Not All 90% Advisor Payouts Are Created Equal

coinstaxcredits.netPayouts may appear to be almost identical but scratch beneath the surface, and you’ll find some important differences among payouts that look the same.

For example, at one major indie firm charges were 220% higher than he would have paid at a smaller boutique group — a difference of more than $8,000 per year. Both firms offered 90% payouts. Unlike grid payouts at wirehouse and regional firms, there are three components to advisor payouts at independent broker-dealers.

My Thinkadvisor article explains what those three components are and how advisors can calculate their true net payout at independent firms.

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Will Advisors Accept Restructured ‘Post’ Fiduciary Recruiting Packages?

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Branch managers and recruiters at the wirehouses have an unexpected challenge this year: They need to convince financial advisers to change firms and take less in compensation than they would have received just a few months ago.

Thanks to the Department of Labor’s fiduciary rule, recruiting packages have dropped to 250% of commissions from 300% last year. When you’re talking seven-figure deals, that’s a lot of lettuce left behind in the fields.

How is this likely to play out? Read our On Wall Street article.

Photo: Bronwyn Quillian

 

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Advisors Shouldn’t Play Hard To Get When Switching Firms

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For the past 30 years, the conventional wisdom has been that advisors who want the best recruiting deals should flaunt bigger offers they have from rival firms to encourage other suitors to raise their bids. But is this really always the best strategy?

Read my Research magazine piece.

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Selling A Practice Isn’t Just About The Best Price

potofgoldjeremyschultz Selling a practice to the highest bidder can be an expensive and ill-advised decision. In order to get their back end earn out,  a seller must choose a buyer who can deliver a positive  client experience. Read our On Wall Street piece.

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New Details On Fiduciary Standard Prompt Wirehouses To Freeze Recruiting Deals

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Wirehouses have put the kibosh on their aggressive recruiting efforts, at least temporarily, as details from the newly adopted fiduciary rule dribble out.

In response to information published just before the election, major wirehouses halted the flow of offers – even withdrawing nearly done deals – to avoid even the possibility of locking horns with regulators.

What exactly happened? Read my Seeking Alpha article.

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Advisors Are Learning The Fiduciary Rules Impact:Watch Your Step

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As 2016 draws to a close, advisers are normally preoccupied with the yearly wirehouse payout tweaking rituals. But this year is different.

All eyes are focused on how broker-dealers will respond to the new fiduciary rule adopted by the Department of Labor this year. The key question: Will broker-dealers allow advisers to avail themselves of the best interest contract exemption so they can make commission trades in retirement accounts?

So how are advisers coping with the new rules?

Read my On Wall Street article.

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Five Key Questions To Ask Before Launching An RIA

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Launching an RIA can seem like a daunting task for some advisers. It’s not really just a single major business decision but a barrage of choices that are each equally important in creating a successful enterprise. It can overwhelm the underprepared.

But as with any secret sauce, it’s rarely just one ingredient that makes the difference but a combination that’s unique to each entrepreneur.

I’ve identified five fundamental questions that advisers should ask themselves before going forward with this advisory model.

Read my On Wall Street article.

Photo: Chris Hunkeler

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How Advisors Can Cope With Today’s Low Return Markets and High Expectation Clients

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The low-return environment is the talk of the town. What’s an advisor to do?

I talked to a few of the top experts in the field, who gave me some great hands-on advice on how to manage client expectations.

Here’s my Thinkadvisor piece.

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5 Key Questions To Ask Before Launching An RIA

takeoffbigbirdz

Launching an RIA can seem like a daunting task for some advisers. It’s not really just a single major business decision but a barrage of choices that are each equally important in creating a successful enterprise. It can overwhelm the underprepared.

But as with any secret sauce, it’s rarely just one ingredient that makes the difference but a combination that’s unique to each entrepreneur.

Read my On Wall Street article.

Photo: BigBirdz

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Home Office Visits Can Boost Advisor Deals

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Home office visits are not just for kicking the tires at prospective firms. Savvy advisors can sometimes  use these meetings to maximize the deals that new firms will offer them.

Read my Financial Planning  article to find out how.

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