Raymond James vs. LPL

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doberman's picture
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Indyone:

Man, I didn't know Jeff Foxworthy was a moonlight rep...
Dob, you crack me up...I take it you drive an old Lincoln with a couple of hubcaps missing and the headliner hangin' down and flappin' in the breeze...
---------------------------------------------
Nah, that's my wife's car. She's got a rust stain on the driver's side door that looks like Elvis. Considerin' puttin' it on Ebay and seein' what I can get for it.
I drive the company vehicle, a 1972 4-wheel drive Ford pick-up with balloon tires. No matter how far back in the woods my clients live, I can get to them. I giv'em service with a snaggle tooth smile. 

babbling looney's picture
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Ooooh.. I think we have the same clients.  I just bought a '72 k5 Blazer to impress the guys.**
 
Actually, I did buy one last week.  And I am really excited! No rust, 148K original miles, the top has never even been off. I'm the 2nd owner. I'm going to restore it and upgrade the interior, fix the A/C, add a good sound system. Probably need to install some stepsides because I'm short and its hard to climb in wearing a skirt.   Then, I'm taking it to the show and shine next year, that our hot rod club hosts.

doberman's picture
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Here's a little advertising tip that got me out of a single-wide home and into a double-wide "El Presidente" model in 18 months:
Make up a 3-page flyer about your business, what you do, how you help people, copy of your GED, etc. Be sure to have tear-off tabs at the bottom of the flyers giving your phone number and CB handle. Stick it on the inside door of a bathroom stall. They might as well read while they're taking care of business, right? (I got Lorene, my wife, to post them in the ladies bathroom.)
I also stuck a 1-page flyer above the urinals. No one's going to stand there for 3 pages. Besides they won't have any hands free to turn the page; at least, not anyone born here in the South.
Then just sit by the phone and wait for it to ring.

indytwo's picture
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doberman
what a great marketing idea.  Im going to produce a ton of those flyers with the local EDJ rep's infor on it.  He will love the extra calls
 

troll's picture
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doberman wrote:
Here's my overhead in Southwest Georgia:
Bought an acre of land out in the middle of nowhere: $1,500. I figure anyone who drives this far to see me is going to open an account!
Bought a used, single-wide trailer and parked it on the acre of land: $5,000. (I use this for an office.) Don't want to let-on how much money I make. A double-wide would've been puttin' on airs.
Three mounted deer heads for the office: $450. Gotta let my clients know I share their interests.
Framed GED to hang on the wall: $25. Academic accomplishments are important to my clients.
Five different colored clip-on ties: $15. Gotta look professional!
Hank Williams songs playing in the background, stereo, & speakers: $150. Settin' the mood.
King-size bed sheet to cover my used sofa, in the reception area: $25. Nothin's too good for my clients!
Throw rug to cover the hole in the floor: $25. I was showin' off my new huntin' rifle and it fired.
Case of beer: $15. For when clients get thirsty.
My cousin's old Apple II computer: $10. Nah, it doesn't run. I just keep it on my desk to look state of the art.
Three graphite fly swatters: $15. If you lived here, you'd know why.
Used tv, used vcr, and a tape of CNBC from June 6, 2003: $75. I can't get cable out here and the local stations are fuzzy, using my antenna. So, I replay the CNBC tape (muted) when clients are here.
Yep, I got a pretty sweet deal out here. My clients? They love it! Why, I wish you could see this big wad of money orders I took in just today! And it's all going in a mutual fund with front-end & back-end charges! Sure beats sellin' used cars!     Eat your heart out!!
 
 

So yer' with Primerica then?  How's the recruitin' goin' out thar?

indytwo's picture
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Joined: 2005-06-02

ok lets get serious again!  I have finally made it through the legal/arbitration process.  Man was it an up hill battle.  The only real winner in this whole thing are the attorneys. 
LpL was the cornerstone of my defense.  With out there help I would have been sunk.  Keep that in mind if you are looking at both firms (LPL & RJ).  I know during my research LPL was willing to help on the legal front whereas RJ would only offer advice. 
If you do have an employment agreement have a atty look at it way before you leave.  They can save your a_s! 
For those of you  looking to make the move to indy do not hesitate.  I was scared to death of making the the jump.  However in the end this was the best leap of faith I have ever made.  IF you have the drive to be your own boss and make the big $$$$ go for it!

ExNIRSS's picture
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Sounds like it was rough...what would you have done different re legal/arb?

Mike Damone's picture
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doberman wrote:
Here's my overhead in Southwest Georgia:
Bought an acre of land out in the middle of nowhere: $1,500. I figure anyone who drives this far to see me is going to open an account!
Bought a used, single-wide trailer and parked it on the acre of land: $5,000. (I use this for an office.) Don't want to let-on how much money I make. A double-wide would've been puttin' on airs.
Three mounted deer heads for the office: $450. Gotta let my clients know I share their interests.
Framed GED to hang on the wall: $25. Academic accomplishments are important to my clients.
Five different colored clip-on ties: $15. Gotta look professional!
Hank Williams songs playing in the background, stereo, & speakers: $150. Settin' the mood.
King-size bed sheet to cover my used sofa, in the reception area: $25. Nothin's too good for my clients!
Throw rug to cover the hole in the floor: $25. I was showin' off my new huntin' rifle and it fired.
Case of beer: $15. For when clients get thirsty.
My cousin's old Apple II computer: $10. Nah, it doesn't run. I just keep it on my desk to look state of the art.
Three graphite fly swatters: $15. If you lived here, you'd know why.
Used tv, used vcr, and a tape of CNBC from June 6, 2003: $75. I can't get cable out here and the local stations are fuzzy, using my antenna. So, I replay the CNBC tape (muted) when clients are here.
Yep, I got a pretty sweet deal out here. My clients? They love it! Why, I wish you could see this big wad of money orders I took in just today! And it's all going in a mutual fund with front-end & back-end charges! Sure beats sellin' used cars!     Eat your heart out!!
Bravo!  I think you might have posted the funniest thing ever said on this board.
 
 

cend's picture
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Nah, that's my wife's car. She's got a rust stain on the driver's side door that looks like Elvis. Considerin' puttin' it on Ebay and seein' what I can get for it.
I drive the company vehicle, a 1972 4-wheel drive Ford pick-up with balloon tires. No matter how far back in the woods my clients live, I can get to them. I giv'em service with a snaggle tooth smile. 

OMG it's my old boss! Please no more bluegrass music!!

indytwo's picture
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ExNIRSS
Well i wouldn't do to much different.  The only thing i can think of is being ready for the TRO.  Have all of my documents from my previous employer ready to defend myself.  Othe than that the only other I would do is take more time to get organized before i left.  I cant go into more detail for obvious reasons. 
Im sure glad that LPL held my hand through this process and even they were caugth off guard by the TRO. 
Are you looking to make a change?

ExNIRSS's picture
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Looking strongly @ LPL--mentally, I've already checked out...they offered to take me to SD, but from everything I've read here as well as comments from other brokers who have moved, I don't see where I would benefit.  Solid company, good history, good technology.
Did you get the TRO the following Monday or did they just send the nasty-grams for a while beforehand?  I don't have a copy of my noncom, but I do have a copy of one from someone who started the same week I did...
I've met with an LPL recruiter and we reviewed a business projection which included charges for tech/software, but I'm a little fuzzy on the contact management software they have--or do they have any at all?  I've looked at ACT for financial advisors and it looks good.  Should I purchase this, or does the LPL web system already include something like this?  Appreciate your insight....

Guest1's picture
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Joined: 2005-01-16

Ex, you still here? Go already. LPL is a GREAT place for you.

Indyone's picture
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ExNIRSS wrote:
Looking strongly @ LPL--mentally, I've already checked out...they offered to take me to SD, but from everything I've read here as well as comments from other brokers who have moved, I don't see where I would benefit.  Solid company, good history, good technology.
Did you get the TRO the following Monday or did they just send the nasty-grams for a while beforehand?  I don't have a copy of my noncom, but I do have a copy of one from someone who started the same week I did...
I've met with an LPL recruiter and we reviewed a business projection which included charges for tech/software, but I'm a little fuzzy on the contact management software they have--or do they have any at all?  I've looked at ACT for financial advisors and it looks good.  Should I purchase this, or does the LPL web system already include something like this?  Appreciate your insight....

Go to SD...it will be well worth your time and it's on their dime.  It's hard to describe, but until you see the setup, you don't know what you're missing.  Our posts on these boards don't do it justice...there's so much more to see and learn about.
Use Act for contact mgt...can be bought cheaply (got mine on eBay for less than $50) and it does a very nice job.  If LPL has a contact mgt system, I haven't found it yet, and I doubt if it would be any better than Act.
On the non-compete, I don't think it's a given that you'll get a lot of problems.  I've compared notes and found that I had a similar arrangement to Indytwo and my firm hasn't given me problem one at this point.  In my opinion, the key point is, and they know it, that I signed well after I started with no advance warning, and no additional consideration.  As a result, I don't see them trying to press the issue here, particularly if I stay fairly low profile about things.  I don't send unsolicited letters to former clients, but rather rely on newpaper advertising to get the word across.  I also have several clients who have made the jump across and I know that they are telling other clients about where I went, etc.
The point is, your clients will find you eventually and my opinion is, the ones who won't go to the trouble to move their assets over, probably weren't strong relationships anyway.  Service, service, service your A list before you go, and advertise, advertise, advertise after you leave.  They'll appreciate the service now and will make the effort to find you later.  In between ACAT forms, learn the system well so you will be ready to prospect hard for new clients when the ACATs from your old firm slow up.
...and yes, Guest, if EX wants better product availability, better technology and higher payout, LPL beats the hell out of his current firm...and he should jump.
...and you should go drink some more Koolaid and sell a few more 30-year corporates.

indytwo's picture
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ExNIRSS
Glad to hear your looking @ lpl.  I agree with INDYONE go to SD.  I was unable to go due to the nature of my departure.  I missed a lot by not going to SD. 
Make sure an atty looks at your noncompete.  He/she could give you some thought as to what your up against.  Also ask to speak to lpl legal team.  Dont be affraid to ask for assistance from there  legal team.  They saved my butt that for sure.  Go back on your calendar and get all your dates set.  When did you sign the agreement?  What date did you start with current firm?  Did you get a copy of the agreement before you accepted the job?  Did you have to take a blood test? When?  When did you resign from your previous job?  Do you have a copy of the resignation letter?  Did you get additional consideration for signing the agreement? 
Those are the things you need to know and the docs you need to have before you leave. 
No matter what do not let your current firm back you in the corner.  If they are putting pressure on you because they think your leaving dont give in.   Leave when your ready.  Just remeber this is a war and the want to get the upperhand and you do not want to give that to them.  Go out on your terms you will have a better transition.
 

EIAdvisor's picture
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Guest1,
At what point do you intend to add value to any of these threads?  Enlighten us with your insights...you must have something worthy to say, or do you sit on your Rams beanbag (purchased with your 38% payout) naked in the dark eating Cheetos scouring the broker forums for an opportunity to spill your koolaid?
Just try it....speak intelligently about a topic....any topic.....start a topic...otherwise, stick to tickling your RL's a*s with your nose.
 

troll's picture
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ExNIRSS wrote:
Looking strongly @ LPL--mentally, I've already checked out...they offered to take me to SD, but from everything I've read here as well as comments from other brokers who have moved, I don't see where I would benefit.  Solid company, good history, good technology.
Did you get the TRO the following Monday or did they just send the nasty-grams for a while beforehand?  I don't have a copy of my noncom, but I do have a copy of one from someone who started the same week I did...
I've met with an LPL recruiter and we reviewed a business projection which included charges for tech/software, but I'm a little fuzzy on the contact management software they have--or do they have any at all?  I've looked at ACT for financial advisors and it looks good.  Should I purchase this, or does the LPL web system already include something like this?  Appreciate your insight....

 
They don't have a contact manager.
Make sure you are in contact with their legal team before you pull the trigger.
It's good over here.  Come on in! ;-)
Prepare, prepare, prepare!

indytwo's picture
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ExNIRSS
GO TO SD!  THAT WILL TIE UP A LOT OF LOOSE ENDS FOR YA!
BE VERY CAREFUL ABOUT CHECKING OUT TO EARLY I MADE THAT MISTAKE AND IT COST ME A LITTLE.  TAKE YOUR TIME AND DO THIS RIGHT.  YOU DONT WANT TO BE CAUGHT WITH YOUR PANTS DOWN.  I WAS BLOWN OUT OF THE WATER BY MY OLD FIRM BEFORE I WAS  READY.  I LOST A FEW CLIENTS BECAUSE THEY BEAT ME TO THE PUNCH.  I WAS TO BUSY SETTING UP MY OFFICE WHEN I SHOULD HAVE BEEN IN FRONT OF CLIENTS.
 
 

Indyone's picture
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Joined: 2005-05-31

6 weeks in and very busy...millions on the books so far, with more to come.  I understand my old firm has hired my replacement...twenty-something and no series seven.
As Cramer would say...back up the truck...

Indyone's picture
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Three calls this morning from former clients totalling $1.8 million.  All coming over.  Sounds like my old firm sent a letter out extolling the virtues of their new hire.  I should probably put my former 24 on my Christmas card list...

Indyone's picture
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Update for the curious...halfway through my third month...assets at about $16 million...last four weeks commissions...gross about $20K...net of $17K...$13K after expenses.  That's roughly 65% of gross.
Grossing less than I was at the bank, but making more...and it's early in this game.  Best yet, I actually look forward to going to work in the morning...can't put a price on that...

ezmoney's picture
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Indy,
What % assets did you take from the bank? What was your AUM at the bank? How many years in the biz? Are you paying for an assistant? How about posting your expenses for the curious?

Indyone's picture
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EZ,
I left with about $47 million AUM.  Of that, about $22 million is either "sticky" (bank named as trustee, etc.), small unprofitable accounts or short-term CD rate whores that I don't have any interest in moving over, so if you look at what I consider in play (about $25 million), I've moved or received committments to move about $14 million thus far.  The rest is completely new business.  In short, I've moved a little over half of what I'm interested in thus far, and I could easily see 80-90% of what I am interested in before the dust settles.
Being free of all the unprofitable/time-consuming accounts that in hindsight I should have never opened, has freed up time to prospect new relationships and my pipeline is literally larger than my book at this point.  My goal is to be at $30 million by next summer (12 months in) and have a much more profitable book of business.
I've been in the biz approx 6 years.  I have a part-time assistant that costs me about $1,500/month.  All other expenses including office rent averages about $2,300/month.
freedom to run your own business the way it should be...priceless...

Indyone's picture
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As an update to anyone curious how things are going, I crossed 18 million AUM today, less than five months in.  Sent out Christmas cards earlier this week with a note of appreciation for past support to some clients that I haven't touched and the phone is ringing off the hook today with promises to come by and bring statements...
Merry Christmas to me...

Dudley Dawson's picture
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Joined: 2006-04-27

bump.  Interested in current thought about rj vs. lpl

Indyone's picture
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Well, I'll speak to half of that issue...the half I have some understanding on.  One of the bigger questions I have right now on LPL is how possibly going public may affect my business.  LPL recently sold a substantial share of the company to a couple of VC firms, and the story was all about how the influx of cash would improve the technology platform, etc, etc, etc.  My concern as a relatively new producer with LPL is that productions minimums to maintain your own OSJ will increase substantiallty in an effort to improve profitability.  While my production is certainly going the right direction and I don't think I'll have any problem hitting their current bogey ($125K), I hope they'll be patient with me if I'm a little short of the raised bar.  My guess is that if your trend is moving the right direction, they will.  Other than that, I think the technology and product offerings are good, and compliance (thus far) has been reasonable (unless you're trying to replace a VA...the compliance form to get that done is pretty nasty).
Other than that and a few glitches that are to be expected, my experience has been pretty good and I'm well satisfied.  I am at about 22 million in assets now and as of today, have only 11 clients that I have any level of interest in that have not made the move with me.  If they come, fine, but I'm putting my efforts into taking care of the clients that followed and several good referral prospects.  I think purging my book of a lot of dead wood was a good move and after hearing some successful producers recommend it, I'm in the process of implementing a substantial (for me at least) account minimum...probably $250,000.
That's all I have at the moment...perhaps someone in the due diligence process and/or someone at RJ can complete the picture for you.

maybeeeeeeee's picture
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Indyone wrote:
Update for the curious...halfway through my third month...assets at about $16 million...last four weeks commissions...gross about $20K...net of $17K...$13K after expenses.  That's roughly 65% of gross.
Grossing less than I was at the bank, but making more...and it's early in this game.  Best yet, I actually look forward to going to work in the morning...can't put a price on that...

Very good info.  Please keep us posted.
can you give a general idea of your biggest expenses?  are you sharing with anyone?  thanks.

Indyone's picture
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Overall, my expenses are running about $5,000/month.  This is with a shared office with an unrelated professional, and shared assistant.  My half of the assistant runs $1,500-$1,800/month and is my largest expense. Rent/utilities/phone runs about $1,300/month, advertising, about $500.  I keep the overhead low by design.  As production ramps up, that will probably change, but for now, it works well for me.

bankfa10's picture
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Joined: 2006-02-21

Indy,

Did you consider going into the type of office in which you would be paid a flat 60% with no overhead. I am looking at LPL and think thats the route I will go. Im at 275-300k at BAC and do not want the risk and expenses of starting my own office. The broker at that office says I will have my own number and the clients are mine he just takes 40%. What are your thoughts

Indyone's picture
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bankfa10 wrote:Indy, Did you consider going into the type of office in which you would be paid a flat 60% with no overhead. I am looking at LPL and think thats the route I will go. Im at 275-300k at BAC and do not want the risk and expenses of starting my own office. The broker at that office says I will have my own number and the clients are mine he just takes 40%. What are your thoughts
I didn't consider that, mostly because it wasn't an option locally.  I'm running right at 70% of my gross thus far this year, so a no-risk set-up at 60% sounds reasonable to me, particularly when you are just starting out as an indy.  The devil is in the details...make sure that the termination clause in your agreement is user-friendly if you decide that things aren't working out like you'd hoped.  You might also run a worst-case scenario that your production is half of what it is today and consider that you may go awhile without any paycheck (I went about six weeks), particularly if you leave in the summer (which is what I recommend).  Build up your cash reserves, and learn to live a little leaner for a few months and you should be fine.
Assuming you have a good rapport with the indy advisor, that sounds like a set-up that you will be much happier with, but as you ramp up your production, that 40% may start to look pretty expensive...

Dudley Dawson's picture
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Joined: 2006-04-27

Indyone,  Any updates to share about how it's going at LPL?

Indyone's picture
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OK, here's your update...at 11 months in, things are going about as well as I could expect.  I have just under $25 million in assets under management, and am on pace to get to $30 million by my year end 2006 goal, and probably before then.  I am on pace to do about $180-$200K gross this year, and my average net through the first six months after everything except income taxes, is right at $10K/month.  I'm still moving accounts on a regular basis, which is a bit of a surprise, as I expected the asset migration to be pretty much done by now.  For a variety of reasons, I took this opportunity to purge my book of less desireable clients and ultimately targeted just over half of my book, and the last time I looked, there wasn't much left that I was even interested in moving, so the expiration of my non-solicit (assuming that it is enforceable) next month looks to be a non-event.  There are perhaps 2-3 accounts that I'll make contact with in an effort to move them.  Otherwise, I find my time much more productively spent working new business prospects.
Overall, my transition to indy included some long hours last summer, but thus far, it's been a very satisfying move and I only see it getting better going forward.  For anyone considering a transition to independence, read "Starting Your Own Practice" by Robert Fragasso, and make your move in the summer...it's difficult enough when things are supposedly slow...I can only imagine what a nightmare my move would have been if I'd done it in January or February...yuck.

maybeeeeeeee's picture
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Joined: 2005-02-24

Indyone--great post.
Expiration of which non solicit?  The one at your old firm?  Can you tell a bit more about it?  Was there any "training costs" they came after you for?
Congratulations on a job well done.  Best wishes for continued success.  AND may the account fairy bring you a HUGE account this month.

Indyone's picture
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Our non-solicit didn't have any provision for training costs, but if it had, I think being there for more than five years would have covered that.  Yes, the non-solicit was for my old firm, and even included a non-compete for my territory.  From what my legal advisor told me, it would have proven to be a bigger problem had it been signed prior to my employment, or signed after my employment began, but with an inducement (such as stock options).  Since neither happened, it was his opinion that it wasn'y any good.  Even so, he advised me to at least honor the non-solicit part of the agreement just to be on the safe side.  I did newspaper ads and radio and signed up clients as they came and it worked out just fine.  Most of what I wanted found me without being aggressive about their business.

Rugby's picture
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Joined: 2006-06-06

Indyone-
I know you are fairly new with LPL..do you have plans to expand your business?  Does LPL encourage, pressure or incentive you to add new RRs under your OSJ (w/ or w/o book)?
Just curious, as I'm looking at approaching an Indy/LPL to start off with.
Thanks,
Rugby
 

Indyone's picture
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Joined: 2005-05-31

The only encouragement/pressure, etc. that I'm aware of is the $125,000 minimum annual production for maintaining your own OSJ office.  I think there is a small payout bonus over the standard 90% once some higher production hurdles are hit.
As far as staffing goes, as near as I can tell, that is left up to the OSJ, providing that there are no compliance problems.

Indyone's picture
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Joined: 2005-05-31

Just back from LPL's national conference and aside from some serious jet lag today, I'm feeling pretty good about things.  For a newbie to LPL, the national sales conference can be a bit intimidating at first, but by the end, I was pretty blown away by the quality of the conference.  I spoke with another guy I'd previously met during due diligence and he was similarly blown away.  He'd been with Raymond James and indicated that their national conference was nice, but nothing like he was seeing in San Diego.  Aside from the huge number of vendors, I had some good tech sessions (although it was 70% review of what I'd managed to figure out for myself during the year), and targeted some product sessions to replace some of the tech sessions when I realized that they were a bit basic if you were already familiar with the system.  For things I hadn't used (securities tracker), I found them to be beneficial.
LPL did an excellent job of helping us run our business while we were at the conference.  Just about anywhere I looked, there were internet kiosks that allowed one to easily access LPL email and the LPL system.  I placed trades between classes and it worked beautifully.
Announced enhancements such as increased payouts (which don't affect me all that much at my current production level), and the potential elimination of the branch trade report for direct business were welcome news.  I found the increased payouts refreshing at a time when I'm hearing about competitors cutting payouts on VA's, etc.
The entertainment and food was excellent.  In between Kool & the Gang on Monday night and Kenny Loggins on Wednesday, several of us took in the Padres-Astros game on Tuesday night and had an excellent time.  Wednesday afternoon was spent on the decommissioned Midway aircraft carrier...complete with F-14, F/A-18, and many other planes and helicopters...very cool...I recommend seeing it if you're ever in the SD area.
All in all, a high quality experience that left me feeling pretty pumped up about things (jet lag notwithstanding).  LPL has a good understanding fo how to balance education and entertainment, and approximately one year in, I still feel like they are a great place to affiliate with.

Registered Rep's picture
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Joined: 2006-07-18

I'm not an Indy but after reading your post, I would like to attend the next LPL conference. Sounds like allot of fun & education. Is it always held on the west coast near the corp. HQ or do they rotate it around different regions?

Indyone's picture
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From what I understand, the main sales conference that I attended (for all LPL reps) is always close to headquarters in San Diego.  They have a separate trip in the spring for higher production levels, and that is rotated around to various islands, etc.

troll's picture
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Registered Rep wrote:I'm not an Indy but after reading your post, I would like to attend the next LPL conference. Sounds like allot of fun & education. Is it always held on the west coast near the corp. HQ or do they rotate it around different regions?First you have to join LPL!! 
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Registered Rep's picture
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It's on my radar Joe but my b/d hasn't P.M.O enough yet.

troll's picture
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Registered Rep wrote:It's on my radar Joe but my b/d hasn't P.M.O enough yet.lol...give 'em time!  
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Boomer's picture
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Joined: 2005-04-01

Just read this thread straight through. I have to say how much I respect
those of you who have buckled down and moved out to start your own
business. I really respect that.

What I am looking for is a little different advice. I am about to start my
career in a wirehouse. I am young <25, but what would you say to me if
my "final goal" is to leave the wirehouse (after establishing a quality book)
to go indy. I know I would love running my own shop one day. I also know
that I am thinking way ahead of myself, but you have to have a game
plan. Right?

Advice I am looking for after reading this thread: (plus you general
thoughts)

-what do I do if I am asked to sign a non-compete or any other document
-how would you go about your wirehouse career if you knew you wanted
to eventually leave to run your own shop?
-any other thoughts on my situation in general

NASD Newbie's picture
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Joined: 2005-08-01

Boomer wrote:
Just read this thread straight through. I have to say how much I respect those of you who have buckled down and moved out to start your own business. I really respect that.

They were not making a living where they were, so they toss all the "unnecessary" things overboard in a last gasp effort to stay afloat.
There is very little to "respect" about those who become independent brokers.
It's like a lawyer in a law firm who is not offered a partnership--he's going nowhere fast so he leaves and forms his own firm.
You're not tuned into reality if you think he did that because he was doing so well at the larger firm.
 
 
Boomer wrote:
What I am looking for is a little different advice. I am about to start my career in a wirehouse. I am young <25, but what would you say to me if my "final goal" is to leave the wirehouse (after establishing a quality book) to go indy. I know I would love running my own shop one day. I also know that I am thinking way ahead of myself, but you have to have a game plan. Right?

What about a job that you have not even started do you find to be so unattractive that you want to leave before you even walk in?
What you should do is not even start--you're too young to have much of a chance of building a book worth moving.
 
boomer wrote:Advice I am looking for after reading this thread: (plus you general thoughts)-what do I do if I am asked to sign a non-compete or any other document-how would you go about your wirehouse career if you knew you wanted to eventually leave to run your own shop?-any other thoughts on my situation in general
Sign the non-compete agreement if you want the job
One should not start a career planning to fail and leave.  If that's your mindset don't even start.

Philo Kvetch's picture
Offline
Joined: 2005-05-17

"They were not making a living where they were, so they toss all the "unnecessary" things overboard in a last gasp effort to stay afloat.
There is very little to "respect" about those who become independent brokers.
It's like a lawyer in a law firm who is not offered a partnership--he's going nowhere fast so he leaves and forms his own firm.
You're not tuned into reality if you think he did that because he was doing so well at the larger firm."
-----NASD Newbie
 
How do you think Morgan Stanley got started?  AG Edwards?  Merrill?  Edward Jones?  Were they all failures at their former firms?
You're still a moron.

Indyone's picture
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Joined: 2005-05-31

Boomer, I was doing just fine financially where I was before I made the decision to open an independent office.  In fact, I was #2 overall in our group of 10 and #1 fee-based, so I was hardly on the bottom in production.  Moreover, since I've left, I've taken almost 85% of what I targeted without violating my non-solicitation clause.  Now that I'm a year out and the non-compete agreement has expired, I'm still not chasing my old clients, and despite that, they are still transferring over.
Nasty Newbie knows a lot about the industry, but with all due respect, he knows nothing very little about being independent other than what he reads here, and the propaganda he was fed by his former employer.  I met many million dollar producers at the LPL national sales conference earlier this month, so I know for a fact that going indy is far from the last gasp effort to stay in this business that Nasty paints it as.  I'm sure there are some that go indy because they couln't cut the production requirements, but that's far from the truth for many of us.  I've enumerated many times on these forums why I went independent and failure with my former employer was never in the equation.  More money wasn't a factor either, but my disgust with my former employer's greed and the obvious jealousy of senior management sure was.  Nasty often refers to the "siren song" of increased payout at independent B/Ds as the primary motivator, but again, he speaks from no personal knowledge on this matter, and that was not even in my top three.  For me, it was, and always will be about freedom.  Freedom from employer politics.  Freedom to work flexible hours.  Freedom from stupid, meaningless pep sessions.  Freedom to use the investment alternatives you feel are best for your clients.  Sure, there's still compliance, and client demands will always dictate some of what you do, but as I've said before, I feel like I've been paroled.
You've asked elsewhere about joining a young, successful independent producer and if the chemistry is good, that may not be a bad idea.  You should have an agreement in place to protect each of you in the event that it becomes necessary to separate later.  If your eventual goal in this industry is independence, working a junior position in an indepent office sounds like a pretty natural place to be.

NASD Newbie's picture
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Joined: 2005-08-01

indyone wrote:
More money wasn't a factor either, but my disgust with my former employer's greed and the obvious jealousy of senior management sure was.

What in the world does that mean?  What is "greed?"  Define it.
As for senior managment's obvious jealousy--what in the world are you talking about?

NASD Newbie's picture
Offline
Joined: 2005-08-01

indyone wrote:
For me, it was, and always will be about freedom.  Freedom from employer politics.  Freedom to work flexible hours.  Freedom from stupid, meaningless pep sessions.  Freedom to use the investment alternatives you feel are best for your clients.

If you met "a lot of million dollar producers in San Diego" why is it that the top 20 LPL producers don't have an average production exceeding, or even approaching, a million?
Have you ever worked for a wirehouse?  If I understand what you've said you are a Jonesie who went to LPL--you didn't have what it takes to get on with Merrill or one of their peers and as a result you have virtually no knowledge of the world from which I come.
Perhaps it would do you well to listen to me.
Starting with this truth.  Big hitters at the wirehouses do not go Independent, because it doesn't make good sense.
Those who were about to be fired often go independent, because they are making their last stand.  They're on the way out of the industry but 90% plus sounds very attractive--who needs a lot of support anyway--the business is actually very very easy.

Indyone's picture
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Joined: 2005-05-31

NASD Newbie wrote:indyone wrote:More money wasn't a factor either, but my disgust with my former employer's greed and the obvious jealousy of senior management sure was.What in the world does that mean?  What is "greed?"  Define it.
As for senior managment's obvious jealousy--what in the world are you talking about?
Greed is reducing the payout grid three years running.
Jealousy is being told that they couldn't give us stock options because..."that's the only thing the bankers have that you don't."

NASD Newbie's picture
Offline
Joined: 2005-08-01

Indyone wrote:NASD Newbie wrote:indyone wrote:More money wasn't a factor either, but my disgust with my former employer's greed and the obvious jealousy of senior management sure was.What in the world does that mean?  What is "greed?"  Define it.
As for senior managment's obvious jealousy--what in the world are you talking about?
Greed is reducing the payout grid three years running.
Jealousy is being told that they couldn't give us stock options because..."that's the only thing the bankers have that you don't."

If you have to take a small hit on the grid in order for your firm to remain profitable is that too much to ask?  Could you not make up for it by increasing your production?
If you really were told that options were given to bankers but not to producers to separate them from the producers--which I doubt you were told--it would make you the jealous one, not the management.
It does not follow that management is jealous of the producers so they withhold from the producers.
I have never felt jealous regarding a producer--in fact I feel sorry for them, doing entry level work for an entire lifetime cannot make the image in the mirror very impressive.

Indyone's picture
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Joined: 2005-05-31

NASD Newbie wrote:indyone wrote:For me, it was, and always will be about freedom.  Freedom from employer politics.  Freedom to work flexible hours.  Freedom from stupid, meaningless pep sessions.  Freedom to use the investment alternatives you feel are best for your clients.
If you met "a lot of million dollar producers in San Diego" why is it that the top 20 LPL producers don't have an average production exceeding, or even approaching, a million?  Uh, I'm calling you on that one.  Post your proof.  I've spoken with one at about 6 million and one at about 3 mil.  That's just two and we're already at an aggregate of 9 mil.  Advisors need $1.1 million in gross production just to attend the Master's Conference.  I don't know where you've gotten your information. but you're way off here...all I can assume is that your numbers are really old or you're just making things up to get me excited.
Have you ever worked for a wirehouse?  If I understand what you've said you are a Jonesie who went to LPL--you didn't have what it takes to get on with Merrill or one of their peers and as a result you have virtually no knowledge of the world from which I come.  I'm no former jonsie...came out of the bank channel.  I'll freely admit that I don't believe I would flourish in a wirehouse channel, probably more for lack of compatibility rather than lack of talent.  It's arrogant for you to assume that I can't be successful in this business since the wirehouse environment is not well suited for me.  Yes, my knowledge of your world is limited to outside observation...no different than your knowledge of life as an independent.
Perhaps it would do you well to listen to me.  When you speak from experience, I will.
Starting with this truth.  Big hitters at the wirehouses do not go Independent, because it doesn't make good sense.  That's your opinion and it's far from universal.
Those who were about to be fired often go independent, because they are making their last stand.  They're on the way out of the industry but 90% plus sounds very attractive--who needs a lot of support anyway--the business is actually very very easy.
Nasty, I don't want to litter this thread with a food fight, so I'll not respond anymore here.  If you want to ruin another thread with this debate, fine, but I won't discuss it any further here.

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