What is needed to become an independent rep?
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What would you say your numbers (book and commissions) should look like and time frame? How much savings needed as a back-up?
Not sure of the timing with banks and brokerages in the news so much. Clients may be jittery about change right now. Thanks for you input!The most common numbers I hear are 30 million AUM, 225K production, with at least five years in the business.
As far as an emergency fund goes, I’d want at least 6 months worth of living expenses in a cash (not stock) account.
Keep in mind…these are only best guess minimums. I left with more experience, production, AUM, and reserves because I was leaving a bank program with a higher percentage of sticky assets and knew I needed a bigger margin. Certainly people have left with less, but I wouldn’t want to personally.
My transition went pretty well and I love being an independent.
I hear a lot about the 90% payouts. Can anyone give an idea how much thru LPL will an advisor take after ticket charges, misc expenses, etc? Excluding rent, utils, salaries. Averaging closer to 80%? Are there a lot of hidden expenses?
I really appreciate this discussion and your professionalism, thank you!My net after everything is about 68%. That includes assistant, rent, advertising, you name it. My 91% through LPL ends up 86-87% after ticket charges, etc. Somewhere on here, I detailed all of this, so make use of the search button and you should find a wealth of information on indy net after expenses. I hear anything from 60-80% from the indies I’ve spoken with, although for the mega practices, it’s probably even more.
Actually, I know a couple of megas in my area, and their profit% is actually a little lower. The reason is that they have alot more built-in overhead. Larger office space (they both own buildings), more assistants, advisors, staff, etc. (I have friends that work as staff at both, which is how I know this). I think a lot of it also depends on what type of business you are doing - this may determine level of ticket charges, overhead, etc. I have two friends that are solos. One of them has a tiny little single office in a shared complex, and no assistant. His take home is in the mid/high 70% range I think. I have another friend, about the same production, but has two assistants and a larger, dedicated office space. His take home is around 50%. Neither are super producers (maybe in the 300K range?). They just have different focuses, and manage their businesses very differently.My net after everything is about 68%. That includes assistant, rent, advertising, you name it. My 91% through LPL ends up 86-87% after ticket charges, etc. Somewhere on here, I detailed all of this, so make use of the search button and you should find a wealth of information on indy net after expenses. I hear anything from 60-80% from the indies I’ve spoken with, although for the mega practices, it’s probably even more.
50% is low for an indy, but if a 300K producer thinks he needs two assistants, he obviously values his leisure more than his net. I’m at that level with a single part-time assistant. One thing for sure, he ought to be able to provide outstanding service.
Search for any and all Indyone’s posts. He could (and almost has via this forum) write a book about transfering indy- especially if you are analytical and are curious about the nuts and bolts.
That’s a fair assessment, Chaz. I sometimes wonder why I’m so motivated to do so…averaging 2-3 posts a day for almost three years now. I’ve come to the conclusion that my motivations are two-fold. I really do enjoy the virtual water cooler. If there’s one thing I miss from my W-2 life, it’s the camraderie. This acts as a decent substitute. I also enjoy teaching…both clients and other reps considering a move to independence. I found a wealth of information here, which I found very helpful, and this is a way I try to give back. It’s kind of a cross between community service and a hobby, which can quickly become more time-consuming than it should. There may soon come the day when I no longer have the time to devote to this hobby, but for now, I find it an enjoyable diversion.
I can appreciate your thoughts Indy. I don’t post very often, just learning the ropes and reading as many of the posts as I can. I hope you find it enjoyable for a long time.
Keep up the post IndyOne. I very much enjoy your insights into the indy world!!!
Thanks folks, I will do the search and enjoy. Great area by the way - this indy RIA section! J$