Groups : Financial Planning Practitioners
I've heard good things about them but have no direct experience. I am with HD Vest but really struggling to make financial planning a viable part of my business so i am interested in thought of broker/dealers too.
I have heard of Genworth Finanical but really don't know much about them. I was a rep with Securities America for over 10 years. I resigned in October, 2010 and turned in my securities licenses. It seemed that I was spending more time on compliance than I was generating financial services income.
What has really has worked for us in terms of generating financial services income, is aligning ourselves with an investment advisor and receiving on-going referral fees. We are sharing AUM fees with the advisor (who we had known for several years prior to the referral arrangement) which are deposited directly by the broker dealer into our bank account monthly. Obviously this arrangement is disclosed to our clients. We sit in on quarterly meetings as the CPA providing tax input as well as a sounding board for our clients. Because of the AUM fees we receive, we do not bill the client for our time. Our clients really like this arrangement. From our prospective, we do not need to be licensed and therefore, we do not have to deal with compliance issues.
Originally, I selected Securities America because they were the broker dealer for the rep we were working with. If we were doing this without the rep, we would probably go with HD Vest or First Global due to their experience in working with CPA firms.
From a quantifable stand point, all major BD's are comperable. Culture is about the only real difference.
HD Vest is good in that they generally understand the CPA world better than most.
Commonwealth is good because of exceptional back office support.
LPL is pretty good.
I generally shy away from Genworth, in the past they have tried to market around their reps and go directly to clients with offerings from their inhouse reps. Likely tey learned their lesson, but if they tried it once, I fear they will try again.
Not real fond of first global, they have what I consider an ethics problem in that they constanty over sell themselves and berate everone else.
I am with HD Vest, they are good, there are areas they need to improve. I have met many, many reps who bounced around and many came back to where they started.
Your success or failure in this busienss will not be driven by the BD.
I moved over to almost exclusively fee based work. It allows us to build a much stronger BUSINESS. I am much happier with the model we are using now, and we are seeing significant growth in assets.
In my twenty three years of experience, I have been with two b/d's Life Planning and Cadaret Grant & Co for the last 22.
I would be hesitant of being with a b/d that is also a product supplier, ie when might they use my customer list to by-pass me. Instead, with Cadaret Grant I feel that their interst is more in line with me since they get "a piece of my action" rather than making money from the production of the product that I deem appropriate for my client.