Question for Indies...PAYOUT
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My friends who gave me this information showed me their complete runs
for 2006. We have been friends for many years and they have no
reason to mislead me. I was suprised that they were doing as well
as they were.
Whomit:
The ACAT fee out of Smith Barney is now $90 bucks per account? Damn.
Aren't most firms $50?
Question for all? When going indy, did you pay for your top client ACAT fees? Or was it even an issue?
TIA
I paid, and will pay all of the transfer fees for 1 year. I use this obviously for my old clients, but also for my new ones. I’m guessing I’ve paid out 10-15k in acat fees since Feb.
Submit the number of accounts you want to transfer and use that in negotiating your transition package. Most b/ds will pay for it.
I paid ACAT fees when I opened up & for 3 months for my old clients. Since then (7 years) I don’t pay ACAT fees. I just tell them we can move their account(s) without charge, but that their existing firm may have a charge (if I know what it is, I always tell them) to close their account. Why create overhead expense when you don’t need to?
I use it to squelch any resistance to the move. You won’t believe how many people I’ve met with who would not move from a bad situation because of a 50-100$ fee. Because I’ve moved to Indy, I felt the need to cover the costs of their move. I left, they really didn’t have to…and I didn’t want them to incur a fee because of it. I may be wrong…but I believe its the cost of doing business and I should make the fee up in the long term.