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AdvisorHere View Drop Down
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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?
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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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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: Jan/24/2018 at 6:39pm
What b/d are you with?  And what area of the country?
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: 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.
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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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 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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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 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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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: 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.
 
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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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 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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Post Options Post Options   Thanks (0) Thanks(0)   Quote bc2051 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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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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