403b and Life Insurance Business

1 reply [Last post]
HW's picture
Joined: 2010-05-19

Do most independent RIA's not offer 403b and life insurance?  Have a friend at EJ - him and I are thinking of partnering up (I am a CPA) and becoming independent.  He states that he gets about 9% of his total comissions from 403b and about 5% from life insurance.We could go to a B/D like LPL who would probably offer these options, but then having to pay them a cut.Or, we could go to a firm like TradePMR - and dump the 403b business and life insurance?I am wondering how people that have converted from EJ to independent have tackled this.  And if they did, what resources they used.  

iceco1d's picture
iceco1d (not verified)

EDJ isn't exactly a big 403B player, and neither is LPL.  In fact, I don't think either of their custodial platforms accept 403Bs anymore.To do 403Bs at either firm, you're most likely going to have to work directly with a fund company or annuity company that has a payroll slot at the employer (you can check the TPA of each school/university/etc. that you want to do business in, and see which providers are available for you to use).VALIC has an indy channel that has a selling agreement with LPL, and VALIC is the NEA endorsed 403B provider for teachers, so they have payroll slots at most school districts (but they also have a captive agent channel to deal with).  I know MFS, American Funds, Oppenheimer, ING, VALIC, Modern Woodmen, Great American, Metlife, Security Benefit, and Symetra do a decent amount of 403B biz, and you could do any of them if you're with LPL.LPL and EDJ are both also setup with 403B ASP, which has a decent number of payroll slots nationwide also (but a wierd platform, to be honest).If you go RIA and use TradePMR as your sole custodian, I think you are going to have trouble.  I don't know if TradePMR even supports 403Bs (because of the new regs).  However, Fidelity DOES still do 403Bs and has a decent number of payroll slots.  If you have enough assets to custody at Fidelity, you could use their slots as an RIA, I believe.You might also want to consider a 403B-centric b/d or insurance company (i'm at 403B centric b/d, and if you want info, PM me and i'll point you in the right direction).I've said this before, and i'll say it again...if you want to do 403Bs, you have to dedicate yourself to it.  you can't work with 1 or 2 school districts and make a living.  You have to work with 5 - 10 districts, and cover at LEAST 30 (preferably 40) buildings.  403Bs give you a great "in" to the household for other stuff (Roth IRAs, 529s, old IRAs/401Ks for spouse, referrals, pension rollovers when teacher retires, insurance, ltc, etc.).  Hope that helps. 

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