is BS. You're giving us the run around for your own amusement and wasting our time. If you would spend half the energy prospecting/building a business as you do posting to this site you would be successful.Also, let me also say, its not selling that I am afraid of. What I dont want to do, is join a company where I have pressure to meet unrealistic expectations or lose my job. At the age I’m at now, 22, it is very likely that I would fail entering this industry right now. I mean lets be honest, what are the odds a 70 year old retiree is going to hand his money over to a 22 year old kid. Pretty nonexistent if you ask me, in fact, this is what I ran into while working for EJ even though I was working 70 hour work weeks. I knew that I was set up for failure. I hope to have my own business and a nice cushion of money so that I can focus on finding a nice practice or building a practice with the types of clients that I want…even if it does to a few years to get going to where Im making decent money. I really do love being a financial advisor and know this is my calling, its just a matter of time before my age catches up with the knowledge I have of the financial aspects of the business.
[quote=financeguy]And the more you post, the easier it is for me to see how little you know.
1) I actually have a budget where I live on $900 a month. I can break it down more for you if you want me too. I actually have all my expenses on an excel spreadsheet.[/quote] It helps living at home with your parents. You have NO IDEA how the world works. Go back to your X-BOX.[quote=financeguy]And the more you post, the easier it is for me to see how little you know.
1) I actually have a budget where I live on $900 a month. I can break it down more for you if you want me too. I actually have all my expenses on an excel spreadsheet. Ever heard the phrase money attracts money? People are going to give their millions to someone who lives at home and drives a 10 yr old POS? 2) I will be able to position myself well with clients by impressing them with my financial knowledge. Clients care about their returns believe it or not. (Yes they do, in fact it ranks 4th on the list, trust is #1) I will show them how I am different than the typical advisor. Luckily I have a good idea how this industry operates. (From going through the EDJ interview process?) 3) No, not devalueing, I will be adding value to the client. I will explain to him the way the business truly works,(good thing nobody else has ever thought of this) and as a selling point, I will show the client I can give him the same investment products at a lower cost than my competitor. By doing this, I will be adding value to the client. I mean, why would a client pay 5.25% to buy a mutual fund at some wirehouse, when I can charge the client a flat 1% fee each year.(Why would a client pay you 1% PLUS fund fees (2-2.25% total) when a wirehouse broker can give them the same funds at 1% and use institutional shares (1.60-1.80% total). You cannot win the cost battle, someone is alway cheaper and if you are attracting clients based on price, you will lose them for the same reason.)I find that many investors are becoming more savvy and wary of financial advisors in general. 4) Starting out at another firm is more risky in my opinion than doing it myself. At another firm, I will have production quotas which will prove to be quite troublesome for someone below the age of 30.(So you admit you can't do it) I dont mind taking all of the risk because I believe I can succeed. I have succeeded in everything I have done at this point. (Except your first crack at this business) Even though I quit EJ early on, I consider that a success because my quitting was based on certain principles (you've already said these issues, you don't want to prospect or sell) which I dont care to elaborate on on this message board.[/quote] Quick question since you know how the business works. What exactly is the difference between charging 5.25% and 1% fee?What happened to all of this douche’s posts? They are all blank, did he run away and take his posts with him?
I can't believe he is this naive...it can't be for real. By the way, can someone please clue me in on who would be talking to ANYONE at a call center if they have $20MM-$250MM? Can you imagine someone of this net worth talking to someone at a call center about their investments? Nice April Fool's joke 20 days late Finance Guy. You're a homo.[quote=Primo]
Unbelievably High Nonexistant Wealthy Clients Are you saying you don't have any of these UHNW clients snaggle? [/quote] Hell ya Primo! Check it out...I've got like 10 of them. I was working at this call center where all these really, really, wealthy clients have big, big accounts. I mean, we're talking the Walton's of Wal-Mart, Bill Gates, John McCain, and so many other exclusive people. The best part about it is that they call us and we help them in our little groups we work in. I've learned so much that I've developed personal relationships with all these people. I kid you not, John McCain has promised me a trip to Camp David if he's elected. Anyway, I saved this boatload of money because I lived at home and took the bus for 8 years. I bought this guy's practice for $250,000 because he liked my credentials. He said he's never known of anyone so dedicated to get their CFP while working in a call center. I told, "Yeah, it was difficult. Between receiving calls from clients with $100+MM about whether we should shift from value to growth and large cap to small cap, to studying for the CFP, I was so short on time". I would almost miss the bus at night to go home to Mom's meatloaf. So I bought this guy's practice, I mean he just handed it to me. I couldn't retain him as a client though because I couldn't sell him (I don't like to sell. I don't know how and I think it's mean). I was able to bring over some of these clients that our call center worked with that had between $20MM-$250MM. My call center didn't even come after me...I couldn't believe it. It must have been because of my morals and ethics from not wanting to sell people. So now I've got this book of business with $3 BILLION!!! I am so happy. I am 30 years old, just moved out of Mom and Dad's, and felt I could splurge and by a Scion...It's SOOO Sick Dude!!! I'll keep you posted, but look for me on CNBC. With all my credentials, I have offers everyday to speak and give some of my worldly wisdom. I hope you guys do well with your tiny $500,000 IRA Rollovers.....I am SOOO far above you and I didn't even have to sell or prospect....who's the piker now bitches!?!?!?!?Only 10??? Must be new to the business. I went a different path than the call center. I used a pyschic and a phone book, but whatever works.
Now that's funny shit.Only 10??? Must be new to the business. I went a different path than the call center. I used a pyschic and a phone book, but whatever works.