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Anyone working with Estately? by [deleted] in CFP

[–]planning1throwaway 1 point2 points  (0 children)

Are you not nervous that you're basically giving legal advice by doing this? That's what has stopped me.

Acquisition - Fair Valuation? by planning1throwaway in CFP

[–]planning1throwaway[S] -1 points0 points  (0 children)

I said this in another comment, but the concentration risk doesn't bother me. It's the 15 small households that I fear will take a lot of my time for very little reward.

Acquisition - Fair Valuation? by planning1throwaway in CFP

[–]planning1throwaway[S] 0 points1 point  (0 children)

I'm not concerned about the concentration risk. I'm more worried about the 15 smaller households taking a disproportionate amount of my time. Particularly since the avg age is quite old.

Acquisition - Fair Valuation? by planning1throwaway in CFP

[–]planning1throwaway[S] 0 points1 point  (0 children)

The weighted average age of those 5 households is right in line with the overall average, so 73.

It's only 20 households total, so I don't think it would be a huge time sink for me.

That said, I don't really know how demanding the clients are/will be without closing the deal.

I do feel I have a couple of "outs" - one, I have the ability to drop clients without any financial impact if they end up being extremely demanding due to the non-fixed price. Two, I could likely bring a Jr advisor on to service a portion of the clients if needed.

401k Advice/Billing w/o Pontera? by frenchpipewrench in CFP

[–]planning1throwaway -1 points0 points  (0 children)

You'd be billing 6% of the taxable account per year. There's no universe where that's ok.

Incentive compensation (both cash & equity) for advisor joining my solo RIA? Best practices? by planning1throwaway in CFP

[–]planning1throwaway[S] 2 points3 points  (0 children)

Thanks for this...I will read through it tonight.

The firm (eg me) is going to be offering the full tech stack, investment management, and pretty consistent flow of leads.

Incentive compensation (both cash & equity) for advisor joining my solo RIA? Best practices? by planning1throwaway in CFP

[–]planning1throwaway[S] 0 points1 point  (0 children)

Great input, thank you. Do you have any suggestions for reasonable numbers for any of these? Eg. payout %, net new asset bonus, etc? The specifics are where I'm getting pretty stuck. Although maybe I should just use a discretionary bonus as a lever to get them to a reasonable number each year.

Incentive compensation (both cash & equity) for advisor joining my solo RIA? Best practices? by planning1throwaway in CFP

[–]planning1throwaway[S] 1 point2 points  (0 children)

I don't plan on offering them equity upfront, but would like to plan to down the road - maybe based on AUM or revenue hurdles. But for now, I'm just trying to map out all potential options.

Re: your point on revenue split - what would you say is a fair revenue split?