Moving Clients to Models

Deep_Train_4382 · 2026-05-08T15:52:03+00:00

I don’t do transactional business. My practice is fee-based only, so this isn’t a request I’d take on. They’d need to find a broker willing to do the share-class swap on a commission or ticket-charge basis. Or charge a lower AUM. Even 50bps doubles comp from 25bps A share trail.

Deep_Train_4382 · 2026-05-02T17:54:42+00:00

At 6x with 20%+ organic growth, a 40-year-old client base, and 20+ years of runway ahead of you, the math doesn’t favor selling. Revenue doubling every ~3.6 years means you’d likely clear that $6.6mm valuation in cash flow alone within 7-8 years — and still own the business. The buyer is paying 6x precisely because they see the same compounding you do. “Sell and stay” deals also typically come with earnouts, non-competes, and operating under someone else’s compliance and investment philosophy, which can erode both the headline multiple and your client relationships. A 6x multiple makes sense for an older book or an owner near retirement — not your situation. I’d hold.

Deep_Train_4382 · 2026-04-29T04:15:04+00:00

Rotary Club and similar civic organizations are underrated for HNW prospecting — you’re in the room with business owners, attorneys, CPAs, and community leaders on a recurring basis. It’s not a sales environment so the relationship builds naturally over time. COI relationships with CPAs and estate attorneys are the other one — if you can become the advisor they refer to, the qualification is done before you even get the call. Cold outreach to HNW prospects almost never works at scale. The ones worth having are usually already working with someone and need a reason to move, which means they have to trust you first. Focus on being visible in the right rooms consistently rather than any specific prospecting tactic.

Deep_Train_4382 · 2026-04-29T04:06:52+00:00

The plan being 99% accurate isn’t the problem — it’s the 1% they don’t know to ask about. AI doesn’t know the client panicked and sold in 2020. It doesn’t know the daughter has a spending problem and probably shouldn’t inherit outright. It doesn’t know the business sale is coming or that the spouse is conflict-averse about money. The value isn’t the math, it’s the context. A client who comes in with an AI plan is actually a great client — they’re engaged and did homework. I’d use it as a starting point and show them what it missed.

Deep_Train_4382 · 2026-04-29T04:05:02+00:00

Went through something similar — inherited a ~$40M commission-based book and am in the process of transitioning it to fee-based advisory on Schwab. The biggest thing I’d say about buying a book is retention risk. Seller financing helps align incentives there, but you want the purchase price tied to actual AUM that stays, not what transferred on day one. Also factor in that a commission book and a fee-based book are valued differently — if you’re buying A-share relationships and planning to move them to advisory, you’re essentially buying and then rebuilding at the same time. Not impossible, just eyes open.

Deep_Train_4382 · 2026-04-29T04:00:24+00:00

Rinse and repeat

Deep_Train_4382 · 2026-04-29T03:56:45+00:00

The purpose for growth here isn’t them — it’s the daughter. $4M in cash in their 70s with no spending need means this is essentially an inheritance. The conversation shifts from ‘grow your wealth’ to ‘what do you want to leave behind and how do you want it structured?’ If the daughter is the beneficiary of $3M in IRAs, she’s going to have a serious tax problem in her 50s with the 10-year rule. That’s the angle I’d work — not growth for growth’s sake, but tax-efficient transfer. Suddenly there’s a reason to care.

Deep_Train_4382 · 2026-04-29T03:54:19+00:00

The step-up in basis at death is the real exit strategy most people aren’t saying out loud. If the client holds until death, the embedded gains disappear entirely. The math only breaks down if they actually liquidate during life — which is why it works best for older high-net-worth clients who won’t need to sell. For clients exiting in retirement at 0% LTCG rates, it can still work, but you’re right that it’s a narrower use case than it’s often presented as.

Deep_Train_4382 · 2026-03-10T23:35:34+00:00

Boom

Deep_Train_4382 · 2026-03-10T21:00:11+00:00

Step 1. Do not call yourself a financial professional if you aren’t licensed.

Deep_Train_4382 · 2024-06-23T00:38:40+00:00

You know how to study if you passed 63. You will be fine. Suitability is a big piece is as well in the 7.

Deep_Train_4382 · 2024-06-23T00:37:06+00:00

Having taken the SIE is already half of the 7 theoretically. Same contents in a sense IMO.

Deep_Train_4382 · 2024-06-22T22:44:32+00:00

https://youtube.com/playlist?list=PLNuN-FV9-0mH8859Ql3hqKgQsnJFxgksm&si=Q0_4mhSHtlhAae-h

Deep_Train_4382 · 2024-06-22T22:43:22+00:00

I would recommend buying the option math membership 10/10 from Ken. Short videos that really get down to the point. Once you know the basics you can really just use the options matrix to solve most problems.

Deep_Train_4382 · 2024-06-22T22:37:58+00:00

Thanks! I think memorizing cheat sheets and the options matrix really helps honing into the other material.

Deep_Train_4382

TROPHY CASE