[quote=cutacheck]

ALBY,

Most people who are dciding to leave always have that same concern.   Quite honestly, if you are very good at sales and closing you making up 100-200k in gross over the next 2-3 years is nothing comapred to what you will build in the long run.  You will look bakc and laugh at the fact that you even had that concern, and hopefull give the same advice to another young rising start whose trying to make it in the biz.  Rememebr you will also have 400k + in the bank.  Your next question should be, given the amount of gross I am doing now and all my current monthly living expenses, how long will it take me to save 400k.  Now u are really thinking. 

[/quote]

You make some good points, but I sure wouldn't look at the 400k in your example as savings.  At least, a good chunk of it.  It sounds like you've moved in the past, so the following is of no surprise to you, but I think it should be kept in mind by readers of your post.  After your transfer, there will be a decent amount of time to bring your book over, and generally, you won't bring it all.  And while growth may eventually happen, you are usually focused on the transition for 6 months to a year.  Even after that, most advisors move lets say, 70% of production. 

All the while, the 400k loan is being forgiven each paycheck, on a 6 year contract, that would be an additional "taxable income" of over $5,500 a month, thus a net drag of something like 2k per month on cash flow. 

The point is, one should be prepared for a serious cash flow impact post-move.  That 400k can get whittled down pretty heavily by the tax burden and overall reduced cash flow. 

For what its worth, when I ran the numbers, I determined it was better to make one move, and a permanent one.  I went RIA, doubled my payout, and figure I'll make back the foregone upfront bonus in about 4 years, and then have the gravy forever more, without having to go through the life altering event of leaving my BD again. 

Best of luck whichever path each of you shall choose. 

Great post, Fly. Thanks for the thoughtful analysis.

Flyonwall, I think one of the attractive things about the upfront check is the time value of money.  If you take your 400K and get a resonable rate of return of 5% over 6 years you earn 120K, that pays a good portion of the taxes from the check.  Also, many FA's build up debt building their businesses and a check gives them the ability to pay that off sometimes at high interest rates.  I'm not saying Indy is not the best option, but for some a check can make sense. 

FINET 1099 QUESTION...

For each loan/ signing bonus you get the money upfront (if that is what is promised) and you get a 1099 for phantom income each year. Each month you get a schdule of what was paid down and what you owe.  At the end of the year you get a 1099 for net fees paid to your branch for production and another 1099 for portion of the note paid in that year.  It's a pretty good deal because unlike the wirehouse world your are a business owner.  You can legally implement tax stategies that benefit you and your practice to offset 1099 income...get a good accountant!

No leads but you do get a fair amount of call in questions.  I just happen to be the broker of the day every day.  I have picked up a 500K account this month for picking up the phone.  I use the WFA name. You also get alot of bank questions and mortgage questions. I refer them to the local.."store" to handle.  FINET is a pretty fair deal coming from PCG but I would also consider Raymond James and LPL.   FINET does not pay commisions on mortgages but does pay on asset back loans. If you are doing 400K and have alot of fee based business it's a great deal.  I hope this helps all. Good Luck.  My quote:  "Make a decision before it's made for you".  Bitching moaning and gossiping does not pay well...I tried it!