Commonwealth vs. LPL
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[quote=joedabrkr] [quote=illinoisrep]Indyone,You mentioned small accounts get nickel and dimed at LPL. Çan you be more specific on the size of account where direct accounts make sense? [/quote]Indy I would also like to see you elaborate on this a bit. I have opened every account w/LPL except when it is not possible(such as 529’s). I did this largely for my convenience-i.e ease of administration-and also quite likely because of my wirehouse background.Tell us more…[/quote] I got a notification in early June regarding a $30 dormant charge for accounts that didn’t generate a minimum amount of commissions. I don’t have it in front of me, but it seems that if you have at least a couple hundred dollars of commissions or trails per year, you should be OK. Most accounts of at least 80-100K would fit this criteria. I do some larger accounts to avoid ticket and confirmation charges and keep my payout high. As I said before, at least I have the freedom to work around the charges.
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When all said & done you will choose the org that fits your business model most comfortably. Like yourself I did careful due diligence & only recently made the decision to shift my practice to RJFS. I will be making that shift over the coming weeks. When I look back on my experience the similarities between LPL & Ray Jay were incredible. Even their top people provide only praise to the other, which is quite remarkable. Again, do your homework but once you remove the emotion & weigh out the pro's & cons between the two, you will find they are both worthy but one will stand out as being the better fit for your clients and for your career.
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I agree both firms are very similar. Do you mind sharing on why you're transfering your practice to RJFS? Are you moving it from LPL? Thanks!
Same situation as the original post LPL vs CW, lots of really good points here. I found the same things about CW.... great people, great service and they come across a company you want to do business with. I have not gone to LPL to "kick the tires" but I think I may. I thought I had made up my mind but I want to feel I have looked at everything.
Size, service ,and the IPO are the things I keep hearing about LPL that concerns me. Their tech seems great but CW's tech is really good.
Noticed there is never any CW reps on here, don't know if that is a good thing
Just back from the visit to LPL. Let me just start out by saying that the pimped out SUV was sweet! Ron (driver) is a great guy. All in all, I must say that we were very impressed with our trip. I was hoping that I would not be dissapointed w/ the visit since I was leaning towards LPL and I was not dissapointed. Here's my comments on a few of the areas we've been comparing across the 3 firms.
Technology - It was obvious to us that the desktop technology at LPL is overall superiror to RJFS & CW. It seems very intuitive and it is 100% web based (unlike RJFS), meaning you can login from any computer via the web and conduct all of your business remotely. RJFS's system requires a download to your PC so you would have to be traveling w/ your laptop to be able to login and use the system. From what I've heard and seen, it seems like they are constantly improving their technology. We were told of some new things coming down the pipe that will make the system even better. My take is that their technology is designed for self-sufficiency & efficiency. This is probably why LPL reps seem to be more productive and spend more time in revenue generating activities according to the Moss Adam report. Is it perfect? No, but then again who is? Products & Services - They certainly have a wide range of products & services. Certainly more than my current firm. Everything from DFA funds to Trust services is covered. They will be announcing a banking/lending service in their National Conference so again, they seem to be adding more and more to this list. The only service they don't provide as far as I can think of is Investment Banking which is fine for me. Advisory Servcies - The majority of my investment business is advisory and they have a good offering in this area but not great. Their asset allocation models are lacking in sophistication but they just brought in a VP of advisory services over from UBS and the guy gets it so from what they were able to share w/ me in terms of future plans this area will continue to evolove and expand. Some quick things I can mention is a portfolio rebalancing tool tied to PRT that will make SAM & SAMII a lot more efficient to use. They will also be rolling out an institutional global portfolio managemenent & rebalancing tool in the not to distance future. If you don't manage your own portfolios they plan to expand the asset classes & investment products you can use w/i PWP. This will include ETFs, alternative investments and even rep managed sleeves within the product. Finally they seem to have a much more open architecture than RJFS & CW in terms of being able to use outside FBAM managers such as Symmetry Partners, SEI, Assetmark, etc... RJFS does not allow this giving you the feeling that they are a bit more proprietary than a truly open platform. If you do planning & consulting they have a great program for charging for financial planning & those of us who have advanced certfications can even do hourly consulting w/o having to give out a deliverable. This is huge for me because I plan to use it. Corporate Retirement Plans - They are getting ready to rollout some cutting edge products/services in the area of 401K's plans. Some of these services will include being able to take on fiduciary responsobility if you are qualified to do so and fully comply w/ the PPA. Again, some nice sounding things coming down the road in this space including better marketing and education in this space. Financial Planning & HNW Services - I had a concern around this area but after my visit my concerns are gone. I met w/ a couple of their CFP's from the financial planning group and was impressed w/ their level of expertise around estate planning and other advanced issues. As someone dealing w/ more sophisticated clients and having resources to call at my current firm for help w/ case design I was concerned abut the support in this area but not any more. I was also told that LPL will be launching a PCS (private client services) group sometime next year. This group will be comprised of CPA's, JD's, and will be more availalbe in the field to help w/ client and prospect situations. The suite of financial planning packages advisors can use is very extensive ( alot more so than CW & RJFS). The eMoney tool is phenomenal if you do that type of work and the pricing is much better than you would find on the street so this is a HUGE plus for us. Marketing - This was a HUGE dissapointment. This is the one are were LPL is just bad at. Their materials & department is simply not up to snuff if you target the HNW client. My understanding is that they hired a new EVP of Marketing and that they are aware of the issue and will be working on fixing this area. They do have some relationships w/ external providers for those of us who want a more upscale look and feel to our brochures, websites and newsletters so not something that can't be worked around. The marketing material for their advisory programs is OK though so that's a relief. Another nice thing about LPL is that they seem to be less interested in branding LPL as compared to RJFS. I was told that they will be working on getting the LPL name out there some more BUT it will still be done in a way that highlights the independent advsior vs. the BD like they do now. Practice Development - Nothing entirely unique here but I did get the feeling that this department can provide value to reps in the areas of consulting, coaching, best practices around how to grow & run our practices. The reports they can run for us in terms of benchmarking are really useful though. They are working on expanding this group and it all sounds good. One key thing coming out soon is that they are finally rolling out a Healtcare solution for reps based on demand from the field. Again, an example of how they try to find ways to help their reps. Payout - As far as I can see (and I've done a fair amount of comparison), LPL has a better payout structure than CW & RJFS. I've heard people talk about nickling & diming reps but it seems to me that they are more of an "a la carte" model where they startout w/ a higher payout and let the reps CHOOSE what they want to use and pay for based on their business model. That sounds fine to me but even after choosing all the options available their figures look better by a nice margin. There are some changes coming soon that will make this even better. Compliance - Nothing earth shattering here. They seem workable and a heck of a lot better than my current environment and the wirehouses. Maybe not as flexible or easy to work with when compared to CW but easy enough for us.So that's my take at this point. At this point I think we're certainly leaning w/ towards LPL. There are some follow up questions/issues that we're working on with all 3 firms but unless we find something big we're probably going w/ LPL. Now it's a matter of us negotiating for more benefits with our transition package and visiting their national conference in a couple of weeks and we may have a winner. Tough call though. I can easily see how someone would go through this process and pick RJFS or CW. It all boils down to what's important to the team. If you are clear on this I think you should be able to figure out what BD brings more to the table for you.
Now our focus will have to shift to actually making this move happen. This will be a lot of work but we're excited to get it over with.
indywannab, these are fine and valuable posts.
I complement you on your thoroughness and analytical style. No matter where you eventually land, I think that you will be a good asset to the firm and do a fine job for your clients. It's refreshing to read sensible and informative postings.
[quote=Dust Bunny]
indywannab, these are fine and valuable posts.
I complement you on your thoroughness and analytical style. No matter where you eventually land, I think that you will be a good asset to the firm and do a fine job for your clients. It's refreshing to read sensible and informative postings.
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Appreciate the feedback. I am a pretty analytical kind of guy and wanted to take a non-emotional approach to this process so taking notes and writting the feedback on this thread has helped a lot.
[quote=joedabrkr]I echo DB's comments.
LPL is constantly upgrading their technology. There was a recent glitch when they moved a massive server farm, but they were quick to resolve it, and were very good about keeping reps informed as to the status of problems.
There are more product choices and technology options than one could ever use.....plenty of avenues one can take in crafting one's business.
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Sounds like you're w/ LPL. I think you will like some of the news you will hear at the National Conference regarding new things coming down the road.
Great posts.....actually helping me tremendously with my own choice (LPL & CW). LPL trip is on the books, CW seems like such a great company but I am keeping an open mind.
I am mostly advisory so that is the most important platform to me, but you have certainly given me some great insight and will help in the focus off my questions.
Did LPL mention training staff? How do the current LPL reps staff feel about them? My assistant is very fustrated where I am now, so anything would be an improvement
LPL has some good training online under fast forward. Your assistant can take these free of charge anytime she wants. I took a few in the days preceding my jump on topics, such as opening new accounts and direct business and found them very helpful. If she prefers live, I noticed several assistants at the last regional meeting I attended. Of course, my assistant has received good help over the phone also…that help you?
[quote=unclesam]
Great posts.....actually helping me tremendously with my own choice (LPL & CW). LPL trip is on the books, CW seems like such a great company but I am keeping an open mind.
I am mostly advisory so that is the most important platform to me, but you have certainly given me some great insight and will help in the focus off my questions.
Did LPL mention training staff? How do the current LPL reps staff feel about them? My assistant is very fustrated where I am now, so anything would be an improvement
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Unclesam,
I know what you mean about liking CW. I was completely leaning towards them in the beginning but after making all the trips I realized that I was willing to give up some of that "high touch" approach to gain more depth & breadth of services and resources. 80% of my business is advisory so that was a HUGE criteria for me and CW is better than RJFS in that aspect but due to their smaller figure in AUM they simply can't get access to as many managers and programs as larger firms. In the area of alternative investments they are severely lacking although they are hoping to improve this but it all comes down to how much $ a BD can commit to those firms. I also started finding some limitations w/ their clearing house (NFS). Some things that NFS can't provide (and have no plans to provide in the near future) that are important to some of my key clients are: download of 1099 data directly to tax planning software for year end tax preparation and allowing clients the option to go paperless with statements, confirms, and proxy & prospectus info. I was told by CW that between them, NFS and third parties (mutual fund companies, etc...) clients get A LOT of mail. Believe me, I went there hoping that they would have everything that I need but it just wasn't the case. I'm sure they woudl do a great job if you choose them though. Just make sure you figure out exactly what's important to you from a BD. This will have much more to do w/ your future plans and practice focus. Once you know that, you'll be able to figure out the right BD for you.
Indywanab,
Those are points well taken. At the end of the day I am looking for someone to help me execute my business ( not a new best friend). I do want to enjoy the relationship with the B/D but have to keep objective. I was (and still am) leaning toward CW but I want to investigate all of the options out there. LPL seems like a quality frim from top to bottom.
I have heard that people have not been happy with CW statements, a bit confusing.
I will be making the LPL trip soon, looking foward to seeing what they have to offer. Although it sounds like a broken record, I would be lying if I said that the IPO thing does not concern me. I realize the voting rights structure makes sure a lot of powers stay with the employees but it's hard to believe that the company will not change by going public. The growing pains also are a concern but nothing that has not been talked about ad nausem.
Thanks again for all the input , it really has been helpful!
Mainly that the bottom line becomes keeping shareholders happy which in some cases may contradict keeping reps happy. Again, I have heard the reps are what make us who we are speeches from firms that have gone public.
In some cases when going public or takeovers have happpened with banks/Ins companies the 1st thing that they look at is "how much we are paying reps" ( to be fair that is what a few friends have experienced...First Union/Wach, Keybank). This time may be different, but I have thought about it. Don't know if shareholders will want to pay for Bush 41 and the Eagles at the national conference...lol.
I think they are a great firm, my only concern is that some sort of fundamental shift happens when you are owned by shareholders that wan their stock price higher. They may wish for short term results which could be at odds with tech investment,support or other non immediate impact expeditures. All this is very far from a deal breaker, but I would not say that it would not factor into the equation for me.
[quote=unclesam]Mainly that the bottom line becomes keeping shareholders happy which in some cases may contradict keeping reps happy. Again, I have heard the reps are what make us who we are speeches from firms that have gone public.
In some cases when going public or takeovers have happpened with banks/Ins companies the 1st thing that they look at is "how much we are paying reps" ( to be fair that is what a few friends have experienced...First Union/Wach, Keybank). This time may be different, but I have thought about it. Don't know if shareholders will want to pay for Bush 41 and the Eagles at the national conference...lol.
I think they are a great firm, my only concern is that some sort of fundamental shift happens when you are owned by shareholders that wan their stock price higher. They may wish for short term results which could be at odds with tech investment,support or other non immediate impact expeditures. All this is very far from a deal breaker, but I would not say that it would not factor into the equation for me.[/quote]
Frankly, you SHOULD factor it into the equation when you are weighing where to go. Just recognize that almost any firm you look at has the same potential problem. They may say they have no intention of going public, but all it takes is waving a fat offer under the right shareholder noses, and you have a potential takeover.
That being said, I think much the same as you do on the potential changes, but since I'm already here, I won't worry about it until there is a reason to worry. Frankly, some of the crap I've gotten from compliance is more of an irritant than the company trying to please some shareholders. Don't take it as a strike against LPL...every B/D I've dealt with has at one time or another given me compliance pains over seemingly trivial stuff that has me cursing the bad apples that make things difficult for the vast majority of us honest folk. Enough of that rant...just understand that you're going to run into both the business prevention unit and shareholders at some point in time almost anywhere you go, so on that front, you're almost choosing between the lesser of two evils when you make a decision based on that factor.
Oh, and you forgot one...Chicago will be at the national conference also...
Very true, and for someone already on the inside they would leave if things started to change. But for someone on the outside looking in it may just cause a small hesitation ( again not huge, just something I have considered).
What do you consider their greatest strength? weakness?
How long have you been with LPL? I assume most here are happy with their choice. I had read some prior posts about the OMP platform, do you use it?