To be, or not to be, Indy is the question

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companyman's picture
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I've been watching the threads for awhile, but haven't had anything pertinent to add.  Hopefully having my first post be a new thread doesn't piss anyone off.
Anyway, I'm a 3 year Jones guy.  My login is pretty much a joke, I'm not now, nor have I ever been a company man.  EJ is a good firm, I like most of what we do, but I'm coming up to a crossroads and starting to look around.   I've known all along that there is more money to be made by going independent, but that never really grabbed me too much.  Not that I didn't want the money, but I was content enough with what I had going.  I've been mostly happy.
I run a pretty simple business.  I was a new/new and have grown my office to $20 MM + in 3 years.  Most of my income is from mutual funds, annuities, and life insurance.  Some bonds, but less than 15% of my business is done there.  I like my mix.  Even though I do most of my business within the preferred families, I branch out where I see fit.  The American Funds reps aren't allowed in my office.  I won't use them.   I use 2 (or more) fund families with any client with more than $100K, and compliance leaves me alone because I can justify why I structure it that way.   My clients are with me because of the relationship and the style with which I manage their money.  
Like I said, I'm mostly happy with things.  My regional leader is fantastic.  He leaves me alone to run my business and I see him a couple times per year.  I'm in a high growth area and we are likely to split regions very soon.  I know which region I'll be  in after the split and I want nothing to do with it.  Very hands on RL who demands participation.  Not what I want.  I don't need it, don't want it.  I'm above standard as I hit segment 4 in under 2 years, I've got a good mix, good office, good location, good everything. 
My thought is that if I'm tossed into that region I may just go the indie route instead.  I run my office with little contact from the firm, other than audits.  I couldn't care less about diversification trips, I sell them and use my time share anyway.    My assistant will absolutely go with.  I really only care to take 65% of my clients with.  Although I operate just fine in a commission environment, I know it would be useful to be able to offer a fee based platform to some clients. 
My questions are:  What angles have I not thought of?  Which indie's would the best fit for a guy who is generally happy within the EJ structure?  What is the actual cost to get an indie office off the ground? (ballpark)  Do I bother trying to convert any of my existing clients to fee based or let them be? Truth is, I'd structure their accounts about the same way they are now anyway. 

USAF-Retired's picture
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C-Man
Sounds like you're thinking things through quite well.  I think you can enjoy doing business the way you do while keeping so much more of the money YOU MAKE!! It wasn't Jones who got you the clients, it was you!! Keep them happy, do them right, and screw the GPs.  Why should Weddle make $9 million and Rich Malone make $7 million off your hard work?  You'll be much happier on your own and a lot richer for it!!  Jump man jump!!

Indyone's picture
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Joined: 2005-05-31

A couple of thoughts that might be of use to you...
1.  Buy "Starting Your Own Practice: The Independence Guide for Professional Service Providers" by Robert Fragasso.  While this book is helpful to anyone in the service industry considering striking out on their own, it was written by an investment advisor who went independent.  I was fortunate enough to speak with the author via teleconference and there is very little that this guy hasn't thought of about making the move.  Read this book cover to cover before you even start planning a move.  Among other things, this book will help you decide if independence is for you.
2.  Although it's apparent to me that you've had early success, you are on the low end of where you need to be in experience and AUM for a move to independence.  Sure, you'll probably find a good firm willing to take you at your current level, but another year of building your business and strengthening client relationships probably won't hurt.  I've heard five years in and at least $30 million AUM as an acceptable metric for going independent.
3.  Both Raymond James and LPL appear to be good fits for Edward Jones reps.  My recomendation is to visit both of them if they'll foot the bill.  RayJay may not based on your numbers, but I'm pretty sure LPL would.  I don't know where Commonwealth fits in the mix, but I would try to visit at least two potential firms if you decide that going indy is for you so you can get some perspective and make a more informed decision.  The last thing you want to do is move twice.
4.  Don't jump for the money...jump because owning your own business appeals to your personality.  Odds are, you may very well make less money the first year and you may go awhile without a paycheck (I went about six weeks).  You'll have some hard work, you'll face unexpected snags, and you'll have to take care of things that Jones takes care of for you now (such as paying your assistant).  If your move is all about more money, you'll likely be very disappointed initially (don't fret though...the money will come later!)
5.  Take your time making the transition and plan, plan, plan.  Keep everything top secret.  This is a game that you must play to win.  Operate (and act) like everything is fine.  Your exit should come as a complete surprise to your firm, so the fewer people in the loop, the better.  Fragasso even recomends making your vendors sign confidentiality agreements.
There's a million more things I could tell you, but if you take your time considering the decision and read the book, I think you'll be OK...good luck.

companyman's picture
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Joined: 2007-04-10

What you say about AUM makes sense.  I wouldn't think about leaving within the next twelve months, as I want to get some things taken care of before/ if i take the indie route.   I figure I should be at/above $30million by the end of '07.  My concern is setting these people up in commission based plans if I am considering some of them to be candidates for fee based in the future, though.
 
Like I said, I'm just starting to consider this.  There is no hurry as I'm operating quite well within the Jones system.

companyman's picture
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oh, and it definitely isn't just about the money.  My lifestyle can be supported at less than $70K which is well under what I make now.  It is really more of a lifestyle issue.

Indyone's picture
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Joined: 2005-05-31

OK then, if someone is a candidate for fee-based, use C shares...that migrates well to a fee-based platform.
My move was all about freedom.  The money that came later was just icing on the cake.

troll's picture
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Joined: 2004-11-29

Companyman-Congrats on your focus, hard work, and resultant success.  It sounds like you have already thought a lot of things through.Indyone knows what he is talking about, and I will echo his sentiments as to the important of advance preparation.  I was not from EdJones, but spent over a year planning my transition.  This advance work proved to be invaluable.

skolbrother's picture
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Joined: 2005-07-12

c-man, when and if you jump, transition to fee based @ the same time. it is not as difficult as you may think. this will take planning and on your part & understanding why the fee based platform will be advantageous for them. in the mean time use c shares as it will help you when the transition comes.  i realize you think you have offered your client a full menu, but quite simply you have not.
If you happened to use asset allocation funds you may have a tough transition to fees. otherwise your menu has been limited, pm me if you want ideas on how to transfer and transition at the same time. it can be done.

spikedkoolaid's picture
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Companyman-
I am with LPL and it was a good transition.  I would tell you that it will take between $65,000-$85,000 the first year to run your office depending on your part of the country.  I spent $90,000 my first year including profit sharing contributions. 
I grossed around $570,000 in my first 12 months at LPL. 
The only other thing that I would reccommend is to ask the firms you are considering how many Jones' reps they have recruited in the past three years. 

troll's picture
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spikedkoolaid wrote:I grossed around $570,000 in my first 12 months at LPL. 
That rocks!

now_indy's picture
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Joined: 2006-07-28

For your sub-$100K accounts, I would start to open them at the fund company. That makes it SO much easier to move, AND the client won't have to pay an ACAT fee.  Keep in mind that most Indys will give you some type of upfront money (1-3%).  I used the money LPL gave me to cover my client's ACAT fees. I spent about $2500 just doing that. Especially now that Jones is charging even for regular account transfers, it can get pricey.  However, covering the ACAT fees definetly helped to get some people who may not have come with me otherwise.

forge1's picture
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Joined: 2006-11-21

I went indy late last year. I looked at RJ, LPL and others. I was set up to go with LPL. At the last minute, I went with Woodbury Financial Services. I did a spreadsheet and compared cost etc. My only regret is that I did not do this years ago.  

Sampson's picture
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Joined: 2007-04-03

I agree that you're doing the smart thing by looking around way ahead of time.
The only thing I have slightly disagree on is every time anyone asks about going independent, they always get the same 2 firms suggested to them. LPL and RAY JAY.
While both firms have their strong points, if you're not doing $500,000+ in production (and that is still VERY small at either of those two) you're not going to get noticed. Chances are you may be stuck under an OSJ who isn't there to help you grow.
My advice is check out both LPL and RAY JAY but also check out some "Not so giant" firms out there which could play more into your lifestyle and financial issues.
Look at issues of if the B/D helps you market for clients or teaches you how to sell alternative products to clients.
Are you, at some point, interested in building reps into your organization? If you have ever given it thought, check out B/D's to see what plans they have for recruiting for their OSJ's.
I know of one B/D in particular who is spending a little over 1.2 million this year just to recruit for their OSJ's. Something to consider.
Just my 2 centavos. Keep up your due dilligence.
Samps

bspears's picture
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Joined: 2006-11-08

Went LPL going on two months ago.  Looking back at what I would do differently....Kept my pipeline flowing through the transition...I basically quit calling about two months before my move and my production went way down at the end.  Prepare 6-8 months in advance...keep it quiet...I spent 16k-18k on buildout and computers, networking, signs, furniture, contact management software etc...I put my assistant on salary to make payroll easier...also a fixed cost on the long hrs early on...stay in touch with your 65% you want to move.
My only concern, as I've stated before, is getting a grasp of the platform.  So much more to offer and so much information flowing from LPL to me...THis is big boy/girl territory and it will take some  time to feel competent.  Also, LPL offers no contact management software...So I purchased ACT for Advisor add on...not as developed as the EDJ contact system, but as I use it I'm getting in a groove. 
Finally, my mental state is more relaxed today than at anytime in the last 4 years.  Expect your family to see you actually smile when you head to YOUR office. 

footsoldier's picture
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Joined: 2006-04-30

Jones is excellent at training you to think like an independent advisor. I especially like your attitude about your AF wholesaler because (not believing the company line)for me the light went on when I looked at my trails. This was my awakening.
In the nearly 9 years I spent with Jones the trails were a little over 40K. In three months as an independent, I created additional trails of 15K per year starting next year. Essentially utilizing the same or similar products when I was with Jones.
I realized  I had made the right decision for me and my family and as a result, my clients will be much better served going forward. I have not yet embraced fee based business, but it follows the trail philosphy. C shares are not the pariah that Jones makes them out to be, and clients deserve true diversification.

bXpress's picture
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There are many indepenent b/d's out there.  I agree with Sampson.  In order to make a career move, you need to look at more than two options.

Indyone's picture
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Sampson wrote:I agree that you're doing the smart thing by looking around way ahead of time.
The only thing I have slightly disagree on is every time anyone asks about going independent, they always get the same 2 firms suggested to them. LPL and RAY JAY.
While both firms have their strong points, if you're not doing $500,000+ in production (and that is still VERY small at either of those two) you're not going to get noticed. Chances are you may be stuck under an OSJ who isn't there to help you grow.
My advice is check out both LPL and RAY JAY but also check out some "Not so giant" firms out there which could play more into your lifestyle and financial issues.
Look at issues of if the B/D helps you market for clients or teaches you how to sell alternative products to clients.
Are you, at some point, interested in building reps into your organization? If you have ever given it thought, check out B/D's to see what plans they have for recruiting for their OSJ's.
I know of one B/D in particular who is spending a little over 1.2 million this year just to recruit for their OSJ's. Something to consider.
Just my 2 centavos. Keep up your due dilligence.
Samps
Some valid points, but you're off on the OSJ level...LPL allows you to OSJ at $125K production...RJ is $200K or perhaps more.  Neither require anywhere near $500K to be your own OSJ.  Even if you are under another OSJ, why on earth would an OSJ who's getting overrides not want your business to flourish?
...and while smaller B/Ds can feel more personal, they may (emphasize may) also leave you hamstrung when competing for more sophisticated relationships.  Just make sure that your prospective B/D gives you all the tools you need to flourish.  IF you have everything you need and are satisfied with the payout, then yes, I can see advantages to smaller B/Ds, but that's a big IF.

Mucho de Tejas's picture
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IndyOne,
I must hand it to you... you are one of the VERY few contributors that always gives an objective viewpoint regarding the virtues of independence. Accordingly, not every advisor runs their business the same as the other and that alone should encourage a lengthy and thorough investigative process by anyone thinking of becoming an independent advisor.
This board is littered with advisors, recruiters, b/d executives, etc. so you never really know what conflicts of interest lie beneath the posts so it is an absolute must for prospective reps to perform their own due diligence.
Good stuff.  

Indyone's picture
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Thank you...although if you stick around long enough, you'll see some of my biases and pet peeves, try as I might to hide them...
I'm generally pleased with my place in the world, although I understand that we don't operate in a one-size-fits-all environment.
I see that as a good thing...

CIBforeveryone's picture
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Joined: 2005-07-12

Your business sounds very similar to mine. Almost a year later after leaving the mother ship to go to RJ I could not be happier. Converting clients to fees is not as difficult as you think. They actually like it better once you've explained it to them from a value standpoint rather than cost as Jones has conditioned their "advisors" to do.
RJ is a very good fit for an EJ guy. Indy with plenty of structure if you want it.
PM me as you get more serious and I'll give you all the info you want.

Sampson's picture
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Indyone wrote:Sampson wrote:I agree that you're doing the smart thing by looking around way ahead of time.
The only thing I have slightly disagree on is every time anyone asks about going independent, they always get the same 2 firms suggested to them. LPL and RAY JAY.
While both firms have their strong points, if you're not doing $500,000+ in production (and that is still VERY small at either of those two) you're not going to get noticed. Chances are you may be stuck under an OSJ who isn't there to help you grow.
My advice is check out both LPL and RAY JAY but also check out some "Not so giant" firms out there which could play more into your lifestyle and financial issues.
Look at issues of if the B/D helps you market for clients or teaches you how to sell alternative products to clients.
Are you, at some point, interested in building reps into your organization? If you have ever given it thought, check out B/D's to see what plans they have for recruiting for their OSJ's.
I know of one B/D in particular who is spending a little over 1.2 million this year just to recruit for their OSJ's. Something to consider.
Just my 2 centavos. Keep up your due dilligence.
Samps
Some valid points, but you're off on the OSJ level...LPL allows you to OSJ at $125K production...RJ is $200K or perhaps more.  Neither require anywhere near $500K to be your own OSJ.  Even if you are under another OSJ, why on earth would an OSJ who's getting overrides not want your business to flourish?
...and while smaller B/Ds can feel more personal, they may (emphasize may) also leave you hamstrung when competing for more sophisticated relationships.  Just make sure that your prospective B/D gives you all the tools you need to flourish.  IF you have everything you need and are satisfied with the payout, then yes, I can see advantages to smaller B/Ds, but that's a big IF.

I either mis-typed my point or it was misread so let me clarify. :)
I wasn't alluding to the fact that a he had to be producing at least $500,000 to be an OSJ. I was saying that at both firms, $500,000 is a small number and if he's not making close to that to have his rep number ready when he calls in to either...
Why would an OSJ collect overrides and not want the business to grow? Come on now... You mean to tell me you've never met an OSJ who gets "assigned" reps, approves the business submitted and does little else to help his downline?? I've seen it 100 times if not more my friend.
Not being argumentative, just factual.
In my opinion, the more firms get fined extensively for doing the wrong things consistently (RJ), the more I tend to steer clear of them.
Also, In my opinion, most LPL guys singing the praises today will be looking for the exit when they sell out, which is exactly they'll do. They are already selling chunks of it here and there...
I don't think small firms are the choice for everyone but I DO think that smaller firms may be a better fit for brokers on their way up in the business who haven't had a chance to sit at the 1mm round table. ;)
Good discussion by all. Loving this forum!
 
Samps

troll's picture
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Sampson wrote:
I either mis-typed my point or it was misread so let me clarify. :)
I wasn't alluding to the fact that a he had to be producing at least $500,000 to be an OSJ. I was saying that at both firms, $500,000 is a small number and if he's not making close to that to have his rep number ready when he calls in to either...
Why would an OSJ collect overrides and not want the business to grow? Come on now... You mean to tell me you've never met an OSJ who gets "assigned" reps, approves the business submitted and does little else to help his downline?? I've seen it 100 times if not more my friend.
Not being argumentative, just factual.
In my opinion, the more firms get fined extensively for doing the wrong things consistently (RJ), the more I tend to steer clear of them.
Also, In my opinion, most LPL guys singing the praises today will be looking for the exit when they sell out, which is exactly they'll do. They are already selling chunks of it here and there...
I don't think small firms are the choice for everyone but I DO think that smaller firms may be a better fit for brokers on their way up in the business who haven't had a chance to sit at the 1mm round table. ;)
Good discussion by all. Loving this forum!
 
SampsSampson-You have referred to LPL selling off "chunks" of the business several times now.  Are you referring to the sale of a stake to private equity firms?  If not, can you elaborate as to what you mean?  Thanks...And by the way, I am not producing at the 500k level, and while I do need to provide my rep number when I call in I have found the service at LPL to be excellent. It absolutely blows away anything I experienced at my prior home, the lovely Swiss owned fancypants wirehouse.

Indyone's picture
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Sampson wrote:I either mis-typed my point or it was misread so let me clarify. :)
I wasn't alluding to the fact that a he had to be producing at least $500,000 to be an OSJ. I was saying that at both firms, $500,000 is a small number and if he's not making close to that to have his rep number ready when he calls in to either...
Why would an OSJ collect overrides and not want the business to grow? Come on now... You mean to tell me you've never met an OSJ who gets "assigned" reps, approves the business submitted and does little else to help his downline?? I've seen it 100 times if not more my friend.  I've not seen it, but I won't say that you are wrong about some OSJ's.  I OSJ for another office and I'm constantly talking with the rep, giving advice and ideas of how to improve production, which helps both of us.  I am close to a couple of other LPL OSJ's and they have the same attitude...helping reps under our OSJ's is both personally satisfying and financially rewarding.  I'm sure what you describe happens, I'm just not sure it's as universal as you seem to think.
Not being argumentative, just factual.
In my opinion, the more firms get fined extensively for doing the wrong things consistently (RJ), the more I tend to steer clear of them.
Also, In my opinion, most LPL guys singing the praises today will be looking for the exit when they sell out, which is exactly they'll do. They are already selling chunks of it here and there... I doubt it.  RayJay is publicly traded, keeps raising their minimums, and put in a nasty VA policy last year that cut VA payout pretty much across the board.  Sure they lost some reps, but it's obvious from the numbers that most of them stayed.  I'm not saying there won't be any negatives withgoing public, but I have a hard time believing that LPL will put in changes that drive all the reps away and destroy their business.  Time will tell, but I just don't see a big seismic shift in how clients are treated when the firm goes public.
I don't think small firms are the choice for everyone but I DO think that smaller firms may be a better fit for brokers on their way up in the business who haven't had a chance to sit at the 1mm round table. ;)
Good discussion by all. Loving this forum!
Samps
I agree...good, civil discussion.  At the risk of spewing too much Kool-Aid, I'll say again that LPL has been very forthcoming and never lied to me, and the platform does pretty much everything I need and several things I don't.  I don't see a need to exit anytime soon, but then again, you never know...

companyman's picture
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Thanks for the replies.  I know you regulars deal with the same questions frequently, so I appreciate the info.    I know I work for the big green monster, and many of you just roll your eyes at my ignorance, but hey... ya gotta start somewhere, right?
My view is that it is/was a great low risk starting point to this career.  I really haven't run into the problems and crap I've seen a lot of you talk about.  I know they exist, but I've got a great situation where I'm at.  No product/production/participation pressures at all.   Even my compliance guys don't give me too much problem for going off the reservation as long as I've got my justification in order.  There are SERIOUS limitations to what we can do, but I'm aware of them.  I don't drink the koolaid, but I can tolerate the system if it gets me what I need. 
Anyway, more questions:
What level of production do I need to be at to make myself attractive to indie firms? Not just acceptable, but attractive?
What level do I need to be at to make a move worthwhile, and set myself up for success?
Right now I've only got my 7/63 and AAMS.  yeah, yeah, yeah, I know.  I do a helluva job managing relationships, i don't have much product focus in my office, and spend A LOT of time with estate planning clients.  I have worked 100% referral since my wonderful eval/grad class.  My referral network works wonders for me here.  Anyway, What licensing certifications do you feel are necessary to make a go of it?  Do I really need my CFP, or is that an added bonus that can be added down the road?
Since I have some time left at the beast but plan on keeping food on my table until I leave, what fund families should I look at that work within the beast's confines AND you think I can feel proud about working with once I leave?
I don't plan on going 100% fee based, so what does partial comm base look like in the outside world?

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companyman wrote:Anyway, more questions:
What level of production do I need to be at to make myself attractive to indie firms? Not just acceptable, but attractive?  I'm guessing 300K.  That would gross most firms about $45,000, which I would think would be more than acceptable.  WHo knows what the real answer is...all I know is that I was between three and four hundred thou production and both RJ and LPL didn't bat an eye at flying me out and treating me like a VIP.  I came from a bank program and I would imagine that $300K in your channel would be even more attractive due to retention rates being higher.
What level do I need to be at to make a move worthwhile, and set myself up for success?  About the same in my experience.  I dropped off by about a third and am gradually working myself back up.  Even so, it didn't take long at all for me to net more than I ever did as an employee, since I'm no longer paying for a bunch of management slugs.
Right now I've only got my 7/63 and AAMS.  yeah, yeah, yeah, I know.  I do a helluva job managing relationships, i don't have much product focus in my office, and spend A LOT of time with estate planning clients.  I have worked 100% referral since my wonderful eval/grad class.  My referral network works wonders for me here.  Anyway, What licensing certifications do you feel are necessary to make a go of it?  Do I really need my CFP, or is that an added bonus that can be added down the road?  The CFP is great for credibility, but I don't think it's critical to your success.  I would say nothing to your clients until you have it as it may take longer than anticipated to get through the program, depending on your motivation.  I'd focus on your business first, but you'll be doing yourself and your clients a big favor if you pick the CFP credential up in 3-5 years.
Since I have some time left at the beast but plan on keeping food on my table until I leave, what fund families should I look at that work within the beast's confines AND you think I can feel proud about working with once I leave?  Plenty here will disagree, but you won't do much damage to your clients using American and Franklin.  If you want to cut your ACAT reimbursement expense, do the accounts direct at the funds.  Just understand that management will probably be suspicious and want to know why you are doing that.  My answer on IRAs was an honest one...I hated to charge a $35 annual IRA fee when I could do the same thing for $10-15.
I don't plan on going 100% fee based, so what does partial comm base look like in the outside world?  Not sure what your question is here, but I do both...am about 40% fee-based and about another 20% in 1% trail brokerage (annuities and C shares).  Overall, I have about a 75bp velocity.  If that doesn't answer it for you, clarify and I'll respond.

noggin's picture
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companyman wrote:
Thanks for the replies.  I know you regulars deal with the same questions frequently, so I appreciate the info.    I know I work for the big green monster, and many of you just roll your eyes at my ignorance, but hey... ya gotta start somewhere, right?
My view is that it is/was a great low risk starting point to this career.  I really haven't run into the problems and crap I've seen a lot of you talk about.  I know they exist, but I've got a great situation where I'm at.  No product/production/participation pressures at all.   Even my compliance guys don't give me too much problem for going off the reservation as long as I've got my justification in order.  There are SERIOUS limitations to what we can do, but I'm aware of them.  I don't drink the koolaid, but I can tolerate the system if it gets me what I need. 
Anyway, more questions:
What level of production do I need to be at to make myself attractive to indie firms? Not just acceptable, but attractive?
What level do I need to be at to make a move worthwhile, and set myself up for success?
Right now I've only got my 7/63 and AAMS.  yeah, yeah, yeah, I know.  I do a helluva job managing relationships, i don't have much product focus in my office, and spend A LOT of time with estate planning clients.  I have worked 100% referral since my wonderful eval/grad class.  My referral network works wonders for me here.  Anyway, What licensing certifications do you feel are necessary to make a go of it?  Do I really need my CFP, or is that an added bonus that can be added down the road?
Since I have some time left at the beast but plan on keeping food on my table until I leave, what fund families should I look at that work within the beast's confines AND you think I can feel proud about working with once I leave?
I don't plan on going 100% fee based, so what does partial comm base look like in the outside world?

Companyman- I am one like yourself in the same boat.  On the MF side I use Franklin Templeton, Davis, Thornburg, First Eagle and some others. I have my AAMS also, and will take the CFP in November, I really feel that helps to separate advisors. I wish you well and keep gathering those assets!!!

companyman's picture
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I bumped into a Jonesee  that left my region about 2 years ago today.  I thought he went ot RJ but it turns out he has been at LPL.    I know that before he left  he was a solid segment 4 guy  and he took  about 80% of his book.  ( i know him and his replacement) .I didn't tell him anything about what I've been considering but he just started talking...   This guy isn't miserable, but he seriously wishes he was back in the fold.  He said he deals with a constant lack of support that makes his extra $$$ just not worth it.   He griped some more but I quit paying attention.  He is the only one I know that went on his own and prefers to be back in the firm.  Any others that you know?And former EJ, current LPL guys - what do you think of his statements that the support is even worse?
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bspears's picture
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Joined: 2006-11-08

I assume since I'm new to LPL's system, I would notice more about the service being received and at this point, I see nothing to make me whine about the service.  Sure we have days were we'll call in twice and ask the same question, just to make sure we're doing something correctly.  But on the other hand, we did this at EDJ also.  I'm suprised by a seg 4 guy complaining about service.  As I've said before, independence is NOT for a person who needs to be told what to do and where to do it.  This is for entreprenuers...self starters, hard workers..etc.  There's a reason we get a  90% payout and using common sense and the training we've all received, it's actually a non issue in my world.

ezmoney's picture
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Joined: 2004-11-30

Your fellow Jonesey sounds like a whiner. He also sounds like one who isn't happy no matter where he is. LPL service is a hell of lot better than jones. I know I worked for them for 2 yrs. Jones support treated the IR like crap, low man on the totum pole. I speak to an lpl support person and they treat me with respect. Big difference in my humble opinion!

Starka's picture
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Joined: 2004-11-30

That's the first time I've heard of a broker wanting to go back to Jones. Still,
if he's not happy he should speak with them. I feel confident in saying that
they'd welcome him back with open arms, if for no other reason they could
demonstrate to the fold that the grass isn't greener. I should think that
Jones would view that as a coup of sorts.

companyman's picture
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Joined: 2007-04-10

yeah, it could be that he is a whiner, but he wasn't one when he was at Jones so it kind of puzzled me.  He was always a guy who worked hard, did well, and didn't complain.  I can't imagine what kind of support he would really be missing.  I mean - if I can't figure out something on the system there is someone I can call to walk me through it ( a la #11), right?
I don't really see how he could come back.  We've had quite a few go to ML and come back, AGE, and SB, too, but I just can't see how he could justify it to his clients.  I'd think they'd lose confidence in a guy who decided he couldn't cut it outside of the big green.
 
obviously LPL and RJ have a version of field supervision (hopefully they're actually trained in what they do)  what does the annuity or LI approval process look like in relation to the hoops you have to jump through at EJ?

Cowboy93's picture
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Joined: 2005-05-10

Strange...either the guy isn't too bright, or really really liked the EJ system
that theoretically took everything off his back with his own BOA, etc.
However, it isn't hard to find 9 other former EJers at LPL and/or RJ. Find
them and you'll likely discover that you've talked to the one of the 10 that
doesn't love it for whatever reason. In other words, posting and reading
here does not constitute due diligence.

OR, perhaps companyman has devised a well-thought out trolling system
to plant doubts in the minds of newer EJ lurkers here who may want to go
indy eventually. Posing as a former jumper only to find that "the grass
isn't always greener" would be quite creative. Oh perhaps I'm just
paranoid.

And his clients would probably understand if he did go back--at least
they know what to expect. If he feels like it was/is better, client would
appreciate the acknowledgement I would bet.

troll's picture
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Joined: 2004-11-29

companyman wrote:I bumped into a Jonesee  that left my region about 2 years ago today.  I thought he went ot RJ but it turns out he has been at LPL.    I know that before he left  he was a solid segment 4 guy  and he took  about 80% of his book.  ( i know him and his replacement) .I didn't tell him anything about what I've been considering but he just started talking...   This guy isn't miserable, but he seriously wishes he was back in the fold.  He said he deals with a constant lack of support that makes his extra $$$ just not worth it.   He griped some more but I quit paying attention.  He is the only one I know that went on his own and prefers to be back in the firm.  Any others that you know?And former EJ, current LPL guys - what do you think of his statements that the support is even worse?
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If he's unhappy about the level of support it's because he's not reinvesting enough of his own money in the business to get help, and in technology that makes things run more efficiently...

companyman's picture
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Joined: 2007-04-10

Cowboy93 wrote: OR, perhaps companyman has devised a well-thought out trolling system to plant doubts in the minds of newer EJ lurkers here who may want to go indy eventually. Posing as a former jumper only to find that "the grass isn't always greener" would be quite creative. Oh perhaps I'm just paranoid. QUOTE]
is your tinfoil hat getting a little tight there?  I am who I say I am, no more, no less.  I certainly wouldn't look to a forum for due diligence, but since you're all so nice and friendly I do appreciate the input.   Knowledge is power and all that.  I'm so early in the process of looking outside that I'm still trying to quantify what it is I don't know.  If other EJers want to stay or go is none of my business.  They can have a great career there, they can have a great career elsewhere.  Ain't none of my business.

Cowboy93's picture
Offline
Joined: 2005-05-10

Well, I would talk to your ex-EJ colleague again and actually pay attention
the whole time....and see if you can glean whatever it is that has tripped him
up or caused him to somewhat regret his decision. Odds are that "it" won't
affect you, but that is something you need to know.

Indyone's picture
Offline
Joined: 2005-05-31

Well I figured that there had to be at least one...
The only negative I've heard from ex-jonsies that I've met is the lack of camraderie.  Some miss the fraternal atmosphere at Jones, but universally, they've told me that on balance, they have more job satisfaction than they had at Jones.  They like the robust platforms vs. what they had, their clients like what their new B/Ds bring to the table.  Granted, I've only spoken with a few, but enough to feel that the former Jonsie that wants to go back would be the exception to the rule.
No one ever said that independence is for everyone.  It's a do-it-yourself world and if you need a lot of hand-holding, it mat not be for you. It sure seems to be the path of choice for a lot of Jonsies, though.

Spinner's picture
Offline
Joined: 2004-12-31

To heck with pay, there is no Regional Meetings going Indy.    What of bunch of brainwash . 

companyman's picture
Offline
Joined: 2007-04-10

How quickly can the process of getting onboard with LPL be done, assuming clean U4, above minimum production, etc?

Cowboy93's picture
Offline
Joined: 2005-05-10

LPL has regional/local Branch Development people (recruiter types) that can
answer that question and have a vested interest in making it happen. I
would go to LPL's website and track down someone...but I think they can
make it happen within a reasonably short period (30 days maybe).

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