Thanks whomitmayconcern - very insightful and just the type of information that I am looking for.  One of my goals is to build a network of brokers just as you have.

I too feel that WSFN is a great choice for what I am looking to do.  I haven't made the switch yet, but am impressed with FiNet.

Keep up the good information flow.

From a AGE FC thinking about Finet, Thank you Whomit. Someone said something about reduced payouts if you make the change, have you heard anything about that?

I have not, but I think it makes some sense in that the branch will want to be made whole for the money they put into brokers.

I think that there may be an accomodation if you are joining an existing Finet branch (which you would sort of have to do because the reduced payout would make it harder for you to stay in business alone) and that sure would make the Finet guy happier too. The question comes to how many ways can this pie be cut and still satisfy anyone?

In other words, if the Finet guy is making 85-90% and you come in with a 15% haircut and he wants to make a 10% too then you're down to 60% before expenses (ticket charges, E&O, VPN, Tech, Health insur, SSI, so on and cetera) so maybe you're netting 40% it's six of one ish. Now if they put a dollar figure that you need to pay to get your Indedendence from the branch (say 100,000) and after that they stop taking the 15%... well that might make it a good option. But you see what I mean about the pie slices.

OTOH, Wachovia could take the upfront money that they were going to pay you if you signed the deal and credit it to the branch you are leaving (if you go to Finet and then call that your working capital loan which you will pay off at a 3% reduction over time, if you leave you still owe it plus interest).

Independence has arrived and I'll pack up my office and work for the next few days out of my house on the coast. Technology is great! use it to be independent, no matter where you work!

Happy Fourth everyone!

Happy Independence Day to ALL!

My “Independence Day” was actually the Friday before Memorial Day weekend…about 2 years ago.  A happy day.

I’d like to chime in on the FiNet discussion.  This is my first post to the board but I’ve been reading it off and on for a while.  I’ve been with Finet for about 2.5 years and am quite happy.  I agree with much of what has already been said.  I looked in depth at Raymond James, LPL and FiNet.  FiNet seems to have a reputation of not being as fully independent as an LPL or Raymond James.  I would disagree with this perception.  There is a little bit of a wirehouse feel and culture (remember the majority of Wachovia FA’s are employees, not indy/FiNet)  However, I have good friends and LPL and Raymond James and can do everything they can.  The only thing I cannot do is charge hourly or a hard dollar fee for a financial plan.  This is because I have to work through FiNet’s RIA and they have not (yet) allowed these hard dollar fees.  I own my practice 100%.  I receive 90% payout on fee-based and packaged products and 85% on stock and bond transactions (I do very little of the latter).  I can completely customize my name and marketing materials and hire FA’s under me.  I REALLY like our fee-based platforms and believe they are the best on the street.  I use a “group name” which has my custom practice name and logo but also the Wachovia (in smaller letters) underneath.   This allows me to brand myself but also lets clients know that I’m affiliated with a major firm.  I could drop the Wachovia part of it if I wanted.  The other thing that has not been discussed is Wachovia’s Envision financial planning software.  It is very cutting edge and easy to use, and clients love it.  Compliance here is ok.  I think they may be a little more picky than and LPL or RayJay but I’m not complaining.  FiNet will also offer a little more in transition assistance ($$) than LPL or RayJay to help you get started.  I came from EDJ and produce around $500-600k.  I think FiNet is best if you do over $350k and are focused on fee-based/managed money.  Just my 2 cents.

Good post Glad2Bindy.

Couple of questions for you and whomitmayconcern:

1.  You mentioned FiNet is best for 350K producer and above.  I thought you had be at the $1,000,000+ level to qualify for FiNEt.  Is that requirement only for current WS employees?

2.  The fee-based platforms and managers you use…are those also available to regular WS employee brokers?

3. Is Envision something you can do right from your personal workstation or is it something that has to go through the WS homeoffice?

Thanks

Billybob,

1.  FiNet will take anyone that does over $250k if they are coming from another firm.  Current WS PCG/employee channel reps rarely are allowed to move to FiNet.  I've heard of a few situations where they basically have to threaten to quit or go to another indy, and then and only then will PCG allow them to move to FiNet... and they have to be a decent producer but I've never heard numbers.  I've also heard that they may start letting them go to FiNet at a reduced payout for the first couple years but this hasn't happened yet.

2.  FiNet uses all the same back office software, trading platform, and is offered all the same fee-based platforms and money managers as the PCG guys.  Any type of fee-based businees you want to do you can... they've got everything.  We pay admin fees that range from 30bps on sub-100k accounts to 10BP on 500k plus, and then we get 90% of that.  So if I charge 1.25% on a 250k account, there is about 15bp admin and then I net 90% of 1.10%.  We also have access to institutional share classes which keep expenses low for clients.

3.  Envision is something I do from my workstation and I control it.  Usually I show it to clients in my office and do not print them a plan.  But I could if I wanted.

You’re forgetting one thing. It’s owned by a bank, and they will f#$K you in the end.

[quote=Glad2Bindy]

Billybob,

1.  FiNet will take anyone that does over $250k if they are coming from another firm.  Current WS PCG/employee channel reps rarely are allowed to move to FiNet.  I've heard of a few situations where they basically have to threaten to quit or go to another indy, and then and only then will PCG allow them to move to FiNet... and they have to be a decent producer but I've never heard numbers.  I've also heard that they may start letting them go to FiNet at a reduced payout for the first couple years but this hasn't happened yet.

2[/quote]

Not quite right. PCG brokers have been able to go Finet for over a year, but at a reduced payout. This reduced amount goes to the PCG branch losing the broker for i believe 2 years to compensate for the branches loss of revenue. There is a second quasi independent channel called "profit formula" that requires a Minimum of 1 Million to sign up.

EZ said: "You're forgetting one thing. It's owned by a bank, and they will f#$K you in the end."

While this may be true (I personally disagree, but no-one knows for sure).  I don't see how it is any different than the threat of LPL going public or RJ being bought out...both of which I perceive as being very likely in the next few years.

FiNet is quite different than it was a few years ago.  It is the premier Indy platform.

...are you looking to go indy or are you a FINET recruiter?  You're laying it on a bit thick...

LOL!

No, I am not a recruiter....just someone who has done a significant amount of due diligence prior to this juncture - speaking for my practice alone, not anyone else.

...fair enough...couldn't help myself...

An observation...I think your payout is lower because of your active trading model and the fact that you intend to cover client ticket charges.  My payout is about 86%, but that's before technology charges...

Indyone -

I think you are correct about my payout, but it is a result of the admin fee that FiNet charges on the discretionary accounts, not the ticket charges. 

With LPL and RJ the ticket charges just ate me alive, but with FiNet they allow me to trade as often as I like while only paying an admin fee of 35bps max, down to 10bps on larger accounts.  I believe this is what results in my lower payout.

I may need to rethink my business philosophy/style if others are getting 85% or better payout before local expenses!  Damn!

I keep hearing about 82% before office expenses and met with a guy who is more active and pays the ticket charges on the wrap account and he came in about 79%, but was very active. 

The office expenses are the wild card depending on where you live and how much support/high end you go.

I'm in agreement with maverick/goose on the comment that "they are owned by a bank and will F you in the end".  Other Indy's have this risk too.  FiNet is actually a seperate legal entity with it's own management and supervisory staff.  Since we own our practices if the f*%k us they are going to wind up f*%king themselves because we'll just leave.  And they know this.  My only gripe is that because the FiNet is so small relative to PCG, sometimes the back office operations and compliance people and polices just lump us all together and don't realize we are under a different platform.  On the payout issue, most months I'm between 80% and 84% before local expenses.  I have 1.5 employees and a fairly low rent.  About half my practice is advisory fee based and the other half a mix of mutual funds, stocks, bonds and annuities.  So I wind up with around 55-60% Net. 

Thanks for the input Glad2Bindy. 

How long have you been with FiNet?

Did you come from a wirehouse?

Are you happy?

Maverick/goose,

Been with FiNet 2.5 years, happy for the most part.  CSG platforms are very cutting edge and I think our payout is fine.  Came from Ed Jones so by default I'm happier.  It sounds like you are FiNet also.  I really wish we could charge hard dollars/hourly for planning.  Especially with how powerful Envision is.  Do you have any gripes?

Glad2Bindy -

I am not with FiNet, but am considering it heavily.  I have done quite a bit of due diligence on the indy platforms and consider Finet to be top candidate - for my practice, can't speak for others.

I too, wish that Finet would allow hard dollar fees for planning.  I think that the clients believe that they get what they pay for in regard to the planning.  Plus, envision is very, very impressive.  I would make it a major part of my business if with Finet.

Forgive me...I am sure this is probably a very dumb question, but if your with Finet do you  get access to  Wachovia  research? 

How much do they charge for this  on the Indy side?

This is a very good topic and thanks to all for the contributions!

Pinn