After 24 years with ML and UBS, I went independent and could not be happier. Been on this side for 1 1/2 years and could never go back. I walked away from a lot of earned money and accepted no upfront money. We were a $750MIL TEAM.
What about the healthcare paid by the wirehouse, or the 8% 401k match at Merrill? I'm an ML FA and just curious how you would view that. Also, the majority (70%) of our assistants are paid for byML. Thanks Michael! You are the the man! Maybe like you said, it isn't so much about making more money but liking the independence.
Jacob, If you're actually doing $500,000 of production and keeping less than 50%, then you'd have $250,000 of additional revenue available if you went independent. I'm pretty sure you can pay for 70% of an assistant, and your health insurance, and cover a 401(k) match, for *WAY* less than $250,000... In fact if you do the math, you can have far less production than $500k and the math is still very favorable for you. Just to do the calculation for yourself. If you're at 42% on the grid, does 58% of your revenue really equal 70% of an assistant plus your health insurance? :) - Michael
Jay, It's not substantively different in switching from an insurance broker-dealer. The biggest shift you will likely notice is simply the transition in business model itself, from the product-based insurance world into AUM or other fee-for-service models. Though you can still do the some cost comparisons of 'what you keep from your grid after payouts, vs what you'd have to receive 100% of the revenue and pay your own expenses thereafter'. You may find some software and investment solutions are also cheaper as an RIA when you go direct (though that's usually not the make-or-break for the decision, unless you're a heavy user of third-party TAMP solutions that may be more expensive on your platform). The real question is what kind of advice business you're trying to BUILD in the first place?
@@MichaelKitces I have experience with working for a large insurer, then salaried at a wirehouse. So I've seen both sides, although I prefer the wealth management side over pushing products. I want to move towards being a fee-for-service, especially since my better clients are all older, and always require investment advice. I have also started to become somewhat disenchanted with annuities, because I have seen them being sold improperly. So currently I am studying for my 65, while taking a designation at the American College.
It depends on how you handle the transition. Many advisors will get their transition firm set up in advance, to the DAY they're switching they resign from their current firm that morning, and file to become an advisor with their new firm that afternoon so they can immediately begin to reach out and retain their clients. However, there are a lot of VERY serious rules and restrictions about what information you can and cannot take when you leave (see www.kitces.com/blog/broker-protocol-recruiting-requirements-for-moving-brokers-to-breakaway-or-go-independent-ria/ on Broker Protocol for some detail), and what exactly you can say when or not (to avoid breaching your current employment with your current firm before you leave). Cannot emphasize enough if you're considering this to Get. A. Lawyer. Who. Specializes. In. Breakaways. To make sure you don't step on a land mine. But it can (and absolutely is) done quite often. Just Google "breakaway broker".
you prolly dont give a damn but does anyone know a method to log back into an Instagram account?? I somehow lost the account password. I would appreciate any help you can offer me.
@Hassan Harrison i really appreciate your reply. I found the site through google and im waiting for the hacking stuff atm. Looks like it's gonna take quite some time so I will reply here later when my account password hopefully is recovered.
