Commonwealth vs. LPL
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Indyone,
Good point, it is inevitable that growth and success is going to have people looking to cash in. I am not against it, just have read a few posts about LPL changing and concern at the growth rate.
We only want to do this once and probably looking for more answers than it is possible to get. Very educational posts (for me) and extremely helpful.
It's been a long road but we have a winner! After meeting with and researching ML, UBS, SB, BS (Bear Stearns), RJFS, LPL, and CW, we have opted to go with LPL. I must say though, turning down the large 6 figures checks from the wirehouses was TOUGH! I kept telling myself that I would make that up and then some in the long run. Belive it or not, I came to the realization that I have outgrown the wirehouses in terms of our wealth management focus and future direction. In order for me to provide the types of services I want to provide I need the freedom & flexibility afforded to me by being an independent firm.
So, I head down to LPL's National Conference next week for a taste of what's to come and after I return we'll start the real work of transitioning. Our target date is late December. Seems like a long way away but I'm sure it will fly by because there is lots to do. I've already picked a firm name & registered the domain name and incorporated so some of it is in progress. Sorry, can't put the name up here due to privacy issues for now. I'm actually launching a team practice so I have to deal w/ office space, buildouts, furniture, employee benefits, marketing plan, etc... Now that the decision is made we just can't wait to execute and get going but don't want to rush things so we'll see how it goes.
I know setting up an independent private practice is not for everyone but it sure is right for us given everything we've learned over the last 6 weeks.
I'll try to refresh this thread as we progress for those of you who are going through the same process I am and to learn from those of you who've been through this before. Any tips/advice from those of you who've made this move would sure be welcome!
The architecture of setting up a firm is not too fun ( in my state anyway) but I get the feeling you will get through it just fine. Congrats on making the decision
Wanab...I think you made a fine decision, although I'm not an unprejudiced party here. Have a blast at the National in Boston and keep us posted on your progress.
...and congratulations...
[quote=Indyone]
Wanab...I think you made a fine decision, although I'm not an unprejudiced party here. Have a blast at the National in Boston and keep us posted on your progress.
...and congratulations...
[/quote]
Thanks Indyone! Looking forward to the conference.
We are SO EXCITED about this move. I think we just found our office space! 1,500 sqft of a very nice newer, proffesional office building in a affluent area in town. We'll actually get signage for our firm right in front of the building! The buildout will be for 4 private offices, 1 conference room & room for operations manager/client service associate. We have a name & hired a marketing firm that will work on logo, branding, website, brochures, etc... so we're on our way! Looks like I'll be spending about $12K in furniture & another $5K in equipment. This reminds me of the last business I started & ran. Feels great!
Got another call from the ML complex manager today. He’s trying to talk me out of going out on my own. Telling me how going out on my own is such a big of a mistake for a rising star. Trying to make me think like I’ll be better off w/ them. What a joke!!
[quote=joedabrkr] [quote=indywanab]Got another call from the ML complex manager today. He's trying to talk me out of going out on my own. Telling me how going out on my own is such a big of a mistake for a rising star. Trying to make me think like I'll be better off w/ them. What a joke!![/quote]
Honestly it's getting close to the point where they're starting to grasp at straws anymore. I would love to hear how Devil's Advocate/Put Trader responds to this....
[/quote]
I can only speak for me, but I am sure that 999 out of every 1,000 guys and gals at a place like LPL went there because they were mediocre producers in their previous employment and are grasping at the higher payout in hopes that they might be able to survive.
I am not aware of a single resignation that did not benefit the firm the mediocre producer left. Getting rid of dead wood by any means is beneficial--culling the herd is always good.
It is not happenstance that the annual lists of big hitters are almost universally from the wirehouses.
Major investors don't do business with one man shops or some kid sitting at a little desk in the corner of a bank lobby.
[quote=Devil’sAdvocate]
I can only speak for me, but I am sure that 999 out of every 1,000 guys and gals at a place like LPL went there because they were mediocre producers in their previous employment and are grasping at the higher payout in hopes that they might be able to survive.
I am not aware of a single resignation that did not benefit the firm the mediocre producer left. Getting rid of dead wood by any means is beneficial--culling the herd is always good.
It is not happenstance that the annual lists of big hitters are almost universally from the wirehouses.
Major investors don't do business with one man shops or some kid sitting at a little desk in the corner of a bank lobby.
[/quote]
999 out of every 1,000, really? I'm sure you've done some intense & thorough statistical analysis to come up w/ your results. Although I wonder why all the industry trade mags keep writting about the steady flow of "heavy hitters" leaving the wirehouses to go independent? And let's not forget about the trend of HNW & institutional investors seeking out and working with independent advisors/RIA's? Ahh, I'm sure the mag. research staff hasn't done nearly as much research as you have so they most have it all wrong. But then again, why did Wachovia feel the need to launch an independent channel if they were so much better off getting rid of those mediocre producers that no major investor wants to work with? Boy, I'm sure glad you spoke up and enlightened me on this statistical certainty. I think I'll call ML, SB & UBS first thing tomorrow AM to let them know I've made a terrible mistake in going indy! Thanks man!
[quote=joedabrkr] [quote=indywanab]Got another call from the ML complex manager today. He's trying to talk me out of going out on my own. Telling me how going out on my own is such a big of a mistake for a rising star. Trying to make me think like I'll be better off w/ them. What a joke!![/quote]
Honestly it's getting close to the point where they're starting to grasp at straws anymore. I would love to hear how Devil's Advocate/Put Trader responds to this....
[/quote]
I didn't realize that Put was back of course posing under another identity, but after that response I now know that yup he's back. Put why arn't you posting more? How's the doggie?
Oh I think he’s just getting wound back up……and honestly, the forum is more interesting with him here as far as I am concerned. You may not agree with him (and I often don’t), but he definitely brings another angle to the table…
[quote=joedabrkr] [quote=Devil’sAdvocate]
I am not aware of a single resignation that did not benefit the firm the mediocre producer left.
[/quote]
As I've said before, Putsy, the only thing the above statement proves is your ignorance and your arrogance.
It's great really. I hope the wires continue to be populated by folks who think like you. Fertile hunting grounds for me!
[/quote]
Joe, you know damn well that when you slouched out of PaineWebber the management was saying, "Don't let the door hit your ass on th way out."
With so many broker dealers out there it can get overwhelming on who run your business through. I"ve looked at so many different firms and they all have their pros and cons. I didn’t like commonwealth due to their payout structure and anal compliance standards. LPL has turned into the FORD of brokerdealers. They’re all over the place and their service and reliablity isn’t that great. My buddy recently joined them from a merger with Paclife and it has been a nightmare for him so far. He’s actually in the process of looking at another broker dealer. We looked together at Securities America, but all they did was nickel and dime where ever they could, we looked at First Allied, but they seemed like a joke. We searched everyone and found that Royal Alliance has a pretty good platform for our type advisory business. They gave us enough money to upgrade our office and systems and so far everything else has exceeded our expectations.
Just got back from LPL's National Conference. Wow!!! Am I glad I went to this. I had already made my mind about choosing LPL over RJFS & CW but now I really feel great about our choice. What a great bunch of people out there. Really got to see how management & employees feel about serving advisors and boy did they come out with some really good new programs/technology/news.
Can't wait to make the transfer!
Totally off the topic, but:
In case you haven't heard, LPL will no longer take a double dip on UITs .
[quote=now_indy]
Totally off the topic, but:
In case you haven't heard, LPL will no longer take a double dip on UITs .
[/quote]
PLease explain. Did they haircut UIT's?
Yes. When you sold a UIT at LPL, the Fixed Income Dept would take 10% before it hit your commission statement (even with Equity UITs). And then, LPL would take 10% of that number. I consider that double dipping.
So, if you sold $20,000 in a First Trust UIT, First Trust would give LPL $450 (2.25% of $20K), but only $405 would hit your commission statement (90% of $450). You would actually net $364.50 (90% of $405) BEFORE the ticket charge of like $25.
Now, LPL will only take 10% of the original $450, so you will now net $405 minus the ticket charge. Basically, if you sell UITs at LPL, you just got a 10% raise.