New Here
Printed From: Advisorheads
Category: Introductions
Forum Name: Greenhorn Introductions
Forum Description: MAKE YOUR FIRST POST HERE!
URL: http://www.advisorheads.com/forum_posts.asp?TID=19826
Printed Date: Mar/26/2026 at 6:44pm
Software Version: Web Wiz Forums 12.03 - http://www.webwizforums.com
Topic: New Here
Posted By: TCook
Subject: New Here
Date Posted: Oct/03/2022 at 11:22am
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Hey all, I represent a Large Enterprise - think OSJ with the supervision outsourced to the home office/producer group - with a large independent BD. Hoping to connect with folks that are conducting due diligence as we provide additional resources beyond what our BD provides, while improving economics for those that choose to affiliate. We are fiercely independent - you have your own branding, own your clients, etc., we are a behind the scenes resource that will help with onboarding, transition/repapering, and ongoing support within a community of like minded advisors, without the typical corresponding expense for a branch.
Would love to chat with anyone that is interested in hearing more.
Thanks all, and glad to be part of the community!
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Replies:
Posted By: luvindy
Date Posted: Oct/03/2022 at 11:42am
In first!
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8/31/12,Sportsfreak:
"If Barak wins this election, or appears to be clearly winning, we are all fucked. Market will tank big time."
Dow 13,090 S&P 1406
5/23/13 UC:Dow 20k before 20% crrectn Dow 15,
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Posted By: freebird
Date Posted: Oct/03/2022 at 12:24pm
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I personally vouch for TCook. Be nice to him
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Posted By: BigCheese
Date Posted: Oct/03/2022 at 12:33pm
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Sounds like a bunch of other aggregators...hate to be a downer. I am with a great firm out of Houston and couldn't be happier as an IAR.
So much horeshit in this industry...its tought to find a good one...but if you can find the diamond, they are worth it.
So T, tell us why your firm is worthy?
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Posted By: missionshooter
Date Posted: Oct/03/2022 at 1:03pm
T-Cookie. Tell us more babe
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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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Posted By: TCook
Date Posted: Oct/03/2022 at 2:20pm
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Allright - In my opinion, you have two evaluations for a group like ours. The group itself, and the BD, and both need to be vetted independently in my opinion. We have been at the BD for three years, moved from a mid-tier indy that was/is bleeding advisors. Point is, I have 20 years experience with a sub par BD, and now a great BD, so I have lived both experiences.
BD Evaluation- Publicly traded - check
- Fiercely independent - check
- Self clearing - check
- Strong Tech, and constant investment in tech ongoing - check
- Financially solid - check
- Good culture - check, and significantly improving over the last 6-7 years - looked at this BD 11+ years ago, and noted huge improvements
- Strong economics - as it relates to Transition Assistance - check
- Service - despite the word on the street, solid service has been my experience, and if service is ever lacking, enter our group
Group Evaluation - Additional staff to support advisors above and beyond the BD - white glove service if you will
- Full transition team
- Full time wealth management consultant
- Ongoing service and support indefinitely post transition
- Improved ongoing economics
- Community of advisors - currently we work with 300 independent advisors nationwide - ability to participate - never mandatory - in events and advisor get togethers
- Release from group - we 100% release advisors if they are not happy, unlike some groups.
To BigCheese's point, there is a tremendous amount of horseshit out there as it relates to groups that promise the world, and you should always beware - I go head to head with these groups regularly, and filtering out the good from the bad can be a challenge. There are also a lot of great groups out there as well, but what sets us apart is that we don't represent an increased ongoing expense to be a part of the group, rather our affiliated advisors retain additional dollars. In the simplest way, strong industry leading indy BD, with additional help and resources, with improved payouts. More help and more retained dollars = better experience, higher retention, referrals from advisors and a better experience. The BD is not perfect, but does so much right compared to what we were used to and we have had a great experience and are extremely pleased with our choice. |
Posted By: Hacksaw
Date Posted: Oct/03/2022 at 2:35pm
 TCook wrote:
Allright - In my opinion, you have two evaluations for a group like ours. The group itself, and the BD, and both need to be vetted independently in my opinion. We have been at the BD for three years, moved from a mid-tier indy that was/is bleeding advisors. Point is, I have 20 years experience with a sub par BD, and now a great BD, so I have lived both experiences.
BD Evaluation- Publicly traded - check
- Fiercely independent - check
- Self clearing - check
- Strong Tech, and constant investment in tech ongoing - check
- Financially solid - check
- Good culture - check, and significantly improving over the last 6-7 years - looked at this BD 11+ years ago, and noted huge improvements
- Strong economics - as it relates to Transition Assistance - check
- Service - despite the word on the street, solid service has been my experience, and if service is ever lacking, enter our group
Group Evaluation - Additional staff to support advisors above and beyond the BD - white glove service if you will
- Full transition team
- Full time wealth management consultant
- Ongoing service and support indefinitely post transition
- Improved ongoing economics
- Community of advisors - currently we work with 300 independent advisors nationwide - ability to participate - never mandatory - in events and advisor get togethers
- Release from group - we 100% release advisors if they are not happy, unlike some groups.
To BigCheese's point, there is a tremendous amount of horseshit out there as it relates to groups that promise the world, and you should always beware - I go head to head with these groups regularly, and filtering out the good from the bad can be a challenge. There are also a lot of great groups out there as well, but what sets us apart is that we don't represent an increased ongoing expense to be a part of the group, rather our affiliated advisors retain additional dollars. In the simplest way, strong industry leading indy BD, with additional help and resources, with improved payouts. More help and more retained dollars = better experience, higher retention, referrals from advisors and a better experience. The BD is not perfect, but does so much right compared to what we were used to and we have had a great experience and are extremely pleased with our choice. |
What cut do you guys take for your service?
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Posted By: TCook
Date Posted: Oct/03/2022 at 2:44pm
Depends on T-12, but a typical payout will range anywhere from 91% up to 95%, and is negotiable. Below would be an idea of where we would typically land, depending on business mix, but fully negotiable.$250k - 91% $500k - 92% $750k - 93% $1 Million - 93.5% $1.5 Million - 94% $2 Million - 95% |
Posted By: advisorman
Date Posted: Oct/03/2022 at 2:44pm
LPL
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King of sarcasm and speling
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Posted By: TCook
Date Posted: Oct/03/2022 at 2:52pm
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Good solve advisorman - important to note that we have flat payouts, not production bonus payouts, so typically 1-1.5% higher than the street direct.
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Posted By: Hacksaw
Date Posted: Oct/03/2022 at 3:14pm
TCook wrote:
Depends on T-12, but a typical payout will range anywhere from 91% up to 95%, and is negotiable. Below would be an idea of where we would typically land, depending on business mix, but fully negotiable.$250k - 91% $500k - 92% $750k - 93% $1 Million - 93.5% $1.5 Million - 94% $2 Million - 95% |
Is that a % of what you receive? IE - If you guys get 95%, and at $1mm you payout 93.5%, the advisor gets 88.825%?
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Posted By: TCook
Date Posted: Oct/03/2022 at 3:28pm
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No, that would be a net payout to you, so in your example, at $1 Million with a 93.5% payout you would receive $935k of revenue. Our payout that is higher than that and we retain the difference. 93.5% = 93.5%!
I would also mention that the admin pricing on advisor as portfolio manager is very competitive as well. We compete with firms that charge anywhere from 10-30 basis points for program fees on the advisor as port manager program, when we are at 3-8 basis points. If an advisor has $100 Million in advisory that is a significant difference in higher retained revenue, decreased cost to the client or both. We have some situations were other BD's may pay $300k higher in transition dollars, but their advisory charges are $200-$300k higher, annually. Pretty simple math to determine the improvement over a 10 year period of time. That higher up front check can be very costly.
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Posted By: Guests
Date Posted: Oct/03/2022 at 3:38pm
TCook wrote:
No, that would be a net payout to you, so in your example, at $1 Million with a 93.5% payout you would receive $935k of revenue. Our payout that is higher than that and we retain the difference. 93.5% = 93.5%!
I would also mention that the admin pricing on advisor as portfolio manager is very competitive as well. We compete with firms that charge anywhere from 10-30 basis points for program fees on the advisor as port manager program, when we are at 3-8 basis points. If an advisor has $100 Million in advisory that is a significant difference in higher retained revenue, decreased cost to the client or both. We have some situations were other BD's may pay $300k higher in transition dollars, but their advisory charges are $200-$300k higher, annually. Pretty simple math to determine the improvement over a 10 year period of time. That higher up front check can be very costly. |
Give everyone from AH a 95% payout with a 3 bps program fee and you can be the official LPL OSJ of Advisorheads.
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Posted By: Guests
Date Posted: Oct/03/2022 at 3:40pm
freebird wrote:
I personally vouch for TCook. Be nice to him |
You can't vouch for people when you yourself have no credibility.  |
Posted By: freebird
Date Posted: Oct/03/2022 at 3:45pm
helado wrote:
freebird wrote:
I personally vouch for TCook. Be nice to him |
You can't vouch for people when you yourself have no credibility. |
Hey T- this is the king of AH and also the biggest asshole
Slay him and others will fall in line |
Posted By: TCook
Date Posted: Oct/03/2022 at 3:46pm
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Not sure about an across the board 95/3, but we are extremely competitive.
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Posted By: Hacksaw
Date Posted: Oct/03/2022 at 3:56pm
TCook wrote:
No, that would be a net payout to you, so in your example, at $1 Million with a 93.5% payout you would receive $935k of revenue. Our payout that is higher than that and we retain the difference. 93.5% = 93.5%!
I would also mention that the admin pricing on advisor as portfolio manager is very competitive as well. We compete with firms that charge anywhere from 10-30 basis points for program fees on the advisor as port manager program, when we are at 3-8 basis points. If an advisor has $100 Million in advisory that is a significant difference in higher retained revenue, decreased cost to the client or both. We have some situations were other BD's may pay $300k higher in transition dollars, but their advisory charges are $200-$300k higher, annually. Pretty simple math to determine the improvement over a 10 year period of time. That higher up front check can be very costly. |
So you're saying that for every $1 my client pays, I would receive $.935?
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Posted By: TCook
Date Posted: Oct/03/2022 at 3:58pm
Posted By: Hacksaw
Date Posted: Oct/03/2022 at 4:01pm
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Interesting. I wouldn't think there is enough profit in 6.5 bps for both you guys and the BD.
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Posted By: missionshooter
Date Posted: Oct/03/2022 at 4:04pm
Hacksaw wrote:
TCook wrote:
No, that would be a net payout to you, so in your example, at $1 Million with a 93.5% payout you would receive $935k of revenue. Our payout that is higher than that and we retain the difference. 93.5% = 93.5%!
I would also mention that the admin pricing on advisor as portfolio manager is very competitive as well. We compete with firms that charge anywhere from 10-30 basis points for program fees on the advisor as port manager program, when we are at 3-8 basis points. If an advisor has $100 Million in advisory that is a significant difference in higher retained revenue, decreased cost to the client or both. We have some situations were other BD's may pay $300k higher in transition dollars, but their advisory charges are $200-$300k higher, annually. Pretty simple math to determine the improvement over a 10 year period of time. That higher up front check can be very costly. |
So you're saying that for every $1 my client pays, I would receive $.935? |
Where is the SAM/SWM program fee?
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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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Posted By: Wet_Blanket
Date Posted: Oct/03/2022 at 4:32pm
Posted By: Conrad Dobler
Date Posted: Oct/03/2022 at 4:32pm
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Tough, but fair.
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No matter how bad it might be, your morning is going better than Travis Davis’.
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Posted By: TCook
Date Posted: Oct/03/2022 at 4:35pm
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Hacksaw - it is a thin margin model for both us and the BD, but it works. We realize that scale at the group level allows for those thin margins, while also protecting those margins over the long term. The BD has $1.2T, and our group works with $12B, so with those size numbers at both levels we are able to work skinny.
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Posted By: freebird
Date Posted: Oct/03/2022 at 4:41pm
Conrad Dobler wrote:
Tough, but fair. |
Did you accidentally click here instead of politics?
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Posted By: TCook
Date Posted: Oct/03/2022 at 4:50pm
missionshooter wrote:
Hacksaw wrote:
TCook wrote:
No, that would be a net payout to you, so in your example, at $1 Million with a 93.5% payout you would receive $935k of revenue. Our payout that is higher than that and we retain the difference. 93.5% = 93.5%!
I would also mention that the admin pricing on advisor as portfolio manager is very competitive as well. We compete with firms that charge anywhere from 10-30 basis points for program fees on the advisor as port manager program, when we are at 3-8 basis points. If an advisor has $100 Million in advisory that is a significant difference in higher retained revenue, decreased cost to the client or both. We have some situations were other BD's may pay $300k higher in transition dollars, but their advisory charges are $200-$300k higher, annually. Pretty simple math to determine the improvement over a 10 year period of time. That higher up front check can be very costly. |
So you're saying that for every $1 my client pays, I would receive $.935? |
Where is the SAM/SWM program fee?
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We are a corporate RIA affiliated, so we use SAM only. Its 3-8 depending on AUM, and we do have some flexibility on the flat SAM pricing. Would need to discuss to come up with something that works for everyone.
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Posted By: Hacksaw
Date Posted: Oct/03/2022 at 4:54pm
TCook wrote:
Hacksaw - it is a thin margin model for both us and the BD, but it works. We realize that scale at the group level allows for those thin margins, while also protecting those margins over the long term. The BD has $1.2T, and our group works with $12B, so with those size numbers at both levels we are able to work skinny. |
Oh I know. $65k split between 2 companies for the risk and overhead associated with a $1mm producer plus making a profit, seems WAY too tight to me. Only way to make that work is to get size, and get it quickly.
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Posted By: Hacksaw
Date Posted: Oct/03/2022 at 4:57pm
TCook wrote:
missionshooter wrote:
Hacksaw wrote:
TCook wrote:
No, that would be a net payout to you, so in your example, at $1 Million with a 93.5% payout you would receive $935k of revenue. Our payout that is higher than that and we retain the difference. 93.5% = 93.5%!
I would also mention that the admin pricing on advisor as portfolio manager is very competitive as well. We compete with firms that charge anywhere from 10-30 basis points for program fees on the advisor as port manager program, when we are at 3-8 basis points. If an advisor has $100 Million in advisory that is a significant difference in higher retained revenue, decreased cost to the client or both. We have some situations were other BD's may pay $300k higher in transition dollars, but their advisory charges are $200-$300k higher, annually. Pretty simple math to determine the improvement over a 10 year period of time. That higher up front check can be very costly. |
So you're saying that for every $1 my client pays, I would receive $.935? |
Where is the SAM/SWM program fee?
|
We are a corporate RIA affiliated, so we use SAM only. Its 3-8 depending on AUM, and we do have some flexibility on the flat SAM pricing. Would need to discuss to come up with something that works for everyone. |
Wait. So is the SAM fee (3-8 bps) not included in the payout?
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Posted By: missionshooter
Date Posted: Oct/03/2022 at 5:02pm
Hacksaw wrote:
TCook wrote:
missionshooter wrote:
Hacksaw wrote:
TCook wrote:
No, that would be a net payout to you, so in your example, at $1 Million with a 93.5% payout you would receive $935k of revenue. Our payout that is higher than that and we retain the difference. 93.5% = 93.5%!
I would also mention that the admin pricing on advisor as portfolio manager is very competitive as well. We compete with firms that charge anywhere from 10-30 basis points for program fees on the advisor as port manager program, when we are at 3-8 basis points. If an advisor has $100 Million in advisory that is a significant difference in higher retained revenue, decreased cost to the client or both. We have some situations were other BD's may pay $300k higher in transition dollars, but their advisory charges are $200-$300k higher, annually. Pretty simple math to determine the improvement over a 10 year period of time. That higher up front check can be very costly. |
So you're saying that for every $1 my client pays, I would receive $.935? |
Where is the SAM/SWM program fee?
|
We are a corporate RIA affiliated, so we use SAM only. Its 3-8 depending on AUM, and we do have some flexibility on the flat SAM pricing. Would need to discuss to come up with something that works for everyone. |
Wait. So is the SAM fee (3-8 bps) not included in the payout? |
NO it is NOT. He lied to us because he failed to mention the SAM Program Fee.
If you charge 1.00%. 3-8BPS comes out off the top.
So let's say 8 BPS. So, 0.92 goes to your 93.5% Grid.
So really you get $86 out of $100.
That's a fact Jack!
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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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Posted By: TCook
Date Posted: Oct/03/2022 at 5:03pm
Hacksaw wrote:
TCook wrote:
missionshooter wrote:
Hacksaw wrote:
TCook wrote:
No, that would be a net payout to you, so in your example, at $1 Million with a 93.5% payout you would receive $935k of revenue. Our payout that is higher than that and we retain the difference. 93.5% = 93.5%!
I would also mention that the admin pricing on advisor as portfolio manager is very competitive as well. We compete with firms that charge anywhere from 10-30 basis points for program fees on the advisor as port manager program, when we are at 3-8 basis points. If an advisor has $100 Million in advisory that is a significant difference in higher retained revenue, decreased cost to the client or both. We have some situations were other BD's may pay $300k higher in transition dollars, but their advisory charges are $200-$300k higher, annually. Pretty simple math to determine the improvement over a 10 year period of time. That higher up front check can be very costly. |
So you're saying that for every $1 my client pays, I would receive $.935? |
Where is the SAM/SWM program fee?
|
We are a corporate RIA affiliated, so we use SAM only. Its 3-8 depending on AUM, and we do have some flexibility on the flat SAM pricing. Would need to discuss to come up with something that works for everyone. |
Wait. So is the SAM fee (3-8 bps) not included in the payout? |
It is not included in the payout. The house keeps the 3-8bps, and then the rest is paid out at the grid. My understanding is that most BD's run it that way. So if you were at 3bps, and you charged 1.03%, you would receive 93.5% of the remaining dollar after the house kept the .03%, or put another way, client pays $1.03 and you are paid 93.5 cents in this example
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Posted By: freebird
Date Posted: Oct/03/2022 at 5:03pm
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No different than RJ charging 15 bps or whatever for freedom. Right?
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Posted By: TCook
Date Posted: Oct/03/2022 at 5:05pm
freebird wrote:
No different than RJ charging 15 bps or whatever for freedom. Right? |
Correct. They keep the 15bps, LPL keeps the 3-8bps. Then to the payout.
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Posted By: Hacksaw
Date Posted: Oct/03/2022 at 5:10pm
freebird wrote:
No different than RJ charging 15 bps or whatever for freedom. Right? |
I pay zero - it's baked into our payout.
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Posted By: freebird
Date Posted: Oct/03/2022 at 5:14pm
Hacksaw wrote:
freebird wrote:
No different than RJ charging 15 bps or whatever for freedom. Right? |
I pay zero - it's baked into our payout. |
Right but your payout doesn’t start anywhere near 93 1/2
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Posted By: Hacksaw
Date Posted: Oct/03/2022 at 5:20pm
TCook wrote:
Hacksaw wrote:
TCook wrote:
missionshooter wrote:
Hacksaw wrote:
TCook wrote:
No, that would be a net payout to you, so in your example, at $1 Million with a 93.5% payout you would receive $935k of revenue. Our payout that is higher than that and we retain the difference. 93.5% = 93.5%!
I would also mention that the admin pricing on advisor as portfolio manager is very competitive as well. We compete with firms that charge anywhere from 10-30 basis points for program fees on the advisor as port manager program, when we are at 3-8 basis points. If an advisor has $100 Million in advisory that is a significant difference in higher retained revenue, decreased cost to the client or both. We have some situations were other BD's may pay $300k higher in transition dollars, but their advisory charges are $200-$300k higher, annually. Pretty simple math to determine the improvement over a 10 year period of time. That higher up front check can be very costly. |
So you're saying that for every $1 my client pays, I would receive $.935? |
Where is the SAM/SWM program fee?
|
We are a corporate RIA affiliated, so we use SAM only. Its 3-8 depending on AUM, and we do have some flexibility on the flat SAM pricing. Would need to discuss to come up with something that works for everyone. |
Wait. So is the SAM fee (3-8 bps) not included in the payout? |
It is not included in the payout. The house keeps the 3-8bps, and then the rest is paid out at the grid. My understanding is that most BD's run it that way. So if you were at 3bps, and you charged 1.03%, you would receive 93.5% of the remaining dollar after the house kept the .03%, or put another way, client pays $1.03 and you are paid 93.5 cents in this example |
That makes more sense, but also not what you said when I asked directly the question bolded. Might want to tighten that up.
In reality, at $1mm in production, the payout is somewhere between 86.02% and 90.695% (93.5% after 3-8bps). But that's also if I'm charging 1%. If I was higher, it's higher, and if lower, it's lower.
charge 1.25% = 87.515% - 91.256% charge .75% = 83.527% - 89.75%
Still good - decent payouts by the way.
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Posted By: Hacksaw
Date Posted: Oct/03/2022 at 5:20pm
freebird wrote:
Hacksaw wrote:
freebird wrote:
No different than RJ charging 15 bps or whatever for freedom. Right? |
I pay zero - it's baked into our payout. |
Right but your payout doesn’t start anywhere near 93 1/2
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Neither does his
Edit to add - Mine is higher than his "93.5%", but we also have the added compliance of our own RIA
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Posted By: TCook
Date Posted: Oct/03/2022 at 5:45pm
Hacksaw wrote:
TCook wrote:
Hacksaw wrote:
TCook wrote:
missionshooter wrote:
Hacksaw wrote:
TCook wrote:
No, that would be a net payout to you, so in your example, at $1 Million with a 93.5% payout you would receive $935k of revenue. Our payout that is higher than that and we retain the difference. 93.5% = 93.5%!
I would also mention that the admin pricing on advisor as portfolio manager is very competitive as well. We compete with firms that charge anywhere from 10-30 basis points for program fees on the advisor as port manager program, when we are at 3-8 basis points. If an advisor has $100 Million in advisory that is a significant difference in higher retained revenue, decreased cost to the client or both. We have some situations were other BD's may pay $300k higher in transition dollars, but their advisory charges are $200-$300k higher, annually. Pretty simple math to determine the improvement over a 10 year period of time. That higher up front check can be very costly. |
So you're saying that for every $1 my client pays, I would receive $.935? |
Where is the SAM/SWM program fee?
|
We are a corporate RIA affiliated, so we use SAM only. Its 3-8 depending on AUM, and we do have some flexibility on the flat SAM pricing. Would need to discuss to come up with something that works for everyone. |
Wait. So is the SAM fee (3-8 bps) not included in the payout? |
It is not included in the payout. The house keeps the 3-8bps, and then the rest is paid out at the grid. My understanding is that most BD's run it that way. So if you were at 3bps, and you charged 1.03%, you would receive 93.5% of the remaining dollar after the house kept the .03%, or put another way, client pays $1.03 and you are paid 93.5 cents in this example |
That makes more sense, but also not what you said when I asked directly the question bolded. Might want to tighten that up.
In reality, at $1mm in production, the payout is somewhere between 86.02% and 90.695% (93.5% after 3-8bps). But that's also if I'm charging 1%. If I was higher, it's higher, and if lower, it's lower.
charge 1.25% = 87.515% - 91.256% charge .75% = 83.527% - 89.75%
Still good - decent payouts by the way. |
Fair enough, consider it tightened.
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Posted By: WarPig
Date Posted: Oct/03/2022 at 5:52pm
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All this slave talk is exhausting.
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Posted By: advisorman
Date Posted: Oct/03/2022 at 10:00pm
LPL sucks
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King of sarcasm and speling
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Posted By: Guests
Date Posted: Oct/03/2022 at 11:29pm
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.
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Posted By: richchick
Date Posted: Oct/04/2022 at 1:05am
helado wrote:
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.
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Posted By: TCook
Date Posted: Oct/04/2022 at 7:27am
helado wrote:
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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Posted By: BigCheese
Date Posted: Oct/04/2022 at 9:42am
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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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Posted By: Guests
Date Posted: Oct/04/2022 at 9:55am
richchick wrote:
helado wrote:
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. |
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Posted By: knuk
Date Posted: Oct/04/2022 at 10:05am
WarPig wrote:
All this slave talk is exhausting. |
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administrator
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Posted By: Conrad Dobler
Date Posted: Oct/04/2022 at 10:11am
freebird wrote:
Conrad Dobler wrote:
Tough, but fair. |
Did you accidentally click here instead of politics? |
No, but are you stalking me to see where I post?
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No matter how bad it might be, your morning is going better than Travis Davis’.
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Posted By: BigCheese
Date Posted: Oct/04/2022 at 11:12am
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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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Posted By: TCook
Date Posted: Oct/04/2022 at 11:27am
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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Posted By: missionshooter
Date Posted: Oct/04/2022 at 11:27am
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.
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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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Posted By: TCook
Date Posted: Oct/04/2022 at 11:28am
TCook wrote:
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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Posted By: WarPig
Date Posted: Oct/04/2022 at 11:30am
TCook wrote:
TCook wrote:
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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Posted By: richchick
Date Posted: Oct/04/2022 at 1:11pm
WarPig wrote:
TCook wrote:
TCook wrote:
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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Posted By: BigCheese
Date Posted: Oct/04/2022 at 1:55pm
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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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Posted By: Guests
Date Posted: Oct/04/2022 at 7:52pm
Posted By: Guests
Date Posted: Oct/04/2022 at 7:54pm
TCook wrote:
helado wrote:
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.
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Posted By: Guests
Date Posted: Oct/04/2022 at 8:01pm
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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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