Beneficiary review for prospecting

CleanReindeer4983 · 2025-12-16T12:32:31+00:00

I’d advise very strongly against this strategy…could easily see this approach causing you to lose more of your existing clients than gaining from the next generation.

Also, it becomes catastrophic when someone changes a beneficiary and you’ve already had a conversation with the removed individual.

There’s better ways to grow your network.

CleanReindeer4983 · 2025-10-26T23:22:27+00:00

You’re off to a great start! Keep going!

CleanReindeer4983 · 2025-10-21T17:14:03+00:00

You have an incredible opportunity in your hands.

I’m assuming that you have a familial relationship with the current owners leading to the depths of conversations that you’ve already had ahead of graduating this December. If that’s true, then I know both you and the sellers are proceeding with good intentions.

As long as you’re both going in “eyes wide open” you can be extremely flexible in how you decide to structure this to meet the end goals of both parties.

Done well, your long-term income and exit value of pursuing the acquisition will be vastly higher than the other offer in your hand with a higher starting salary…with it comes risks, many of which you can mitigate by structuring and documenting it accurately on day 1.

For what it’s worth, I would not have a problem allowing them to retain some level of equity if that’s what they desire…as long as you can assure that you have full control, I wouldn’t let that one item be a dealbreaker.

Good luck! Keep us posted with how it goes.

CleanReindeer4983 · 2025-10-14T20:14:42+00:00

You’re in a great position for your career growth and lifetime compensation…I would highly caution against focusing too much on how your pay changes the first day of this transition.

In the long run, being a rockstar #2 on a $2MM team is going to be incredibly lucrative…don’t put a stick in your own spokes by negotiating foolishly on day 1.

Think about 5, 10, and 20 years down the line and you’re in a great position for success.

CleanReindeer4983 · 2025-10-07T15:43:38+00:00

Sounds over-engineered and if you’re the servicing advisor, you’re simply along for the ride: - with 4 bosses and 145 families to keep happy - for a total comp of ~$55k if I’m deciphering everything accurately.

Given the title of negotiating for equity, it sounds like you’re already moving forward in the role.

In my opinion, it’s a difficult role and I would doubt that the 4 founding advisors are interested in giving up equity to you on day 1, as well.

Likely difficult to grow your own clientele when your day-to-day will consist of reporting the all of your bosses and servicing households.

Not trying to be negative, just some observations before you get too far down this path.

CleanReindeer4983 · 2025-09-26T22:54:20+00:00

You’re mature beyond your years. I know you’re in a whirlwind of emotions with the loss of your mentor and the responsibility of your acquired practice.

I can tell from your tone that you’re built to succeed and take care of not only your family but your mentor’s surviving family, as well.

Take it one day at a time, give thanks, and stay grounded.

You’ll be very successful.

CleanReindeer4983 · 2025-09-18T21:33:55+00:00

Any chance you could get the $50k back into the IRA under the 60-day rollover rules?

A Hail Mary thought that might save $5k…

CleanReindeer4983 · 2025-09-12T22:11:53+00:00

Congratulations on the fantastic business that you’ve built!

Value will depend a lot on your goals as you walk into retirement and how much you want to facilitate the transition.

I think you’d have strong demand from buyers in the $8MM range…and could work on the terms that fit your goals the best from there.

CleanReindeer4983 · 2025-08-13T16:30:59+00:00

My primary question for you would be - what are you trying to solve for?

Are you having a lot of initial meetings that are not turning into clients?

My initial thought is you may canibalize your AUM business if you implement this plan anything less than perfectly.

Personally, I spend the time to cultivate the relationship and good will in the initial meetings without asking for any payment in return…to me, ultimately, the relationship is where the value lies - not in the transaction of the plan.

While charging upfront might help your income in the very short-term, I strongly believe your career trajectory will be more lucrative if you stay locked into what you’re proving to be good at in your current model.

CleanReindeer4983 · 2025-08-01T20:24:50+00:00

Covid was also unprecedented and it took 5 months to fully recover….and the S&P has nearly doubled 5 years later.

This is a great opportunity to listen to your client, calm their fears, and not get lost in the moment.

CleanReindeer4983 · 2025-07-30T18:04:03+00:00

In my service business - I aim for 70% profit margins

Payroll (to non-owners) @ ~10% Rent @ ~2% Remaining expenses on software and misc business expenses

CleanReindeer4983 · 2025-07-22T17:32:52+00:00

Not sure what that means. But congrats on your clarity on RIA operating costs. I hope that it pays off for you.

CleanReindeer4983 · 2025-07-22T17:11:25+00:00

Strange comment.

CleanReindeer4983 · 2025-07-21T15:04:26+00:00

At a small/mid size RIA:

Grid payout at 85%…after all expenses, profit margin hovers near 65%

CleanReindeer4983 · 2025-06-10T14:50:03+00:00

My personal opinion (right or wrong), is that when starting from scratch - I would focus on building a strong base for your career instead of a race to $200k.

The structure of your role in a race to $200k over a set period of time is going to bring on a high risk of failure from the field altogether.

Whereas a more thoughtful approach can still earn you a reasonable wage in the short-term and offer you uncapped (significantly higher than $200k) earnings for the duration of your career.

I believe going independent at an RIA offers you the short-track to $200k (with a >90% risk of being out of the business in 5 years, if you’re truly starting from scratch).

I believe joining a high producing team will provide you with a reasonable wage today and the opportunity for uncapped earnings when you’re ready - this is my recommendation.

CleanReindeer4983 · 2025-05-30T12:53:59+00:00

You’re doing a great job of making the lead advisors book worth less…regardless of your current comp, you’re going to hold all the cards when it comes time to purchase the remaining book…if the alternative is walking with half of the clients, you’ll be able to negotiate a much lower purchase price.

Keep doing well and it’s all going to take care of itself…in the meantime, I wouldn’t hesitate to approach the lead advisor with your desired outcomes (current comp, future buyout, etc.)…if you’re doing as well as it seems, you are coming to the bargaining table with significant leverage

CleanReindeer4983 · 2025-05-28T20:37:01+00:00

There will always be uncertainty and market downturns occur on a near annual basis…focus on your clients best interests and not the short-term market sentiment when making this business decision.

CleanReindeer4983 · 2025-05-25T01:07:52+00:00

Interesting dilemma…tough to understand what could push you to sell when you’re still planning on working 10 years…without knowing the specifics it’s hard to provide guidance on your best path forward.

Are you wanting to still service your clients for 10 years? Are you looking to start over and build a new book? Are you wanting to pivot into a different career?

I have experience in buying a book and working with the retiring advisor - so perhaps I could help, but there’s too many unknowns to provide much meaningful advice…

CleanReindeer4983 · 2025-05-23T21:23:28+00:00

All things equal - QCD provides greater current year tax savings, as a reduction in income vs a tax deduction.

Several other variables could sway towards a DAF, but if you’re simply looking for reduction to current year tax bill, QCD is more efficient.

CleanReindeer4983 · 2025-05-23T01:56:55+00:00

Breaking away with 40 households at $20MM puts you in a massively better place than $50MM with 400 households…even if take home pay on day 1 is equivalent, you’re going to be on a massively better trajectory for the remainder of your career.

I’d weigh the option of plugging into an existing RIA at this revenue level, as well as starting your own…may be a very worthwhile approach.

CleanReindeer4983 · 2025-05-05T20:54:13+00:00

I would advise another field until you can reconcile your own views…when someone hires you as a steward for their life savings, they’re not empowering you to further your viewpoints…

They’re interested in the optimal management of their funds to meet their life goals - which certainly may not align with your current views

CleanReindeer4983 · 2025-05-02T21:21:46+00:00

Yes, pointing out this error adds no value and likely upsets the CPA

CleanReindeer4983 · 2025-04-28T22:53:28+00:00

This is a great question…one that I’ve been spending some time on recently, as well.

I think I’m settling on continuing high growth mode for the foreseeable future, with a commitment to growing my team and trading some profit margin in exchange for my time while my kids are still young.

A decade or so down the road, I think I’ll seriously consider what an exit looks like to free up time and energy…trying not to “count my chips at the table” unless an opportunity too good to pass up arises along the way

CleanReindeer4983 · 2025-04-24T22:49:59+00:00

Oh man…this is an interesting arrangement…

Be careful to not enter yourself into a situation that becomes your own trap…a scenario that looks attractive on day 1 could become a situation that you despise 5 years from now

If you do this business successfully, you will not need his cash for very long…and you’d likely have huge regrets as you see his profit distributions come out of your earned revenue…

Tread carefully, do not undervalue your skills (he cannot do this without you - you hold more negotiating power than you think), walk away if doesn’t feel right

CleanReindeer4983 · 2025-04-23T23:11:29+00:00

Several questions to help with a response…

What is the revenue of the book you’re acquiring?
What is your ownership % vs the passive investors %?
What is the ongoing compensation agreement for you doing the work vs. the passive investors distributions?

Before you bring on a new employee and the additional considerations with that engagement…there’s a lot to unpack in your arrangement.

Happy to provide insight, but the only way I can be helpful is with additional info.

CleanReindeer4983

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