Thinking about Going Indy

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MOTU's picture
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Joined: 2005-12-09

Is it possible to go independent when starting out if you have the capital to do so and only a few clients?  Has anyone here gone independent from day one?  I have a series 7. Self-studied with Passtrack (great study book) and passed.  I have started a small muni firm but want to know about indies. Any advice? 

troll's picture
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Joined: 2004-11-29

Mostly likely it is unwise to START indy unless you can set yourself up with a good mentor who has experience and willing to provide you a little guidance.

executivejock's picture
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Joined: 2005-06-29

Would one have to complete the principal tests and managerial tenure?
Also an indy firm has to back the principal and would take on a lot of risk starting a new broker/PFA in this position (if possible after first sentence).

MOTU's picture
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Joined: 2005-12-09

Sorry. I meant to say I started out at a muni firm.  I have several NFL connections and music industry peope that want to invest and I really am not at a firm that is trully full-service.  I need to be able to work independently and also be able to provide bonds, stocks, mutual funds, REITs, PPs, etc.  But I don't want ot go to a wirehouse either.

stokwiz's picture
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Joined: 2004-12-04

I went indy my third year in the business.After going to the office everyday and being surrounded by under performers and a chatty secretary, I found I couldn't get much work done, and only received a 50% payout. I was concerned about name recognition, but found clients really don't care what firm you work for, if you can prove your professionalism and empathy for their unique situation. Being indy has many good selling points- no proprietary products, no sales quotas, etc. I receive  an 85% payout on securities and 100% on insurance products, also do taxes. Total freedom. If you do what your supposed to do each day (25 contacts, set 2-3 appointments, meet 2-3 appointments) you'll make a helluva lot more money as an independent, be better able to serve clients, and OWN your book of business.
Go for it
Stok

MOTU's picture
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Joined: 2005-12-09

Sounds just like what I need.

troll's picture
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Joined: 2004-11-29

executivejock wrote:
Would one have to complete the principal tests and managerial tenure?
Also an indy firm has to back the principal and would take on a lot of risk starting a new broker/PFA in this position (if possible after first sentence).

Shouldn't you know this after spending over a year 'investigating' becoming an advisor at an indy firm?

richardmlake's picture
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Joined: 2005-03-31

Take your  66 test and become an RIA. Then hook up with a indy broker for the commission products.    I went this way recently and am having a great time. Your clients will love you for it since you won't be pushing products to make commissions.

bankrep1's picture
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Joined: 2004-12-02

I know of two people who started this way.  You might want to find an indy to team up with.  You will need a principal w/ 24 license.  Tough test I hear.

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