Comments on: My Business Plan http://www.roadtoindependenceblog.com/2009/07/06/my-business-plan/ Wed, 28 Jul 2010 15:37:53 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Martin Wapelhorst http://www.roadtoindependenceblog.com/2009/07/06/my-business-plan/comment-page-1/#comment-5150 Martin Wapelhorst Wed, 19 Aug 2009 23:46:08 +0000 http://roadtoindependenceblog.com/?p=234#comment-5150 I suspect that certain types of solicitors might expect a higher referral fee than others. Maybe some financial professionals like accountants or other advisers would expect a bigger piece. I had been thinking in terms of 25% for referrals but after doing a web search I was seeing higher percentages. In California, the solicitor needs to be registered as an RIA rep but doesn't have to take the 65 exam. I suspect that certain types of solicitors might expect a higher referral fee than others. Maybe some financial professionals like accountants or other advisers would expect a bigger piece. I had been thinking in terms of 25% for referrals but after doing a web search I was seeing higher percentages.

In California, the solicitor needs to be registered as an RIA rep but doesn’t have to take the 65 exam.

]]> By: Shaun http://www.roadtoindependenceblog.com/2009/07/06/my-business-plan/comment-page-1/#comment-4820 Shaun Tue, 11 Aug 2009 19:10:23 +0000 http://roadtoindependenceblog.com/?p=234#comment-4820 I'm probably late to the party on this one, but I do have somewhat of an answer for Martin. The referral fees you're referring to, if I understand you correctly, are solicitor agreements. Essentially, the solicitor would have to be registered with the RIA and a compensation schedule would have to be implemented. Registration entails being properly licensed. The 70% number you stated seems a bit high and I'm not aware of anyone who pays that amount. I'm an independent advisor and I am in the process of initiating a solicitor's agreement in my local market (Indiana) and the compensation will be far less than the 70% you mentioned. However, I will be paying him over a period of years. The best message board I can think of would be to join some groups on LinkedIn that are investment related. Also, www.financial-planning.com is a site that has a series of message boards that might prove to be beneficial to you. I’m probably late to the party on this one, but I do have somewhat of an answer for Martin. The referral fees you’re referring to, if I understand you correctly, are solicitor agreements. Essentially, the solicitor would have to be registered with the RIA and a compensation schedule would have to be implemented. Registration entails being properly licensed.

The 70% number you stated seems a bit high and I’m not aware of anyone who pays that amount. I’m an independent advisor and I am in the process of initiating a solicitor’s agreement in my local market (Indiana) and the compensation will be far less than the 70% you mentioned. However, I will be paying him over a period of years.

The best message board I can think of would be to join some groups on LinkedIn that are investment related. Also, http://www.financial-planning.com is a site that has a series of message boards that might prove to be beneficial to you.

]]> By: Mike Patton http://www.roadtoindependenceblog.com/2009/07/06/my-business-plan/comment-page-1/#comment-4628 Mike Patton Tue, 04 Aug 2009 16:44:52 +0000 http://roadtoindependenceblog.com/?p=234#comment-4628 Hi Andrew, I'm not sure I completely understand your first question, but you can be an RIA (they are independent) and not manage assets (hence there would be no b/d or custodian as it's called in the RIA world). Yes you can work with a b/d and still be independent. You would need to find an independent broker dealer. You can't work for a large "wirehouse" like Merril and be independent though. I hope this helps. Hi Andrew,
I’m not sure I completely understand your first question, but you can be an RIA (they are independent) and not manage assets (hence there would be no b/d or custodian as it’s called in the RIA world). Yes you can work with a b/d and still be independent. You would need to find an independent broker dealer. You can’t work for a large “wirehouse” like Merril and be independent though.
I hope this helps.

]]> By: Andrew U. http://www.roadtoindependenceblog.com/2009/07/06/my-business-plan/comment-page-1/#comment-4478 Andrew U. Thu, 30 Jul 2009 17:05:59 +0000 http://roadtoindependenceblog.com/?p=234#comment-4478 Can you become an Independent RIA without opening your own broker dealer? Is it possible to work with a broker dealer and still be independent? Can you become an Independent RIA without opening your own broker dealer? Is it possible to work with a broker dealer and still be independent?

]]> By: Mike Patton http://www.roadtoindependenceblog.com/2009/07/06/my-business-plan/comment-page-1/#comment-3688 Mike Patton Thu, 09 Jul 2009 19:42:51 +0000 http://roadtoindependenceblog.com/?p=234#comment-3688 Martin, I'm not aware of any message boards. I've often thought it would be a good idea, but also don't think I'd have time to visit. Martin,
I’m not aware of any message boards. I’ve often thought it would be a good idea, but also don’t think I’d have time to visit.

]]> By: Martin Wapelhorst http://www.roadtoindependenceblog.com/2009/07/06/my-business-plan/comment-page-1/#comment-3645 Martin Wapelhorst Wed, 08 Jul 2009 22:26:10 +0000 http://roadtoindependenceblog.com/?p=234#comment-3645 Thanks for your response. I've seen figures from 20% to 70% of management fees being paid on an ongoing basis for referrals. Are you aware of any message boards that RIAs frequent to exchange ideas about the biz? Thanks for your response. I’ve seen figures from 20% to 70% of management fees being paid on an ongoing basis for referrals. Are you aware of any message boards that RIAs frequent to exchange ideas about the biz?

]]> By: Mike Patton http://www.roadtoindependenceblog.com/2009/07/06/my-business-plan/comment-page-1/#comment-3594 Mike Patton Tue, 07 Jul 2009 15:11:57 +0000 http://roadtoindependenceblog.com/?p=234#comment-3594 Hi Martin, Thanks for your comments. I do not pay for referrals. I thank them and may take them to lunch to show my gratitude, but no money changes hands as a result of a referral. I have no idea what an industry norm would be, but some might share revenue (i.e.; a % of the asset mgmt fee). I wish you well, Mike Hi Martin,
Thanks for your comments. I do not pay for referrals. I thank them and may take them to lunch to show my gratitude, but no money changes hands as a result of a referral. I have no idea what an industry norm would be, but some might share revenue (i.e.; a % of the asset mgmt fee).
I wish you well,
Mike

]]> By: Martin Wapelhorst http://www.roadtoindependenceblog.com/2009/07/06/my-business-plan/comment-page-1/#comment-3576 Martin Wapelhorst Mon, 06 Jul 2009 22:28:44 +0000 http://roadtoindependenceblog.com/?p=234#comment-3576 Your blog is very interesting. It's good to get the perspective of an actual practicing independent adviser. I'm a long time investor and recently registered IA in California. My question is regarding solicitors. Do you pay for prospect referrals? If not why not? Would you happen to know the industry norm for solicitor compensation? I'd very much like to get your input. Your blog is very interesting. It’s good to get the perspective of an actual practicing independent adviser. I’m a long time investor and recently registered IA in California. My question is regarding solicitors. Do you pay for prospect referrals? If not why not? Would you happen to know the industry norm for solicitor compensation? I’d very much like to get your input.

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