I'm buying a book of business. Need thoughts and advice

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Jul 29, 2014 5:36 pm

Hello all,

I'm relatively new here and have only done a little exploring through the forums. I'm looking for advice, suggestions and feedback for my situation. I'm currently a registered assistant working for a planner at an indy b/d. I have my 7, 66, and health life va licenses. I'm about to begin my CFP cert. Talks have started between me and the planner I work under, for me to buy out his bob so I can step into the advising world. This is all new to me, so I have no clue what the process is and what to expect so I have a few questions I'm hoping someone here can answer. What should I expect to pay for a bob of say 10mm aum? Should I get an attorney to review the buy/sell agreement? Do I need to get E&O, broker's license before working out any proposals or is it in my best interest to see a proposal for a buy/sell before getting E&O and broker's license?

This is a very important step in my career so I'm trying to seek out as much advice as I can. I realize more questions may need to be answered by me first before any of you can offer any advice. Feel free to ask away and I will do my best to answer. I'm also fairly new to the financial advising world so I qualify as very noobish. Keep this in mind. I think that's it for now. I'm sure I will come up with other questions after posting this. Thank you to any and all who read this, I appreciate your time.

Aug 3, 2014 3:02 pm

10mm is not a book, it’s an account. You can’t justify paying anything more than a slice of rev. Say 50/35/20/10/10. Also remember, you can’t “purchase” good accounts. They need to be curated over time, with patience, hard work, and skill. You might get lucky and convert a few into long term relationships, but just because you bought them, does not in any way imply they are actually clients of yours yet. Bottom line, what you are talking about, is only a head start.

Aug 12, 2014 3:00 pm

Thanks, I’ll keep that in mind moving forward.