I've been a Financial Advisor for 4 years, but with this market the ups and downs of commission is making me crazy!

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Comments (11)

thinking new career in Richmond, Virginia

59 months ago

Many of my clients are friends, and I don't want to let them down, but the lure of a fixed salary in a different company or industry is very tempting. I have a partner that could service my clients- so that's not the primary concern. I just don't know if I should make the leap.

I've posted my resume online and all the inquiries I'm getting are for other Financial Advisor positions- which are also mostly commission. How do I make myself attractive for other sales/consulting positions if I decide to make a change?

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Wealth Manager in San Ramon, California

59 months ago

Hi Thinking, I completely understand your situation because even with a few extra years under my belt, this market and economic climate has made this one tough career. I've seen several advisors in my office that are greater than 10 years LOS simply walk out the door and leave the industry for good. Others with weaker business models (all transactional) have had their income cut in half from 2007...the point is you are not alone. So the question here is if you really want to give the incredible amount of work you've put in when you are probably only a year or two away from having considerably more stability in your income. The markets are getting better, less advisors are competeing for the same business...better times are coming if you wait it out.

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Wealth Manager in San Ramon, California

59 months ago

If not why don't you look into being a wholesaler (salary plus commission), working as a product specialist? It keeps you within the financial industry and your experience would certainly apply.

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thinking new career in Richmond, Virginia

59 months ago

I've been thinking more and more about moving to a fee-only firm. I'm a CFP, and find myself giving away tons of advice, but not getting paid unless I sell something. Do you know much about the income potential/stability with that type of model?

I don't like the idea of wholesaling because of the amount of travel involved, although I'd be open to the right position.

Thanks for your thoughts and feedback, it's so nice to feel like I'm not alone.

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Wealth Manager in Pleasanton, California

59 months ago

I work for a wirehouse but about 70% of my business is fee based advisory. Except in certain circumstances (client has a CD portfolio, etc); it has always been important to me that I was being compensated for my advice and service, not from doing a transaction. Our quarterly fees are "smoothed" so my income does not dramically change from month to month. Obviously the decline in the markets had an impact of my client asset levels which of course made my income go down as well but I have certainly weathered through this downturn better than advisors that were purly transactional. Income potential and stability? Well the potential will be determined by your AUM and the fee that you charge. I know 2+ million dollar producers that are mainly fee only. Stability will be determined by providing the value you promise to your clients and them staying with you. Asset levels may change from month to month along with your fees but once you have enough AUM and do right by your clients; I don't think your income will be a problem...Either way best of luck

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Agent Surferi in San Diego, California

59 months ago

Can someone help me find Affordable E&O insurance? I was turned on to www.EOforLess.com and was completely sold but I'd like to have a little user input before I press that last ok button.

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HarborCityInvestments in Melbourne, Florida

55 months ago

My E&O is mandatory from my broker dealer and costs $200.00 a month deducted out of my commissions........I have no choice in the matter.

Which is too bad because I've never even had a verbal complaint, so I am sure a policy based on my years in the business and my record would be way less.

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IndeeBD in Mobile, Alabama

54 months ago

The E&O is mandatory at every firm I'm sure. It's $2800 a year at mine prorated depending upon when you start. We have by far the most unique opportunity for brokers that want to go independent. We have a set fee monthly based upon production. ex. $1100/month 0-$250000. We allow for FA's to have OBA obviously it has to be disclosed through our compliance officer but it's still pretty cool. As far as fee based business, it's a flat 2% charge for conducting such business. If someone wants to take talk about this opportunity please email me at mivy@harborfs.com or go to www.harborfs.com Good luck with everyone's endeavors.

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JasonTR in Philadelphia, Pennsylvania

54 months ago

thinking new career in Richmond, Virginia said: Many of my clients are friends, and I don't want to let them down, but the lure of a fixed salary in a different company or industry is very tempting. I have a partner that could service my clients- so that's not the primary concern. I just don't know if I should make the leap.

I've posted my resume online and all the inquiries I'm getting are for other Financial Advisor positions- which are also mostly commission. How do I make myself attractive for other sales/consulting positions if I decide to make a change?

Other sales positions should be easy since you have experience

Don't see a consulting position coming from the financial advisor field since all you did was sell insurance/investment products

the allure is that advisors understand all the financial lingo, but honestly you/we did not produce any of the numbers backing up the products we recommend..we just read them from the report we get from a financial program like any person could do and try and make the best judgement...now if we actually did some calculations ourselves to evaluate risk i could see a career path as a consultant in the finance/accounting field, but most professionals know where the numbers come from

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Jim in Bradenton, Florida

49 months ago

I like NAPA Direct E&O Insurance. It's only $475 a year, plus they have a monthly payment options for like $26 a month after your down payment. www.napa-benefits.org/eo

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jaszzee in Laguna Beach, California

30 months ago

I was able to get my E&O for $361 through uniteddefendco.com/quote?aid=

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