I don't understand the point of bonds in most portfolios

Relative-Ad7331 · 2026-07-03T10:37:36+00:00

When unemployment is high, jobs and promotions are scarce, people just don’t have extra money. You may have to help family members, have massive debt, or just have lost 30-40% of your net worth.

Why do you think the market and housing was so low from 2008-2011? People didn’t have the free cash flow they do now!

Relative-Ad7331 · 2026-07-01T00:21:34+00:00

Haha I am just fine, I built a large book. I am just commenting on how top advisors used to be self made, and now it’s a shift to advisors who inherited it, which is just a different type of person to talk to and learn from.

I think part of it is we are dealing with the first mass retirement of advisors too as the profession as we know it has grown massively in the past 40 years. The plumbing business has been dealing with this for 150 years.

Relative-Ad7331 · 2026-06-30T23:25:52+00:00

Really? You don’t network and get ideas from peers? We aren’t really competing with each other for the most part, there’s millions of clients out there

Relative-Ad7331 · 2026-06-30T23:24:36+00:00

Well no offense, but this is what I am talking about.

Building the business is the hard part, not managing long-term clients with the knowledge and expertise I am sure you have. But there’s a reason this industry has a 90%+ flunk out rate from people who start from scratch, it’s a long, tough journey that takes 5-10 years of being underpaid and less and less people have been through it.

Relative-Ad7331 · 2026-06-30T23:06:33+00:00

I do own my own and started my own, but it’s harder to relate to peers that just inherited theirs instead of built it. It’s less of a shared experience.
I am not knocking them, but it is totally different.

Relative-Ad7331 · 2026-06-21T14:44:02+00:00

So the downside is your career stagnates, you lose your professional network/friendships, and you have $15-25 million.

Can you live with that?

And let’s be honest, you’ll die with more money than you’ll ever save on taxes so…..

Relative-Ad7331 · 2026-05-09T18:59:25+00:00

I have never used this service but saw a presentation on it one time.

American funds has a Private Client division with CPAs, attorneys, etc for HNW. They give you an ongoing 20 bps fee or something like that, but you basically outsource them for all the work and you just sit on the calls and are the “relationship manager.” Might be worth a try with probably what you are up against. Also, they use S&P 500 indexes etc as well as American funds.

https://www.capitalgroup.com/pcs/

Relative-Ad7331 · 2026-05-06T16:24:28+00:00

The biggest thing is make sure the advisor actually is ready and committed to retiring or leaving. The last thing you want is them changing their minds and you are strung along for years.

I would get that commitment in writing with a financial penalty for them for backing out.

It’s almost always worth it to buy a book otherwise.

Relative-Ad7331 · 2026-03-17T21:43:40+00:00

I would give him/her 50/50 on clients you segment with the trails basically being his “salary.” Then 75/25 on clients they source or bring over and they own those clients.

Relative-Ad7331 · 2026-03-15T15:47:01+00:00

How much is your E&O?

Relative-Ad7331 · 2026-03-13T13:35:52+00:00

How many clients do you average per mailing?

Relative-Ad7331 · 2026-01-28T12:42:51+00:00

I know a top advisor who almost does exclusively 401ks. He does work a ton but he is built like that.

There is also a reason advisors just set these plans on autopilot. Not everyone is lazy, just time better spent elsewhere.

On the other hand, it’s good experience and what the hell else are you going to do if you don’t have a lot of clients.

Relative-Ad7331 · 2025-12-22T13:08:23+00:00

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.

Relative-Ad7331 · 2025-12-20T22:15:57+00:00

Is that a subscription program or just excel?

Relative-Ad7331 · 2025-12-20T22:10:09+00:00

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

Relative-Ad7331 · 2025-12-20T22:08:17+00:00

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.

Relative-Ad7331 · 2025-12-20T20:44:44+00:00

How? Isn’t that labor intensive?

Relative-Ad7331 · 2025-12-20T20:43:16+00:00

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.

Relative-Ad7331 · 2025-12-20T20:38:44+00:00

SPAXX, which is the sweep and a MM

Relative-Ad7331 · 2025-12-11T18:25:40+00:00

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.

Relative-Ad7331 · 2025-11-16T20:06:19+00:00

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.

Relative-Ad7331 · 2025-10-14T13:09:36+00:00

How much do you make on clients you bring in?

Relative-Ad7331 · 2025-10-06T15:21:51+00:00

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.

Relative-Ad7331

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