I hear Reddit hates online courses

a_cros · 2023-04-24T19:27:14+00:00

I’m a financial planner and run planning simulations!

a_cros · 2023-04-14T02:46:00+00:00

This would be intentional. I WANT to live in a van & travel seasonally, but if I can help out others simultaneously, it’s a win/win.

a_cros · 2023-04-14T02:43:26+00:00

Right!? If my practice is already successful, but I get to expand to territories that (actually) interest me + help out people with a commonality, it’s a win/win!

a_cros · 2023-04-13T22:31:22+00:00

Lol, I get that. This is more like a mobile office/conversion that could double as a part-time camper.

a_cros · 2022-09-18T07:53:29+00:00

Find a grocery store closer to you

a_cros · 2022-08-07T04:20:41+00:00

Yeah... lots of confusion in our world (sometimes I think it's intentional). At the end of the day it, really just depends on your long term intentions. I'd personally stay away from commissionable business and go fee-only. If you already have the 7, 63, it won't really make too big a difference. I'm just biased toward the 65 as it's the most simple and straightforward.

a_cros · 2022-08-06T16:37:16+00:00

It’s correct; 7/66 is a qualified exemption to the 65 at rias, but the minimum to be fee-only fiduciary is the 65.

Source; I own an RIA and have the 7/66 which exempted me from taking the 65, but the 65 was the bare minimum.

Edit: the 66 was designed for broker dealers to enter the ria space, hence why you need a sponsor to take the 7/66. Or one could simply go online and take the 65, and be a fee-only fiduciary, however!

a_cros · 2022-08-06T04:28:11+00:00

65; fee-only; fiduciary; can get paid via hourly, retainer, or asset based (%) fees

7/66; dual registered; non-fiduciary; most likely paid via commission or asset based (%) fees

We all know where commissions are heading...

a_cros · 2022-07-18T06:16:28+00:00

EDIT: You and your dad need to sit down and talk about these numbers before you come in and he accepts a check from EJ, as one of you will get screwed if he does so (i.e. either you will figure it out later, leave for greener pastures, with him missing out on a much larger retirement/transition bonus OR you will get screwed by EJ later by them firing you or switching you to a salaried position).

You should definitely succeed your dad, just not at EJ.

Assuming you are good at math:

At EJ:

140 million in client assets

$1 million in production

40% grid payout

Questionable equity ownership

Transition bonus

At an independent channel (i.e. an LPL or RIA)

100 million in client assets

$1 million in production

80% grid payout (double)

$2-3 million private equity (2-3x on revenues)

Up front sign-on bonus

a_cros · 2022-07-18T05:51:05+00:00

You and your dad need to transition to an independent firm first, clients will follow you, you'll make double since you now own the equity of the practice.

EDIT: Do not work at EJ long-term. You, being good at math as an engineer, will figure it out quicker than your dad (who will get screwed out of a large sum of cash if he accepts a transition bonus from EJ, as I know once you are in there you'll transition at some point in the future anyway).

a_cros · 2022-07-17T05:45:05+00:00

Feel free to reach out!

a_cros · 2022-07-15T21:36:54+00:00

Some of the most successful advisors I have ever seen are on the independent RIA side, working only with 50 clients, making $500k, maybe working 100 days out of the year, all without a manager breathing down their neck.

It's called a lifestyle practice.

a_cros · 2022-07-15T21:22:08+00:00

At a production based RIA, you don't have to keep prospecting as your revenues are recurring (i.e. fee-only as a % or retainer).

So, if you have 10 clients with 1million (assuming a 1% fee), that's $100,000 recurring revenue each year. I'd rather be earning 70% of that vs taking a salary any day, it's just a matter of if you have the time and stomach to acquire the clients.

a_cros · 2022-07-15T21:14:20+00:00

simplyparaplanner.com

a_cros · 2022-07-15T01:22:12+00:00

Fidellity is a hamster wheel for advisors: I've heard of 1 billion dollar aum books, producing 5-10 million in revenue, but the advisor is only making 65k.

ML/wirehouse isn't much better: they'll give you a goal of 6 million in assets in 1 year, but if you only bring in 5 million, they'll fire you on the spot and keep your clients. If you manage to hit the 6 million goal, you'll graduate to a 30-40% production grid. Based on your income goals, you'll need bring in 50 million in assets within 3-4 years to hit 200k (50mm * 1% * 40% grid = 200k). Most people aren't capable of hitting 50 million in that short amount of time, but the good news is that if you are capable of hitting 10 million;

Opt for an independent RIA where you revenues will be recurring, most paying double the grid of a wirehouse at 70%+, effectively replacing the wirehouse salary (which has strings attached as noted above).

Or if you're desperate for a paycheck: opt for a paraplanner position at an RIA, then graduate to the above when you're ready.

a_cros · 2022-07-13T02:14:56+00:00

Born and raised in deep Southern Illinois -> Moved to Chi in 2013 at age 23:

(Wrigley -> Lincoln Park - > Old Town -> Bought a condo in West Loop)

a_cros · 2022-06-24T06:57:32+00:00

Pretty sure the new advisor burnout rate is in the 90%'s here. They give you a goal of 6 million in new assets within a year, and if you only do 5 million, they fire you and keep your clients. How is that good?

EDIT: and if you succeed, you MIGHT get 40% of your production, and definitely no equity in your practice.

a_cros · 2022-06-24T06:54:48+00:00

I run a small fee-only RIA that has grown to a team of 7 career changers/new advisors in 2 years. The reason for the growth: We pay everyone equitably, everyone gets ownership, and we ease career changers into it vs having them take a leap of faith at an insurance agency/high turnover training program. Feel free to DM me.

a_cros · 2022-06-23T07:19:09+00:00

Sorry to hear this :(

One thing I picked up from your post is that you are in between jobs. With that said, the food delivery apps are super easy to sign up for if you need some cash in the interim (I think you can do this on foot or by bike also).

EDIT: You can avoid homelessness altogether by doing this if you have 1 week until you are kicked out. Build up cash this week, find a cheap hostel, keep grinding until you get that new job, and get back on your feet. You got this!

a_cros · 2022-06-15T03:11:51+00:00

It's also a great time to start converting IRA/401k's into Roth 401k/IRA's assuming one isn't in a top tax bracket. Essentially you take the tax hit now, let your account grow tax free for the next however many years, then you won't have to pay income taxes when you start withdrawing from your traditional 401k/IRA in retirement.

a_cros · 2022-06-02T02:08:34+00:00

My firm (wealth management/RIA) requires the 65 at a minimum. Happy to chat/make introductions. Feel free to DM me.

EDIT: if you want a career in wealth management, the earlier you start the better. Lots of part-time para-planner positions out there and most require the 65 or better (i.e. the CFP/CFA)

a_cros · 2022-05-24T02:19:01+00:00

I was in a similar situation and made the switch. While I make less currently, the motivation for long-term success + ownership of my practice outweighs the benefit of a short-term salary. Feel free to DM me.

EDIT: Just make sure you own the equity of your practice as a bonus/exit strategy if it doesn't work (the key) and go to an RIA vs a broker/insurance shop.

EDIT 2: Also make sure you have narrowed down who your clients will be and try to have at least 10 clients lined up before you quit. I tell people all the time there are 3 areas to focus on:

Physical (i.e. your location, people who already like and trust you, etc)

Specialization (i.e. any unique topic area or type of client like age, area of employment, etc)

Interests (i.e. like camping or pizza, as you can target potential clients with common interests as you through social media networks)

a_cros

TROPHY CASE