Best option

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Otane's picture
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Joined: 2008-08-04

50-year old business owner looking to get into investments and/or insurance selling. Any recommendations on companies? Just want firms that can give a platform of growth and that I can own the book (if possible).

Don't have to worry about getting paid, since my other business does that for me. But, that should not be the determining factor.

Thanks

noggin's picture
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Joined: 2004-11-30

If your other business is paying you, why would you start a new venture that may or may not pay you?
 
 

Moraen's picture
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Joined: 2009-01-22

Otane. Your best option is to find an RIA that will let you "keep your book". Or an indy.

I can understand why he might want to do something different. All I know, is if when I'm 50 and I'm looking at doing something... it won't be financial services (at least not in this capacity).

Otane's picture
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Joined: 2008-08-04

Diversifying revenue streams is something that I am shooting for. Everything goes in cycles, and some things don't last that long in business.

Any suggestions on firms that are friendly to older guys that are willing to hustle?

Moraen's picture
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Joined: 2009-01-22

Jones. But they don't let you own your book. They like biz owners and older guys. Where are you located?

Otane's picture
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Joined: 2008-08-04

Thanks for the suggestion Moraen.

Believe it or not, I think this business offers the most stability and growth after you get through those beginning hurdles.

Getting leads and customers is something that never ends in any business. It just seems that the retention rate in this one is higher than any other.   

Otane's picture
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Joined: 2008-08-04

I am in SoCal.

Does brand recognition help in selling products? I know that Jones seems big on the brand look, but don't know if that really matters.

Excuse my ignorance, what is a good example of an RIA?

noggin's picture
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Joined: 2004-11-30

You need to understand that at Jones, they own the book, you do not. At an independent firm, you own the book. That is a very significant difference.

Otane's picture
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Joined: 2008-08-04

Why would anyone start at Jones if you don't own the book? They could theoritically kick you out or change your status anytime?

noggin's picture
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Joined: 2004-11-30

At Jones you are an employee not an owner. In your situation, I would think you would want a scenario that you were the owner .

SometimesNowhere's picture
Joined: 2008-12-22

iceco1d wrote:Jones isn't going to be a good fit for you.  You don't own the book, AND they most likely aren't going to let you keep your other business running while you work for them. 
 
Same thing with Wells, Merrill, UBS, Morgan Stanley Smith Barney, etc.  You are going to want to start with an indy office of Raymond James, LPL, Cambridge, Commonwealth, and RIA, etc.
 
x2.
 
I know of people who have held very non-threatening, non-competitive positions where there they had no conflict of interest that they wanted to keep because they enjoyed the job and Jones insisted that not keep it. Probably not a match if you want to keep the business.

etj4588's picture
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Joined: 2008-08-18

Otane wrote:Does brand recognition help in selling products?
 
When you first enter the business, you think it does.  What you eventually learn is that it does not.

deekay's picture
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Joined: 2007-05-15

Otane, what markets do you want to target?  Do investments or insurance interest you more?  A few quick thoughts:


  • If you want to be a money manager, learn the investing ropes through a wirehouse, Ed Jones, or hook up with an independant investment advisor.  With all but the indie, you will not own your book.  Downside - all insurance will have to go through a payout grid.  It may not be an issue at an indie firm, but it will be an issue at a wirehouse or Ed Jones.

  • If you want to sell insurance, look at the major mutuals (Northwestern, Guardian, Mass Mutual, NY Life).  Also check out Met, New England Financial as well.  They give you varying degrees of control over your book.  I know that you own your own book at Guardian and Mass, but not sure of the others.  If you want to target businesses, this is a better route - your market will be expanded beyond those who have investable assets.  However, your investment training will be mixed at best.

  • Above all, go with the local office that will give you the best chance of succeeding.  This is a tough business with a high attrition rate. 

I hope this helps.

Moraen's picture
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Joined: 2009-01-22

An RIA can help you get started. Problem is, most RIA's want you to have a little experience. I don't know about anybody else.

I know you said you wanted to own your own book, and there are RIA's that put it in the agreement (for instance, our contract takes it one step further and states that if you decide to leave, WE won't solicit your clients).

I pointed out Jones simply because they like middle-aged (sorry) business owners.

You won't be happy there or at any regional or wire if you want to own your own book.

If there are good indy shops near you, see if they are hiring. It's likely that they are.

B24's picture
B24
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Joined: 2008-07-08

This industry presents a problem for people with no experience.  You basically either HAVE TO start at a captive firm (Wire, regional, etc.) or find an RIA or independant firm willing to take a newbie.  The only independants in my area that have hired newbies hired guys out of B-School that started as "portfolio analysts", graduated into servicing the smaller clients, and eventually bringing in their own clients.  But these are large indy firms (as in top 10 in the country) with close to $1B AUM.  One has like 35 employees, and the other has about 30.
I can't imagine a shop with just a few guys hiring a newbie.  Unless you had some distinct background (massive network, former lawyer/CPA, etc.), most won't take a shot on you.

edjgp123's picture
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Joined: 2009-07-14

noggin wrote:
At Jones you are an employee not an owner. In your situation, I would think you would want a scenario that you were the owner .

mmmmmm
not an owner.........LP, profit sharing, 2 trips a year around the world........
 
Yes, I am a Owner...........

SometimesNowhere's picture
Joined: 2008-12-22

edjgp123 wrote:noggin wrote:
At Jones you are an employee not an owner. In your situation, I would think you would want a scenario that you were the owner .

mmmmmm
not an owner.........LP, profit sharing, 2 trips a year around the world........
 
Yes, I am a Owner...........
 
I believe that you mean "an owner".

Hey Kool-Aid's picture
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Joined: 2008-03-30

Could this be the return of ....dare I say it....DJ??????????????????????????

SometimesNowhere's picture
Joined: 2008-12-22

Hey Kool-Aid wrote:Could this be the return of ....dare I say it....DJ??????????????????????????
 
I was thinking the same thing.
 
From the overuse of the elipses to the poor grammar to the quote in his signature that is randomly interrupted by a comma, there are some striking similarities.
 
Here comes the vehement denial...

edjgp123's picture
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Joined: 2009-07-14

Geez....I must sure love the kool-aid........lol
 

FORTUNE, Jan. 26, 2009
For the 10th year, Edward Jones was named one of the “100
Best Companies to Work For” in America by FORTUNE
magazine in its annual listing. The firm ranked No. 2 overall
and No. 1 on the magazine’s Best Large-sized Company list.
These 10 FORTUNE rankings include top 10 finishes for
seven years and consecutive No. 1 rankings in 2002 and 2003.

Otane's picture
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Joined: 2008-08-04

Thanks for the information. Even though EJ looks like a good outfit, there seems to be many firms that offer you control over your book.

If a company is paying you commissions, and not an ongoing salary, it makes no sense to relinquish control of your book. If they gave you a salary and lower commission then I would think otherwise.

I have another question:

Is it better to go with a firm that offers both insurance and financial products?

Moraen's picture
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Joined: 2009-01-22

edjgp123 wrote: Geez....I must sure love the kool-aid........lol
 

FORTUNE
, Jan. 26, 2009
For the 10th year, Edward Jones was named one of the “100
Best Companies to Work For” in America by FORTUNE
magazine in its annual listing. The firm ranked No. 2 overall
and No. 1 on the magazine’s Best Large-sized Company list.
These 10 FORTUNE rankings include top 10 finishes for
seven years and consecutive No. 1 rankings in 2002 and 2003.

"Got to be starting somethin', got to be starting somethin.."

Hey Kool-Aid's picture
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Joined: 2008-03-30

LOL Moraen

Otane's picture
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Joined: 2008-08-04

iceco1d wrote: Jones isn't going to be a good fit for you.  You don't own the book, AND they most likely aren't going to let you keep your other business running while you work for them. 
 
Same thing with Wells, Merrill, UBS, Morgan Stanley Smith Barney, etc.  You are going to want to start with an indy office of Raymond James, LPL, Cambridge, Commonwealth, and RIA, etc.

So, Wells, Merrill and etc., don't let you keep the books?

I looked at the indy's and it seems that they don't have any training. what do you suggest? I was thinking of contacting the regional offices.

deekay's picture
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Joined: 2007-05-15

iceco1d wrote:Otane wrote: iceco1d wrote: Jones isn't going to be a good fit for you.  You don't own the book, AND they most likely aren't going to let you keep your other business running while you work for them. 
 
Same thing with Wells, Merrill, UBS, Morgan Stanley Smith Barney, etc.  You are going to want to start with an indy office of Raymond James, LPL, Cambridge, Commonwealth, and RIA, etc.
So, Wells, Merrill and etc., don't let you keep the books? I looked at the indy's and it seems that they don't have any training. what do you suggest? I was thinking of contacting the regional offices.
"Keeping the book" is a shaky phrase.  People leave Merrill, EDJ, Morgan Stanley, etc. ALL THE TIME.  It's just a matter of how much a hassle the process is, and what you have to do to make the move successful. 
As long as you aren't selling proprietary products, you can move in the future and take at least half your clients (search this forum to get a better idea of what I'm talking about). 
You are correct that none of the indy firms have vast training programs...if you find the right office, perhaps you can find a senior FA that is willing to train you.  You may want to look @ Raymond James, they have several different "channels," maybe one of them would fit you.
Anonymous/Deekay...do you guys know if the insurance b/ds would allow him to keep his current business and become a producer?
 
It works the same as being at any other B/D.  I would imagine it wouldn't be as cut-throat as leaving a wire to go to another firm.  Depending on the insurance company, if you leave the company, you can relinquish your career contract and get a brokerage contract, thus allowing you to continue to service your clients.

Otane's picture
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Joined: 2008-08-04

Thanks for the information. It is alot to think about.

Otane's picture
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Joined: 2008-08-04

What do you guys know about ICM?

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