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TCook View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote TCook Quote  Post ReplyReply Direct Link To This Post Posted: Oct/04/2022 at 7:27am
Originally posted by helado helado wrote:

Originally posted by TCook TCook wrote:

Not sure about an across the board 95/3, but we are extremely competitive.

Why not?  

Why don't you consult with your partners / upper management and tell them you have a chance to be an ongoing active participant on a forum that could double up your AUM over time, and you don't have to pay a thing for it.

If you get business from being here, your acquisition cost is $0.  What is it normally?  I bet it's a 5 figure number.  

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 View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote BigCheese Quote  Post ReplyReply Direct Link To This Post Posted: Oct/04/2022 at 9:42am
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 View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Moraen Quote  Post ReplyReply Direct Link To This Post Posted: Oct/04/2022 at 9:55am
Originally posted by richchick richchick wrote:

Originally posted by helado helado wrote:

Originally posted by TCook TCook wrote:

Not sure about an across the board 95/3, but we are extremely competitive.

Why not?  

Why don't you consult with your partners / upper management and tell them you have a chance to be an ongoing active participant on a forum that could double up your AUM over time, and you don't have to pay a thing for it.

If you get business from being here, your acquisition cost is $0.  What is it normally?  I bet it's a 5 figure number.  

If you all recall, I suggested a group AH LPL trip to the 4 seasons and no one took me seriously.  

LOL
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 View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote knuk Quote  Post ReplyReply Direct Link To This Post Posted: Oct/04/2022 at 10:05am
Originally posted by WarPig WarPig wrote:

All this slave talk is exhausting.

LOL
Insert signature here
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Conrad Dobler View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Conrad Dobler Quote  Post ReplyReply Direct Link To This Post Posted: Oct/04/2022 at 10:11am
Originally posted by freebird freebird wrote:

Originally posted by Conrad Dobler Conrad Dobler wrote:

Originally posted by Wet_Blanket Wet_Blanket wrote:

Originally posted by helado helado wrote:

Originally posted by freebird freebird wrote:

I personally vouch for TCook.  Be nice to him 

You can't vouch for people when you yourself have no credibility.  LOL
LOL

Tough, but fair. LOL

Did you accidentally click here instead of politics?

No, but are you stalking me to see where I post? LOL
Call me Dirt, Dirt Diggler.
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BigCheese View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote BigCheese Quote  Post ReplyReply Direct Link To This Post Posted: Oct/04/2022 at 11:12am
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 View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote TCook Quote  Post ReplyReply Direct Link To This Post Posted: Oct/04/2022 at 11:27am
Originally posted by BigCheese BigCheese wrote:

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.

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 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: Oct/04/2022 at 11:27am
Originally posted by BigCheese BigCheese wrote:

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...

Cheese, You should have stuck with Edward D Jones.  

Some things never go out of style.  


"We probably have a 98% close rate." - Circlejerk 7-28-22

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TCook View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote TCook Quote  Post ReplyReply Direct Link To This Post Posted: Oct/04/2022 at 11:28am
Originally posted by TCook TCook wrote:

Originally posted by BigCheese BigCheese wrote:

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.

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.

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 View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote WarPig Quote  Post ReplyReply Direct Link To This Post Posted: Oct/04/2022 at 11:30am
Originally posted by TCook TCook wrote:

Originally posted by TCook TCook wrote:

Originally posted by BigCheese BigCheese wrote:

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.

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.

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

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 View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote richchick Quote  Post ReplyReply Direct Link To This Post Posted: Oct/04/2022 at 1:11pm
Originally posted by WarPig WarPig wrote:

Originally posted by TCook TCook wrote:

Originally posted by TCook TCook wrote:

Originally posted by BigCheese BigCheese wrote:

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.

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.

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

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.

Also don’t post too many times cause Cheese wants action action action not just words. 
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BigCheese View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote BigCheese Quote  Post ReplyReply Direct Link To This Post Posted: Oct/04/2022 at 1:55pm
Cmon now RC...

Back to the drawing board? There's a fellow on here you should talk to...
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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: Oct/04/2022 at 7:52pm
Duplicate.

Edited by helado - Oct/04/2022 at 7:54pm
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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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: Oct/04/2022 at 7:54pm
Originally posted by TCook TCook wrote:

Originally posted by helado helado wrote:

Originally posted by TCook TCook wrote:

Not sure about an across the board 95/3, but we are extremely competitive.

Why not?  

Why don't you consult with your partners / upper management and tell them you have a chance to be an ongoing active participant on a forum that could double up your AUM over time, and you don't have to pay a thing for it.

If you get business from being here, your acquisition cost is $0.  What is it normally?  I bet it's a 5 figure number.  

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.

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.
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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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: Oct/04/2022 at 8:01pm
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?
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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