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AdvisorHere View Drop Down
Greenhorns
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    Posted: Jan/24/2018 at 3:14pm
I have been in this industry for 6 years. Lately, I received a letter from my broker dealer office that I will have to reach a certain volume by 1-1-2019 and 1-1-2020 in order to stay with the firm. Even though I may be able to make it pass 1-1-2019, there seems to be no way in the world I will be able to reach the target point of 1-1-2020. Therefore, they will terminate my contract in all likelihoods by 1-1-2020.

What options do I have under the situation? I don't want to lose the client base that I have been working so hard to build in the past 6 years. If they terminate my contract, does that mean I will lose all my accounts and the works that I have done in the past 6 years will become nothing?

I am thinking if it is possible to move to another firm. But I really do not know much about the industry and I do not even know where to start to make inquires if any other firms out there will take me.

Any advice will be very appreciated.
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luvindy View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote luvindy Quote  Post ReplyReply Direct Link To This Post Posted: Jan/24/2018 at 3:36pm
What are your numbers?
8/31/12,Sportsfreak:
"If Barak wins this election, or appears to be clearly winning, we are all fucked. Market will tank big time."
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5/23/13 UC:Dow 20k before 20% crrectn Dow 15,
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Hacksaw Quote  Post ReplyReply Direct Link To This Post Posted: Jan/24/2018 at 3:39pm
I'm so confused.  You've been at this 6 years, but you don't know much about it?

What are your current numbers, and where do you have to be?
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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: Jan/24/2018 at 3:48pm
Originally posted by luvindy luvindy wrote:

What are your numbers?


x2 . Need more information to help you.

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AdvisorHere View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote AdvisorHere Quote  Post ReplyReply Direct Link To This Post Posted: Jan/24/2018 at 4:44pm
I am not a full-time advisor. I am a tax accountant and mainly provide retirement planning service to my tax clients on the side. So I am not fully involved in the financial advising industry. And that is the reason I do not really know the industry well. As for the numbers? Do you mean the account volume that I manage? Now the total assets amounts of all my clients is about 750K. I think I can make it to 1m by 1-1-2019 which is the bar set by my broker dealer firm to make it pass that date. But they will raise the bar to 2.5m by 1-1-2020 and there is no way in the world I will be able to reach that number.
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Iamlegend View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Iamlegend Quote  Post ReplyReply Direct Link To This Post Posted: Jan/24/2018 at 4:55pm
Sell your accounts to another advisor and just refer people to him for a fee split going forward.
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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: Jan/24/2018 at 5:06pm
Originally posted by Iamlegend Iamlegend wrote:

Sell your accounts to another advisor and just refer people to him for a fee split going forward.

I would suggest this.  

At $750k managed, you could probably make more money off an advisor referring you tax work, than you are currently making on these clients.
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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: Jan/24/2018 at 5:08pm
Well, heres the thing. E&O costs almost 4k a year at LPL. Add in technology and all the other BS fees and state registrations and you wouldnt even be profitable at LPL unless you were charging them 2%.

I think you should partner with another advisor and let him pay you a fee in the form of a revenue sharing agreement. I'm sure there is an advisor who would do this unless you had 800 households or something.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote MrGreen Quote  Post ReplyReply Direct Link To This Post Posted: Jan/24/2018 at 5:15pm
Originally posted by AdvisorHere AdvisorHere wrote:

I am not a full-time advisor. I am a tax accountant and mainly provide retirement planning service to my tax clients on the side. So I am not fully involved in the financial advising industry. And that is the reason I do not really know the industry well. As for the numbers? Do you mean the account volume that I manage? Now the total assets amounts of all my clients is about 750K. I think I can make it to 1m by 1-1-2019 which is the bar set by my broker dealer firm to make it pass that date. But they will raise the bar to 2.5m by 1-1-2020 and there is no way in the world I will be able to reach that number.
 
I'd imagine that you are paying more in B/D costs, insurance, etc, to justify having this an added service.
 
Maybe find an office willing to merge you into their practice for a small cut.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote AdvisorHere Quote  Post ReplyReply Direct Link To This Post Posted: Jan/24/2018 at 5:30pm
Thank you for the advice. So looks like the consensus is to partner with another advisor, refer my clients to him and get a share of the revenue. I will definitely explore this option.

Just one question though, what liability will I assume in such a partnership and referral arrangement? In case the other advisor makes a mistake and got sued by a client that I refer, will I become part of the lawsuit too?


Edited by AdvisorHere - Jan/24/2018 at 5:31pm
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Guests Quote  Post ReplyReply Direct Link To This Post Posted: Jan/24/2018 at 6:39pm
What b/d are you with?  And what area of the country?
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Guests Quote  Post ReplyReply Direct Link To This Post Posted: Jan/24/2018 at 6:40pm
Do you realize that if you are doing taxes as your main goal, and you've been licensed as an advisor for 6 years, you've missed winning the lottery?  There is no reason you couldn't easily have $25mm plus. 
Find an FA to work with you and make it a point to bring in the assets of your tax clients.
 
Thank me in 5 years.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote AdvisorHere Quote  Post ReplyReply Direct Link To This Post Posted: Jan/24/2018 at 6:55pm
Originally posted by helado helado wrote:

What b/d are you with?  And what area of the country?

California


Edited by AdvisorHere - Feb/06/2018 at 12:45pm
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Post Options Post Options   Thanks (0) Thanks(0)   Quote AdvisorHere Quote  Post ReplyReply Direct Link To This Post Posted: Jan/24/2018 at 6:58pm
Originally posted by helado helado wrote:

Do you realize that if you are doing taxes as your main goal, and you've been licensed as an advisor for 6 years, you've missed winning the lottery?  There is no reason you couldn't easily have $25mm plus. 
Find an FA to work with you and make it a point to bring in the assets of your tax clients.
 
Thank me in 5 years.

I have not really promoted myself. I only introduce myself to my tax clients that I am also a financial advisor when I find that retirement contribution can be beneficial to their tax situation. So a lot of tax clients do not even know I do financial advising too. I know I have missed a lot of opportunities in the rollover business.


Edited by AdvisorHere - Jan/24/2018 at 6:59pm
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Guests Quote  Post ReplyReply Direct Link To This Post Posted: Jan/24/2018 at 7:02pm
AdvisorHere,
 
Seriously, reach out to some local FAs (that are independent) and talk to them about your situation.  Let them know you'd like to come to their broker/dealer, bring your clients, and team up. 
 
Let him/her coach you on how to uncover opportunities.  Make a deal somewhere in the neighborhood of you send clients to him, he does all the legwork and services the investment end, and you split everything 50/50.
 
Seriously, you will have $25 - $50 million AUM in 5 years and be making as much, or more, from this side practice than you are from your tax business.
 
You just need a little direction on uncovering the opportunities, and someone to close the business and service is so you can continue to focus on your primary business for now.
 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote AdvisorHere Quote  Post ReplyReply Direct Link To This Post Posted: Feb/05/2018 at 6:06pm
Does anyone work with annuity here? I want to know the commission payout of selling a basic annuity, one that has fixed interest rate and with principal protection (either 3 years or 5 years). 

Let's say if I have a client who invests $100,000 in such a annuity, about how much commission I will be able to make? And would it be a lump sum commission or paid yearly for the duration of the annuity?

I have just got my insurance license and I have not sold an annuity before.

Thank you in advance.


Edited by AdvisorHere - Feb/05/2018 at 7:27pm
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Guests View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Guests Quote  Post ReplyReply Direct Link To This Post Posted: Feb/05/2018 at 6:09pm
Guess you’re not taking the advice here? Seems like you’re doing it for the right reasons
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Fitness1983 Quote  Post ReplyReply Direct Link To This Post Posted: Feb/05/2018 at 6:19pm
Originally posted by AdvisorHere AdvisorHere wrote:

Does anyone work with annuity here? I want to know the commission payout of selling a basic annuity, one that has fixed interest rate and with principal protection (either 3 years or 5 years). 

Let's say if I have a client who invests $100,000 in such a annuity, about how much commission I will be able to make? And would it be a lump sum commission or paid yearly for the duration of the annuity?

I have just got my insurance license and I have sold an annuity before.

Thank you in advance.



You have sold an annuity before, you say.

You sure?
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AdvisorHere View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote AdvisorHere Quote  Post ReplyReply Direct Link To This Post Posted: Feb/05/2018 at 7:31pm
It was a typo.

I have not sold an annuity before.

The reason I am asking this question is that I have a client who approached me for annuity. As I have said, I have just got my insurance license and have never sold annuity before. In order to service him, I will have a lot of catch-up to do, such as doing a lot of studying in different products. And it just happens that now is the most busy period of the year to me since I am a tax accountant. Obviously, he is not going to wait until after the tax season. Therefore, I want to know the 'reward' in order to decide whether I should allocate some of my scarce time now to take his business. 


Edited by AdvisorHere - Feb/05/2018 at 7:37pm
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Fitness1983 View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Fitness1983 Quote  Post ReplyReply Direct Link To This Post Posted: Feb/05/2018 at 7:34pm
Geeze
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