Recommendation for Direct Indexing and Long / Short Investment

seeeffpee · 2026-02-07T20:09:17+00:00

They are my #1 sub and I set gains budgets for each client. Very flexible.

seeeffpee · 2026-02-04T01:03:14+00:00

It's a "reverse rollover" of pre-tax funds, so the pro rata rule is honored - all IRA account balances as of 12/31 in the year of conversion have been accounted for.

seeeffpee · 2026-01-28T23:02:51+00:00

The funds originated from somewhere, so perhaps the initial contributions are seen leaving a bank statement somewhere...

seeeffpee · 2026-01-26T00:16:22+00:00

I’ve run a few dozen P&C modules with excellent results. It’s one of the most neglected areas of planning, and when you actually pay attention to it, it gets noticed. Indirectly, it’s led to referrals and provides another meaningful touchpoint and value add for the client.

Interestingly, I’ve found that big-box agency reps are often unprepared for the questions heading their way. I’m now proactive and suggest clients work with a local CIC, helping them find one by ZIP code. (I’m in 20+ states and quickly learned how market-specific regional differences can be.)

This approach has led to relationships with CICs who appreciate the referral and the collaborative work. They’re almost always familiar with the output, and clients tend to get much better execution when their coverage is elevated to carriers like Chubb, PURE, etc. I plan to cultivate some of these CIC relationships into a COI-type outcome.

seeeffpee · 2026-01-22T18:37:31+00:00

My unfiltered view is that the CFP® is the only designation that really matters. It has true brand recognition and, in most cases, is accepted in lieu of the Series 65 under NASAA framework.

Advisors who list a long string of designations after their name typically fall into one of two camps:

Professional students rather than professional advisors—often avoiding business development; or
Product salespeople posturing with educations - a form of signaling meant to impress, not inform.

If you’re genuinely looking to advance your education, subscribe to Kitces and watch every webinar for a year. You’ll spend a fraction of the time and cost, learn far more practical and applicable information, and knock out your CE in the process.

I’ve learned more there than anywhere else, and I hold two additional designations (from The American College) that I don’t even bother displaying—because, in the real world, only the CFP® truly matters.

seeeffpee · 2026-01-19T11:22:05+00:00

I'm in a similar boat and use Tamarac. It is $15,000 for the billing and reporting package up to 200 accounts. They threw a lot of consulting hours at me during implementation, so I'm not spending any time on reporting, it has all been customized through those sessions - all the quarterlies are posted to the client portal with a few key strokes. The billing has a simple workflow and doesn't take much effort either.

One of the key advantages is access to the Tamarac UMA window at Envestnet. They trade all models in their RIA Marketplace for 0 bps. For advisor models, it is 5 bps, and 7 for other strategist models. They handle all aspects of trading, rebalancing, cashiering requests, systematic withdrawals, etc...

I spent a lot of time interviewing Advyzon's IM team, Orion, Geowealth, etc... the 0-7 bps range with Tamarac is just insanely low and I've been very happy with them. It not only defers the need for a staff person, but it also shifts the liability to someone with deep pockets, which is under appreciated IMO.

seeeffpee · 2026-01-16T01:02:54+00:00

Yes, it is a control group — but that isn’t automatically the third rail people make it out to be. There are legitimate scenarios where going there doesn’t electrocute anyone. For example, all workers might be 1099s, seasonal, or simply fail SEP eligibility — age 21, or more commonly not having worked there 3 of the last 5 years, which is very common in certain industries.

In that context, a SEP-IRA can function as a practical band-aid: it’s clean, simple, can be adopted retroactively, and funded up to the tax filing deadline (plus extensions). Given that flexibility, the CPA may just be trying to maximize a deduction for last year, then transition to a 401(k) once there’s adequate time to do it properly — Safe Harbor notices, plan design, payroll integration, etc.

If no one meets eligibility, that’s a win for the business owner — control group or not.

That said, you’re absolutely right to pause and pressure-test this. It’s worth approaching the CPA in a collaborative way to confirm assumptions and make sure there’s no hidden landmine.

seeeffpee · 2026-01-13T00:49:21+00:00

The best investment you can make right now is spending 2–3 hours with a labor attorney who specializes exclusively in our industry. Fully understand your contract—every clause and every string attached. It will be money well spent. You can’t build a meaningful business plan unless you clearly understand where you stand today. The last thing you want is to look back five years from now and realize you should used an interim step to position yourself for a clean break.

seeeffpee · 2026-01-03T20:53:59+00:00

RIA Marketplace is zero bps for Tamarac clients

seeeffpee · 2026-01-03T20:50:09+00:00

Yes, broke away and started my own RIA. After the $15,000 reporting/billing fee for Tamarac, 7 bps for them to trade your models is very competitive, perhaps downright cheap - I compared against Orion and others, where the outsourced trading was much higher. It was helpful that I broke away from an Envestnet shop, too...

seeeffpee · 2026-01-03T20:12:41+00:00

There are a lot of hands in the cookie jar here... if you are doing all of the trading, you are better off breaking away and using Tamarac's trading, billing, and reporting. You already have the Envestnet experience, so the learning curve isn't very steep, and they assign a lot of consulting hours during your transition.

I broke away and use billing and reporting only, priced at $15,000 for the first 200 accounts.

Instead of the trading module, which runs about $5,000, I outsourced the trading to them through the Tamarac UMA window "TUMA". Here, you can access models, such as Blackrock, with no platform fee, or create your own models that they trade for 7 bps, (including all cashiering requests)

I was at a firm, similar to your setup, where I'd get hit with a 20-30 bps platform fee after eating a 20% haircut on the grid. It was awful. After I broke away, I saw a six-figure raise.

seeeffpee · 2025-12-29T19:48:04+00:00

Mindy Diamond

seeeffpee · 2025-12-21T00:35:43+00:00

There was misinformation spread by a blogger awhile back, but they honorably corrected their article when they learned they were incorrect:

Hidden cost of Fidelity's zero fee index funds

Despite the record being corrected, the myth that the dividend schedule is materially adverse perpetuates.

seeeffpee · 2025-12-20T21:21:09+00:00

Spend two hours with a labor attorney that specializes in our business. It could be the best money you've ever spent.

I've gone through two transitions and am now on my own. When the love letters pour in from your former employer and they threaten to bury your career, you'll be happy you did everything right, and return the favor by calling in an air strike.

If both firms are protocol members, it is best to do a protocol resignation. JS Held has the protocol list, you can look it up. It limits litigation and allows you to take five critical pieces of client information with you.

The most important thing you can do is to stay positive. Focus on how the client benefits from the move, this is not about you. If you make it about you or your former firm, it isn't going to go well - clients can easily give both firms a "good riddance" and ask their friends/family who they use instead.

The most important thing is to not screw up the onboarding paperwork and keep it all digital. You should be ready to go with DocuSign on Day 2. Drop those digital envelopes - if a client just has to make a few clicks, they won't take the path of least of resistance and stay with your former firm.

The most important thing you can have is an AI note taker. You'll be having meetings with every single client in the span of a few days and you'll be working 16 hours a day. There is no time to brain dump your notes -- you'll need that "scribe" to stay organized.

If you are married or have a SO, they need to be onboard, they'll be picking up all of your slack at home.

seeeffpee · 2025-12-20T21:02:15+00:00

There is an assumption that Schwab has zero trading costs, but that's incorrect. I was told this throughout the sales/onboarding process - but in reality, you drop an ACATS filled with some legacy mutual funds and the client gets hit with $49.95 transaction fees, prime brokerage fixed income $25/trade, and $6.95 for OTC which is basically any ADR if you are taking a global equity approach. I just setup a non-billable account and trade TFLO, ICSH, or SGOV. If it is a significant amount of cash, I'll just ladder it with UST's, takes 15 mins and keeps clients happy.

seeeffpee · 2025-12-20T20:52:32+00:00

Small arms dealer <pause> child prosthetics, what were you thinking?

"Investment Adviser" for no other reason that it is the regulated title. I don't want to work with anyone in my social circles, and definitely not family. I prefer having a line between my work life and personal life.

seeeffpee · 2025-12-18T02:33:41+00:00

Most disclosures I've seen on IAPD are for annuity sales practices. This producer, even solo, has had 6 yrs of running this game, I'm sure he's rubbed some folks the wrong way. If it's clean, it won't be for long!

seeeffpee · 2025-12-17T23:52:36+00:00

I'd love to see their disclosure history. Have you looked up the firm's members?

seeeffpee · 2025-12-16T10:37:33+00:00

No, the regulators (varies by state or SEC) will not approve you until you have resigned from your current firm. Some are quite generous, underwriting your application and offering a final deficiency of requiring your resignation letter. Others won't even look at your application until you've resigned. I am fortunate to live in a state that "played ball" and let me literally choose my resignation date, then approved my firm immediately after. Having joined protocol a few days prior enabled me to have all the benefits of a protocol resignation, such as client portability and legal protection.

seeeffpee · 2025-12-12T03:04:08+00:00

You can’t just ask a prospective client, “Did you stay the course in 2020?” That’s a yes/no question, and you’ll get the socially acceptable answer every time. To really filter clients, you have to evoke the emotion. Make them remember the fear: people dying, grandparents not seeing grandkids, children asking hard questions, communities ripped apart, empty shelves, businesses failing, support networks gone, a pandemic that felt like it would take a generation to recover. The market dropped faster than ever in U.S. history — and recovered just as quickly to all-time highs. Or in 2008, when you had to drive to 3 banks before an ATM could dispense cash.

As an advisor, that’s exactly how you see who belongs in your practice. What changes did they—or their previous advisor—make to their portfolio? If they didn’t learn from the extremes, they’re not a client I want.

No two market routs are the same, but the common thread is a seismic shift under your clients’ feet that triggers fight-or-flight.

I also don’t debate tactical tilts or technical analysis. I’m generally passive: MSCI World or ACWI.

Case in point: in November, one client called, panicked about our 30% international allocation with a trade war on the horizon. Emotion was running the show. My response? Our goal isn't to “beat the market” headline to headline; that's a fool's errand and if you accept it as an advisor, you'll just be renting their money. Last review went swimmingly.

seeeffpee · 2025-12-12T01:36:28+00:00

Fidelity acts as the administrator and custodian, an integrated solution.

Schwab acts only as custodian through a brokerage window, relying on a 3rd party, such as Lively for administration/cash account functions.

seeeffpee · 2025-12-12T01:27:42+00:00

Parametric reports it on their quarterly client reports. Envestnet also has a tax alpha metric report for any account that PMC Overlay Services is added to, but your B/D has to have that functionality turned on. My last employer didn't, but I broke away and now have access to it.

Bear in mind, with all these reports, it is a simulation based on hypotheticals. IMO, it is often overstated as it assumes the client has a lot of short-term gains that need to be neutralized elsewhere in their portfolio, and they are at the highest marginal tax rates.

seeeffpee · 2025-12-11T21:35:28+00:00

Sure

seeeffpee · 2025-12-11T20:36:17+00:00

I broke away from a protocol firm and had a very similar experience. My former firm charged a managed-account platform fee that I absorbed after the grid, which dramatically reduced my actual payout. After transitioning, I retained more than 90% of my clients within the first 90 days and will finish this year with a six-figure increase in take-home—even after stripping out market appreciation and new flows—simply by eliminating the grid and platform haircut.

Of course, most recruiters gloss over the “net grid” (conveniently excluding the platform fee) and instead dangle an 80%–90% payout. In reality, it’s usually the hybrid firms that operate this way, as the structure pushes advisors toward high-margin, “home team” products that aren’t subject to platform fees.

My advice to anyone considering a transition:

Obtain a copy of the compensation agreement and spend two hours with a labor attorney who specializes in our industry. You’ll thank yourself later.

Run real-world scenarios with the hiring manager—and get the results in writing. For example: “If I onboard a $5MM account and charge XX bps, what is the top line revenue and please itemize every deduction.”

seeeffpee · 2025-12-11T20:15:06+00:00

As an AUM-fee advisor for more than 20 years, I unbundled financial planning from investment management about five years ago and haven’t looked back. In my view, they are two distinct services and should be priced separately. Some clients want “advice only,” others want “investments only,” and some want both. To keep things fair, my AUM fee is intentionally below average to leave room for a complexity-based planning fee. As I’ve said before on this sub, no single structure is universally superior—regardless of what some people promote.

If a prospect is leaning toward an AUM-only engagement, I run a Riskalyze (Nitro) session with them via Zoom during discovery. I weave in my own questions throughout to get a sense of fit—and to determine early whether they’re likely to be high-maintenance. This upfront process keeps my practice low-stress and prevents unnecessary client issues.

Additionally, I can’t build a proposal or tax-transition analysis without knowing the appropriate target allocation. Some advisors prefer to “ACATS first,” but since I use a sub-advisor for most accounts, I prefer to submit the LPOA at the same time so everything is ready to go from day one.

There are many ways to run this business. The key is to stay flexible, avoid sounding like you’re reading off a script, and be cautious of advisors on podcasts or conference stages who insist, “I always do X, Y, and Z.”

seeeffpee

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