Rookie question on B/D Route

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gettingstarted's picture
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Joined: 2009-09-24

Here's my story, I was with Primerica years back (8) and got out of the business for obvious reasons, just a bad first exposure, but always wanted back.  Recently joined a Financial Planning firm associated with Guardian Mutual Insurance.  They do a real nice job of not just being all about Insurance, do tons of investments which is where I like to focus.  My question is this - am I ok here focusing on investments and doing insurance when needed or would be better to get my Series 7/66 knocked out here then later move on to a wire/bank/indy RIA platform?  Not just environment, but payout as well....Thx.

voltmoie's picture
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Joined: 2008-11-05

If you are happy, making a living, why leave.  At an investment firm your commissions go through the grid which murders your earning power. 
 
Can't speak for going indy / RIA but you'd be silly to go wire/retail broker IMO.

Squash1's picture
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Joined: 2008-11-19

You should try doing some research on the firm before you join them.....

gettingstarted's picture
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Joined: 2009-09-24

That's what I've read, that through our B/D I can make more on investments that I could at a wire/inv house. So I guess would be more about going Indy with someone like Commonwealth, Next, etc...  I love the REIT market...voltmoie wrote:If you are happy, making a living, why leave.  At an investment firm your commissions go through the grid which murders your earning power. 
 
Can't speak for going indy / RIA but you'd be silly to go wire/retail broker IMO.

LeaseNoMore's picture
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Joined: 2009-10-23

I'm an "old" guy making an unexpected career change since my current industry has died because of the credit crunch. 
 
I did the homework and have boiled it down to a mutual ins co., a wire house, and that place that makes you knock on doors.  My prefernce is to sell investments, not whole life policies... but the ins co says "no prob, you can do that here!"
 
They may say that, but all benchmarks for production, bonuses, and even the requirement to get your first paycheck, are based on sales of LIFE INSURANCE (first year premiums).
 
I am very much a rookie, but I have pretty much ruled out the ins co.  My impression is that they know most people don't really want to sell insurance, so they bait us with the sexier, more desirable prospect of being an investment guy too. 
 
Anybody agree?  Disagree?
 
Now my dilema is which way to go between the other two, which can be boiled down to this... would it be easier to find 5 customers with 100k to invest, or 1 customer with 500k to invest?

Moraen's picture
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Joined: 2009-01-22

LeaseNoMore wrote: I'm an "old" guy making an unexpected career change since my current industry has died because of the credit crunch. 
 
I did the homework and have boiled it down to a mutual ins co., a wire house, and that place that makes you knock on doors.  My prefernce is to sell investments, not whole life policies... but the ins co says "no prob, you can do that here!"
 
They may say that, but all benchmarks for production, bonuses, and even the requirement to get your first paycheck, are based on sales of LIFE INSURANCE (first year premiums).
 
I am very much a rookie, but I have pretty much ruled out the ins co.  My impression is that they know most people don't really want to sell insurance, so they bait us with the sexier, more desirable prospect of being an investment guy too. 
 
Anybody agree?  Disagree?
 
Now my dilema is which way to go between the other two, which can be boiled down to this... would it be easier to find 5 customers with 100k to invest, or 1 customer with 500k to invest?

Hey I have a client in equipment leasing. He is still kicking ass, although he said next year is going to be rough. He's one of my biggest, but he could retire today if he wanted to and be fine.

The answer to your question is that it is easier to find more people with 100k to invest. But you would rather have the 500k person. And the longer you are in the business, the "easier" it is to find people with 500k, 1MM, etc. Unless you are Wind. But he's already cornered the market on being Wind.

Not having worked at a wirehouse, I have no clue what it is like. But your background will appeal more to the Jones clientele, in my opinion. And I believe there is more freedom at Jones than a wire.

Good luck.

LeaseNoMore's picture
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Joined: 2009-10-23

Thanks Moraen... You might want to let your leasing buddy know how lucky he is.  Many, many leasing companies (large, small, and in between) have gone away, and more are going everyday.  Problem is... Only GOD qualifies to borrow at a decent rate these days.
 
You are probably right about Jones and that might be my best choice.  I'm having trouble imagining myself trick-or-treating in the neighborhood for investment business.  I have tons of previous leasing customers and prospects who actually know me... I'd far prefer to go after them.  I'll be curious to see how Jones reacts to that concept.  Hopefully, it's all about the numbers.

millionairemind's picture
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Joined: 2009-06-05

I agree with you on the bait and switch with ins co. I looked at going with one of the big name ins co. They sold me on the best of both worlds. Then I found out even though I had a 7 and 66, plus was going to acat clients over. I had to do 5 life policies just to get registered with the b/d. Plus, they no signing bonus ect, the big thing was downline. Did you hear me NO! downline. So I went with Primerica (If you cant tell I was joking on the Primerica part)

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