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TCook
Rookie Joined: Oct/03/2022 Location: Omaha, NE Status: Offline Points: 16 |
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Good point, and will take it up. Would need to be for a certain size advisor - would not be profitable for a $200k producer - but an AH deal sounds like a great idea, as long as there are some guardrails.
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BigCheese
Senior Member Joined: Feb/28/2012 Status: Offline Points: 2464 |
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So you only clear through LPL? That's a negative if true. The multi-custodial arrangement is ideal but with LPL they take 5bps if you go off their platform.
Nothing more than a revenue grab...no benefit, and the supposed oversight responsibilities are a joke. Full disclosure. I was with LPL from 2006-2020. Now with TD/Schwab solely and the aggregator has an LPL b/d relationship as well. Assume you don't offer planning or investment services with that skinny margin.
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Moraen
Admin Group Resident Sage Joined: Mar/09/2010 Status: Offline Points: 30786 |
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I come in peace. I didn’t bring artillery. But I’m pleading with you, with tears in my eyes: If you fuck with me, I’ll kill you all. - General James Mattis
Fiduciary as Fuck - iMo |
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knuk
Senior Member Joined: May/20/2010 Location: Canada Status: Offline Points: 7277 |
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Insert signature here
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Conrad Dobler
Platinum Member Joined: Mar/11/2010 Status: Offline Points: 42933 |
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No, but are you stalking me to see where I post?
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BigCheese
Senior Member Joined: Feb/28/2012 Status: Offline Points: 2464 |
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Honestly...the b/d scenario is so full of gotchas....
Having gone through it, and now solely RIA, the only scenario I see where the client is truly front and center is one without the middlemen... They all have their warts, its a question of which wart can you live with. The RIA space it's spread on cash and custody revenue...our clients have no idea how much they really pay...and with all the conflicts in the b/d space...I would be very careful opening up the forum constituents to that cluster...
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TCook
Rookie Joined: Oct/03/2022 Location: Omaha, NE Status: Offline Points: 16 |
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Yes, we clear through LPL only. We do not have in house planning, we do have investment services, albeit non-traditional, where DFA, BlackRock, Vanguard, AF, Clark & First Trust create and run models if advisors are interested in outsourcing. Those programs are more expensive than SAM (although no manager overlay fee), so there is definitely a trade off for ease of use. Not being multi-custodial does have its advantages, specific to transition dollars. The hybrids can take a large haircut on transition money compared to the corporate RIA only shops, sometimes as much as 60% reduction.
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missionshooter
Senior Member Joined: Feb/12/2014 Status: Offline Points: 6136 |
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Cheese, You should have stuck with Edward D Jones. Some things never go out of style.
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Our purpose is to partner for a positive impact- to improve the lives of our clients and colleagues, and together, better our communities and society.
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TCook
Rookie Joined: Oct/03/2022 Location: Omaha, NE Status: Offline Points: 16 |
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And by haircut I mean the BD doesn't pay out as much since assets will be held off platform, not that the hybrid is taking a cut
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WarPig
Senior Member Joined: Dec/12/2019 Status: Online Points: 9706 |
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If you want to win Cheese over .. just talk about how bad Jones is or how Covid scared you into your basement for 2 years.
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richchick
Senior Member Joined: Mar/11/2010 Status: Offline Points: 2500 |
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Also don’t post too many times cause Cheese wants action action action not just words.
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BigCheese
Senior Member Joined: Feb/28/2012 Status: Offline Points: 2464 |
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Cmon now RC...
Back to the drawing board? There's a fellow on here you should talk to...
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Duplicate.
Edited by helado - Oct/04/2022 at 7:54pm |
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I thought of that afterwards, and that's cool of you to take under consideration. Maybe some type of juicier deal than we'd already get. Even 1 or 2% on grid or 1 or 2 bps on program fees. That would be a nice gesture. And you entrenching yourself here (assuming you guys area reputable group, which I'm sure you are) will eventually get your recruits, I'm sure. AH is a very unique place on the internet for our industry.
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Hey TCook,
I think you already addressed this, but I'm curious...Let's say I'm a $1mm producer (if that matters to answer my question). Let's pretend 50% of my assets are fee-based. Walk us through hypothetical numbers.. I have $100k account that is in C-shares. So revenue to the grid is $1,000. How much hits my bank account? Are there ticket charges? I have a $100k fee-based account. I managed the money myself using Vanguard index funds or Blackrock ETFs, etc. I charge the client a TOTAL fee of 1.00% (i.e. so if there is a 5 bps program fee, it's built into the 1% already, so I guess I would be charging .95% and then adding 5 bps to get to 1.00%). How much here hits my bank account? Are there ticket charges? How about discretion (not for managers like Russell) if I want to run my own models? How do I qualify for that, and is there any change to the fee-based payout if it's discretionary?
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