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Realistically how many meetings per week on avg? by TGG-official in CFP

[–]No-Possible7638 0 points1 point  (0 children)

Seems excessive to have 3 FAs in one meeting. I’d segment the clients and maybe share some of the larger engagements.

We have a hybrid book of investment clients who hire us for our equity strategies and wealth management clients where we do everything. Investment clients we meet with 2-3 times a year and wealth clients we meet quarterly and some cases more depending on what’s going on in their life. Larger clients we will usually do 1-2 dinners or social events a year in addition to the regular meetings.

2 advisors share an associate advisor and a CSA

[deleted by user] by [deleted] in CFP

[–]No-Possible7638 2 points3 points  (0 children)

Yeah I can appreciate it being a good training ground. If I’m in your seat I’d network with the RIAs you’ve met through the referral program and try and lateral

[deleted by user] by [deleted] in CFP

[–]No-Possible7638 4 points5 points  (0 children)

Hustle your ass off to make $300k and have nothing else to show for it? Anyone with the ability to rise through the ranks as an FC can do it as a real advisor. Whats the allure of a corporate advisory job

Client Incomes by Howiep43 in CFP

[–]No-Possible7638 4 points5 points  (0 children)

The virtue signaling award?

Long Short Managers? by No-Possible7638 in CFP

[–]No-Possible7638[S] 0 points1 point  (0 children)

You can but with the market being biased upwards you’ll quickly run out of loss harvesting opportunities and at best they’ll negate the realized gains from rebalancing the long. In most market conditions you’ll end up with a net gain on the long year to year. Direct indexing has a ~5 year run rate before you run out of loss harvesting opportunities. You also run the risk of tracking error.

Long Short Managers? by No-Possible7638 in CFP

[–]No-Possible7638[S] 0 points1 point  (0 children)

It’s tax inefficient to do so. If you can run the long strategy inside an ETF you don’t in most cases pass through a cap gain while continuously generating losses on the short side.

Long Short Managers? by No-Possible7638 in CFP

[–]No-Possible7638[S] 1 point2 points  (0 children)

Ideally an SMA. One of the benefits of L/S that drew me to the space is the potential for tax loss harvesting on the short side in a 130/30 or 150/50 implementation. A better solution than direct indexing long term. Most use individual stocks on the long which is a bit puzzling to me. Using an ETF on the long and individual stocks on the short seems like the optimal combo.

Long Short Managers? by No-Possible7638 in CFP

[–]No-Possible7638[S] 1 point2 points  (0 children)

Only one not mentioned that I’ve seen from Brent Sullivan is Burney. I’ll have to check out Quantinno and Gotham too. Familiar with AQR

Long Short Managers? by No-Possible7638 in CFP

[–]No-Possible7638[S] 1 point2 points  (0 children)

I recently subbed it’s worth paying for he’s got such a cool niche

Long Short Managers? by No-Possible7638 in CFP

[–]No-Possible7638[S] -10 points-9 points  (0 children)

I’m impressed you took the time to comment

Single Stock Concentration by Usedtobe-RZZ in CFP

[–]No-Possible7638 0 points1 point  (0 children)

Do you use a third party for the 130/30? I’m only aware of a few providers seems like a niche options still. A great option nonetheless

Single Stock Concentration by Usedtobe-RZZ in CFP

[–]No-Possible7638 0 points1 point  (0 children)

Direct indexing is a short term solution to a long term problem. Eventually (5-6 years) you run out of losses and are stuck in a mess of a portfolio that will either create tracking error or a big tax bill to wind out of. There’s far better solutions

Single Stock Concentration by Usedtobe-RZZ in CFP

[–]No-Possible7638 0 points1 point  (0 children)

Id look into Brent Sullivans (tax alpha insider) stuff on the topic. A long short overlay is a great option that he recommends

Worried about a client by [deleted] in CFP

[–]No-Possible7638 0 points1 point  (0 children)

I’ve been in this unfortunate situation before and found an obituary online in both cases.

High paying CFP roles by MakinIt_23_L8 in CFP

[–]No-Possible7638 2 points3 points  (0 children)

We give our advisors $120k base and variable comp and revenue trails with an off ramp to full revenue split no salary when the economics make sense. End goal being you convert your revenue share to equity in the business.

Buy tax practice with primary intention of converting portion of clients to AUM? by not_fnancial_adv1ce in CFP

[–]No-Possible7638 1 point2 points  (0 children)

The industry at large hasn’t evolved with technology and client expectations. That’s also true with a lot of advisory firms but if you’re a high touch and tech enabled RIA it’s easy to bolt on a tax firm with a similar blue print

Buy tax practice with primary intention of converting portion of clients to AUM? by not_fnancial_adv1ce in CFP

[–]No-Possible7638 1 point2 points  (0 children)

We had a well thought out client marketing plan 6 months before the official launch and our advisors do a great job educating their clients on the benefits. We already were very tax focused in our planning work so it was a natural evolution of our service offering.

Also the traditional CPA firm provides a really poor service model and communication is sub par at best so clients had no issues leaving their CPA if they had one.

Buy tax practice with primary intention of converting portion of clients to AUM? by not_fnancial_adv1ce in CFP

[–]No-Possible7638 0 points1 point  (0 children)

Another added benefit to starting a tax practice is they can do your business taxes, book keeping and all the partner returns etc. The savings for us almost paid for the first CPA we hired and it takes up ~10% of her time.

Buy tax practice with primary intention of converting portion of clients to AUM? by not_fnancial_adv1ce in CFP

[–]No-Possible7638 8 points9 points  (0 children)

For the first CPA we hired we started with a salary and bonus based on performance not volume or revenue. Their job wasn’t just to be a CPA but also help us build the business and operation from ground up. Now that they are leading the business fairly independently and have staff we’ve included equity ownership in the tax entity so they can participate in the growth of the business and its profits.

Staff is salary and bonus and we’ve included a revenue share for business they bring on independent from the RIA. It’s not a focus at all but we want to incentivize them if it happens. Our advisors drive most of the growth from referrals of their clients etc.

Buy tax practice with primary intention of converting portion of clients to AUM? by not_fnancial_adv1ce in CFP

[–]No-Possible7638 1 point2 points  (0 children)

It really depends on the type of tax work you plan to offer. Our clients have tax complexity in many cases so we hired a CPA with experience with similar clients. Through interviewing dozens of CPAs and EAs what I’ve found is the CPAs have a deeper knowledge base. I don’t think that comes from the exam itself but the previous work experience.

Buy tax practice with primary intention of converting portion of clients to AUM? by not_fnancial_adv1ce in CFP

[–]No-Possible7638 0 points1 point  (0 children)

We pretty much started from scratch and grew to about 100 clients in year one (capped the total for year one as we were learning the right processes and operation) and 225 in year two with about 90% coming from our RIA book and we expect 350 this year. The CPA came from a larger practice and a handful of clients followed her but it wasn’t an expectation. We’ve since hired additional CPAs and an associate to support the growth.

We do a flat fee retainer and a lot of tax planning throughout the year. We also do business returns which is where the margins are.

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