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advisorman View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote advisorman Quote  Post ReplyReply Direct Link To This Post Posted: Aug/13/2020 at 7:03pm
Move the commisionable to fee based when you move. Give them no choice or tell them to pound aand
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helado View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote helado Quote  Post ReplyReply Direct Link To This Post Posted: Aug/13/2020 at 10:30pm
Originally posted by Grimes Grimes wrote:

I’m an advisor with a regional firm and am looking at Cetera and LPL to go either independent or RIA.

I have $34 million in assets with 125 households. Half is fee based. Most of my better clients are out of market so I will run it out of my home for now.

Cetera made a more attractive offer, but will not allow me to run RIA at my production, and doesn’t think my O share annuity business is portable.

LPL’s corporate RIA is extremely appealing, but they want a 7 year note and a hurdle for assets to receive the full transition payout.

What do you think?

Both suck.  LPL sucks less.  Cetera is a dumpster fire you should avoid at all costs.  

You should be looking at Commonwealth or Cambridge most likely.  RIA seems like a bad fit for a 50% fee-based business.  

You aren't at a regional.  If you have O-share annuities, you're at EDJ.

Welcome to the forum.
My posts are for abrasive entertainment only. Nothing posted is investment, legal, tax or any type of advice, nor is anything mentioned true or even based on real events. Posts are complete fiction.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote helado Quote  Post ReplyReply Direct Link To This Post Posted: Aug/13/2020 at 10:35pm
Dude this guy has commission breath.  You're talking to a dumpster fire b/d that was bankrupt and is an ongoing shitshow because they are offering you a little bit of extra money up front?  Where there's smoke, there's fire.

And LPL is notoriously a gigantic behemoth of a pain in the ass.  But they aren't crooks at least.  The service will suck.  The nickels and dimes will add up.  But they have scale.  

You need to broaden your search.  And you need to brush up on your terminology.

Based on what you've posted here...you aren't going RIA.  You don't seem to know "Chapter 1" about the book of going RIA.  
My posts are for abrasive entertainment only. Nothing posted is investment, legal, tax or any type of advice, nor is anything mentioned true or even based on real events. Posts are complete fiction.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Grimes Quote  Post ReplyReply Direct Link To This Post Posted: Aug/13/2020 at 10:39pm
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Edited by Grimes - Aug/17/2020 at 2:57pm
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Post Options Post Options   Thanks (0) Thanks(0)   Quote bc2051 Quote  Post ReplyReply Direct Link To This Post Posted: Aug/13/2020 at 11:25pm
Isn’t EJ officially a regional? I guess they have their own category...asking Helado and I’m here. Lol
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helado View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote helado Quote  Post ReplyReply Direct Link To This Post Posted: Aug/13/2020 at 11:28pm
I was just busting his balls.  Some people call them a regional but that's not really accurate.  They are their own animal.  Similar feel to a regional, but similar scale to a wire.  
My posts are for abrasive entertainment only. Nothing posted is investment, legal, tax or any type of advice, nor is anything mentioned true or even based on real events. Posts are complete fiction.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote helado Quote  Post ReplyReply Direct Link To This Post Posted: Aug/13/2020 at 11:36pm
Originally posted by Grimes Grimes wrote:

Originally posted by helado helado wrote:

Dude this guy has commission breath.  You're talking to a dumpster fire b/d that was bankrupt and is an ongoing shitshow because they are offering you a little bit of extra money up front?  Where there's smoke, there's fire.

And LPL is notoriously a gigantic behemoth of a pain in the ass.  But they aren't crooks at least.  The service will suck.  The nickels and dimes will add up.  But they have scale.  

You need to broaden your search.  And you need to brush up on your terminology.

Based on what you've posted here...you aren't going RIA.  You don't seem to know "Chapter 1" about the book of going RIA.  


This is why I came here.

A Cetera rep formally with my current firm said her experience has been great.

I will call Commonwealth and Cambridge tomorrow.

What makes them better?

They are the "cream of the crop" of the indy b/ds right now.  There are probably some smaller ones that have a good culture, but it's a risk because scale is becoming more important in this industry.

They are both privately held and have scale.  Which means you aren't at the whim of PE money or god forbid publicly traded.  The scale part means the nickels and dimes will be less because the b/d itself can negotiate better terms with clearing firms, technology providers, E&O, etc.

RJ used to be on the short list of top notch indy b/ds.  But the last few years, people there have been seeing a change in culture.  Less value placed on the FA, and more about the dollars for the firm.  Screwing people over, etc.  I'd probably still look at them if I had the luxury of time, but I'd go in with my eyes wide open.  They are also publicly traded, of course.

Cetera's problems are well documented throughout the industry.  Just do a Google search.  

There are tons of people on here that are with LPL. And while they aren't terrible...they are hardly the best.  Lots of nickels and dimes.  Tech is behind apparently.  But most importantly...service sucks.  You're going to be a number at any firm with 10,000+ advisors.

Like I said, Commonwealth and Cambridge are large enough to have scale...but not so large that you're going to call India for support.  

Avoid the insurance owned b/ds that "pretend" to be indy b/ds (AXA, Voya, Lincoln Financial, etc.).

In the indy world, you have to look at the whole picture.  95% payouts are NOT 95% payouts.  If you don't know what ticket charges and program fees are...learn that NOW.  Because 95% turns into 75% REAL QUICKLY.  And then you get to pay your own bills on top of it.  

And screw the transition money.  You're talking peanuts in the grand scheme of things.  I'd go with the better firm for 10% T-12 over a firm that would give me 80%.  Over a career, that up front money is nothing.  If that's what you're after...just go to a wire and get 300%.  
My posts are for abrasive entertainment only. Nothing posted is investment, legal, tax or any type of advice, nor is anything mentioned true or even based on real events. Posts are complete fiction.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Grimes Quote  Post ReplyReply Direct Link To This Post Posted: Aug/13/2020 at 11:47pm
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Edited by Grimes - Aug/17/2020 at 2:57pm
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helado View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote helado Quote  Post ReplyReply Direct Link To This Post Posted: Aug/14/2020 at 12:04am
Google "Cetera Bankruptcy."

I'm not with any firm I've mentioned.  But if I had to pick one, it would likely be Commonwealth, or my current b/d (it's a top 20 indy...don't want to name it for privacy reasons).   

If you want to chat about it, PM me.  But you can't go wrong with looking at the ones I listed, in addition to your current search.

By the way, the advice of going RIA only if you can move your entire book to fees (or affiliate with PKS like Wet said) is also pretty viable.  
My posts are for abrasive entertainment only. Nothing posted is investment, legal, tax or any type of advice, nor is anything mentioned true or even based on real events. Posts are complete fiction.
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Grimes View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Grimes Quote  Post ReplyReply Direct Link To This Post Posted: Aug/14/2020 at 12:10am
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Edited by Grimes - Aug/17/2020 at 2:58pm
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helado View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote helado Quote  Post ReplyReply Direct Link To This Post Posted: Aug/14/2020 at 1:22am
I don't mean any offense by this man...

But you haven't brought yourself up to speed enough to know what you want.

You are the prospect that buys a 10 year indexed annuity thinking it's guaranteed to get at least 8% each year.  Or the prospect that "has mutuals in my 501."

Spend some time learning before you make a jump.  Because otherwise you're flying blind.
My posts are for abrasive entertainment only. Nothing posted is investment, legal, tax or any type of advice, nor is anything mentioned true or even based on real events. Posts are complete fiction.
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Hacksaw View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Hacksaw Quote  Post ReplyReply Direct Link To This Post Posted: Aug/14/2020 at 9:31am
Do a ton of research and look into RIAs or hybrid offices in your area. Do an SEC firm search with your zip code and you can see the size of those firms. There might be a roll-up firm in your area (one that oversees smaller producers for a cut of their production).
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missionshooter View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote missionshooter Quote  Post ReplyReply Direct Link To This Post Posted: Aug/14/2020 at 9:34am
Why not call up an EX-JONSIE that is now with LPL and ask them ALL ABOUT LPL?

"How would I ever find someone like that"?

   Go to Brokercheck and look at their background. You will be able to see the previous firms they were with.


I agree with Helado and Duggan, you need to do some more research. You are as Helado describes.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote B24 Quote  Post ReplyReply Direct Link To This Post Posted: Aug/14/2020 at 9:38am
Grimes, here's the thing with going RIA vs. an indy B/D...

If you go the BD route, you are perpetually dealing with lower payouts and the bullshit that goes along with it. Also, there's a good chance 5 years down the road you regret your choice and move AGAIN.

However, if you go RIA, you have much more flexibility. You have the option of doing commish business until you can transition everyone (or enough) to fees and walk away from the B/D forever. Also, you can pay for as much or as little support as you want. You can have zero support and have 100% payout. Or, you can start with 100% payout and then pay for backoffice support to the degree that you need it. There are plenty of firms that do this ala cart...back office support, compliance, trading, etc. You can pay for each thing if you need it. And you don't start with the bullshit 65% payout or whatever.

Look, if you're making the leap, you owe it to yourself and your clients to make the next move ONCE.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote apac Quote  Post ReplyReply Direct Link To This Post Posted: Aug/14/2020 at 10:57am
Originally posted by helado helado wrote:

I was just busting his balls.  Some people call them a regional but that's not really accurate.  They are their own animal.  Similar feel to a regional, but similar scale to a wire.  

the Mcdonalds of financial services
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Post Options Post Options   Thanks (0) Thanks(0)   Quote bc2051 Quote  Post ReplyReply Direct Link To This Post Posted: Aug/14/2020 at 12:31pm
Originally posted by apac apac wrote:

Originally posted by helado helado wrote:

I was just busting his balls.  Some people call them a regional but that's not really accurate.  They are their own animal.  Similar feel to a regional, but similar scale to a wire.  


the Mcdonalds of financial services


Serving up more Big Macs than jack and apac put together
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Moraen Quote  Post ReplyReply Direct Link To This Post Posted: Aug/14/2020 at 12:35pm
Originally posted by bc2051 bc2051 wrote:

Originally posted by apac apac wrote:

Originally posted by helado helado wrote:

I was just busting his balls.  Some people call them a regional but that's not really accurate.  They are their own animal.  Similar feel to a regional, but similar scale to a wire.  


the Mcdonalds of financial services


Serving up more Big Macs than jack and apac put together


LOL

People make fun of Jones, but I bet they help more "every day people" than almost any other firm, and probably most small practices collectively.


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Post Options Post Options   Thanks (0) Thanks(0)   Quote Smithbarney88 Quote  Post ReplyReply Direct Link To This Post Posted: Aug/14/2020 at 1:15pm
I went corporate RIA with LPL. However, coming from my old place at the time I had nowhere near the amount you have in managed money. 

I have zero complaints with LPL, however I may not be the best example as I probably don't know what I am missing on the full RIA side of things.

Currently, I am just trying to keep my head down and grow the planning with advisory business to 50 million as fast as possible then look at switching. 


Edited by Smithbarney88 - Aug/14/2020 at 1:18pm
100% of my posts are fiction. All for humor. Enjoy!
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Grimes Quote  Post ReplyReply Direct Link To This Post Posted: Aug/14/2020 at 9:51pm
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Edited by Grimes - Aug/17/2020 at 2:58pm
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Post Options Post Options   Thanks (0) Thanks(0)   Quote newbieRIA Quote  Post ReplyReply Direct Link To This Post Posted: Aug/14/2020 at 10:29pm
If you like anal sex with no lube by all means go to cetera.  They have like 3 sides to the broker dealer side.  One for institutions (banks), one for regular financial advisors, one for the CPAs that want to be adviusors.  My only experience is with Cetera financial specialist which is the cpa side.

when I first got on I was outraged at the limited managed accounts options we had.  I think it has gotten better cause I haven't been with them in a while.  At the time the only one where the advisor had some say was the MWA program. The program was .45 which is fucking nuts on top of that they weren't offering institutional share classes offered for the managed account.  They where using A shares and taking the 12b-1 for the firm.  So the realty of this was the firm was making .7 per managed account.  The funny thing the other subsidiaries of cetera broker dealer where getting charge like .35 instead. They where purposely fucking the cpas over.  They winded up getting sanctioned by finra for the 12b-1 thing. 
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