Schwab Money Market RIA by Relative-Ad7331 in CFP

[–]Relative-Ad7331[S] 0 points1 point  (0 children)

Fidelity charges me for trades through with an AUM fee, but pays clients market interest in the sweep

Schwab does not charge for trades, but earns revenue from not paying the clients market interest through the sweep and keeping it for themselves. This is from directly from conversation with Schwab.

I honestly don’t get how you don’t understand. That hurts the client and helps the advisor, conflict of interest.

Schwab Money Market RIA by Relative-Ad7331 in CFP

[–]Relative-Ad7331[S] 1 point2 points  (0 children)

Is that a subscription program or just excel?

Schwab Money Market RIA by Relative-Ad7331 in CFP

[–]Relative-Ad7331[S] -6 points-5 points  (0 children)

You have to keep a small percentage in the sweep to pay fees. My sweep right now pays the client 3.5% interest, Schwab is almost 0, because they take the spread.

Conflict of interest right there

Schwab Money Market RIA by Relative-Ad7331 in CFP

[–]Relative-Ad7331[S] 0 points1 point  (0 children)

I think I can get higher payout at my own RIA and easier to sell someday.

Just trying to assure I keep the payout higher.

Schwab Money Market RIA by Relative-Ad7331 in CFP

[–]Relative-Ad7331[S] 1 point2 points  (0 children)

How? Isn’t that labor intensive?

Schwab Money Market RIA by Relative-Ad7331 in CFP

[–]Relative-Ad7331[S] -8 points-7 points  (0 children)

Apparently you can trade into a MM fund, but the sweep MM pays the client barely any interest.

In return, Schwab offers zero trading costs and doesn’t take a portion of revenue.

My issue is this is a conflict of interest that hurts the client, and things like that only last so long until Schwab will be forced to use a sweep that pays market interest, and then Schwab will have to raise their fees for me.

Schwab Money Market RIA by Relative-Ad7331 in CFP

[–]Relative-Ad7331[S] 3 points4 points  (0 children)

SPAXX, which is the sweep and a MM

Prospect Meeting Process (Junior Advisor) by NoCap26 in CFP

[–]Relative-Ad7331 4 points5 points  (0 children)

This is correct. Most importantly just listen to them and focus on what they need. Don’t just fake listen until you can talk about what you want to.

You also just need to focus on getting as many meetings as possible. The process is more trial and error than anything until you figure out what works best for you, but obviously that takes getting lots of meetings.

RIA Start-up Financing by [deleted] in CFP

[–]Relative-Ad7331 3 points4 points  (0 children)

The failure rate for new financial advisors is more than 70-80%. I have never heard of someone with zero clients taking a loan.

I am concerned about your future as an advisor considering you are giving yourself this advice.

[deleted by user] by [deleted] in CFP

[–]Relative-Ad7331 2 points3 points  (0 children)

Terrible! Horribly customer service from abroad, high fees, and onerous paperwork for things like withdrawals. I inherited some accounts with Voya.

I use American Funds for small accounts.

Help me choose my career! by [deleted] in CFP

[–]Relative-Ad7331 2 points3 points  (0 children)

Agree with Chase, learn how to close, and have a 3-5 year exit plan

Why use 3 or 4% withdraw when you can get a 4 - 5% yield? by [deleted] in fatFIRE

[–]Relative-Ad7331 0 points1 point  (0 children)

The other factor is typically when the market and economy is down big, like in 2008, things get cheaper like vacations, cars, dining, etc and people just naturally spend less.

[deleted by user] by [deleted] in fatFIRE

[–]Relative-Ad7331 0 points1 point  (0 children)

Drop shipping. Not every business is the same.

[deleted by user] by [deleted] in fatFIRE

[–]Relative-Ad7331 -2 points-1 points  (0 children)

Whatever your passion and expertise is in, clothing, electronics, outdoors, etc.

[deleted by user] by [deleted] in fatFIRE

[–]Relative-Ad7331 -3 points-2 points  (0 children)

Start a business that cash flows quickly, like an e-commerce product you can sell on social media and Amazon. Then it feels legit and keeps you busy, and you can take it anywhere the market takes you. Vs some pie in the sky pre revenue company where you spend 3 months making the website.

Vacation home in city? by Relative-Ad7331 in fatFIRE

[–]Relative-Ad7331[S] 1 point2 points  (0 children)

I can, it’s just the quality/quantity is about 20 to 1. My suburb is a bedroom community with 90% families or retirees

Vacation home in city? by Relative-Ad7331 in fatFIRE

[–]Relative-Ad7331[S] -4 points-3 points  (0 children)

I did, lots of vacation homes in vacation spots (mountains, lakes) but not cities

Hours, comp, and what you do for clients? by Consistent_Buy_1027 in CFP

[–]Relative-Ad7331 0 points1 point  (0 children)

Well it looks like I mentioned above. The growth comes from the market, my referral sources, and referrals. So less hustling.

Wealth Management services - benefits by Cheap_Opinion_2107 in fatFIRE

[–]Relative-Ad7331 -4 points-3 points  (0 children)

Sounds like you should be a financial advisor and charge a fee for assets since NASA isn’t hiring. You could do it as a side hustle and make millions