Saturday, October 6, 2007

Attention RIA's.. Your Feedback Appreciated

I unraveled a whole can of smelly worms when I began researching my series on making the transition to Registered Investment Advisor.

Seems there are as many opinions about the RIA process and its implications as there are nutty people in California. It is hard to know who is doing it right, who is full of hype, and what is a good price for helping advisors make the transition.

If you are an RIA -please post or email your story to: I need to hear from those who used FMO's to assist you, those who did it themselves, those who did it and REGRETTED it, etc. etc. I am hoping to ferret out the best information for those of you who have decided to make the leap.

Elsewhere on the Financial Advisor Netzone- Put these in Your Calendar

I apologize that some of you interested in the free admission to ED SLOTT were unable to reach Robert James and Associates. There were a lot of people wanting to know about the Vegas presentation and how to get in free. The best course of action to follow if you can't get through on the 866-204-3631 number is to email Bob Tonochio Tell him you saw it on the blog and ask him to call and explain the requirements.

We are filling up for the MAX BOLKA teleclass on October 29. Cost is $30.00 but you don't need to pay until October 17. So if you are uncertain whether the date is open for you, go ahead and register now. If you are unable to attend you will get a refund or credit toward another class.

Sid Walker's SELLING WITHOUT WRESTLING online preview is coming up on October 11. Join Sid and find out why nice guys and gals really DO finish first. Click below to register.

LIVE! 60-minute FREE PREVIEW Teleseminar
Thursday Afternoon, October 11, 2007
12:00 pm PT • 1:00 pm MT • 2:00 pm CT • 3:00 pm ET
Cost: FREE

Have a great weekend. See you on Monday!


1 comment:

Todd V said...


As you get more info on the conversion to RIA, I'd really be interested in reading it (heck, I'd even pay for it if the info is good enough)... I will be making the transition in the next year as working with clients in this capacity is, clearly, in their best interest.

Here's a quick example... There is a DPP program that many of my clients like (it is a mortgage pool that pays just over 7%)... The investment company pays a 9% commission when sold by a registered rep. However, when sold by an RIA, the 9% that would have been given to the registered rep as commission IS GIVEN TO THE CLIENT IN THE FORM OF A BONUS...

Imagine, you put $100,000 of a client's money in this investment and when they get their next statement, It shows $109,000 as the balance. By the end of the first year, they have a balance of $116,630 (they earn 7% on the entire balance).

Clearly, as a registered rep, I'd have made $9000 of immediate commission on this sale, whereas, as an RIA I would make $1000+ per year for as long as they keep the investment. Would I make more money doing it as a commission product? Probably...

However, my belief is that the happy client will tell their (rich) friends, so I will likely end up with more good clients as a result.

I look forward to reading what you learn...