Anyone Here Do Financial Advising Too?

[Stephen]

I started in insurance 1o years ago and added securities licenses 4 years ago. I have series 7 & 66 currently, if I had it to do over again I would just do my 65 only.

 

[LifeHealth]

If you're not going to be selling insurance solutions for your income, then you may need to sell planning on either a project/plan basis, or an ongoing retainer basis.

I think this would work best for me! The only conflict I see is The to do's in November and December are at the same time as Open Enrollment but I could probably do those things and health insurance if they are on Obamacare (subject to change soon) in an hour meeting I would think. I wonder what the best retainer would be to charge? Possibly do a retainer until investments are 'this' much type of deal. Our agency offers all different types of insurance so this could be an added benefit for sure! Article most what I'm looking for I've seen so far.

 

[DHK]

You'll probably find a LOT more information on what you're looking to do by either "copying" or joining XY Planning Network.

Check it out: XY Planning Network | Fee-Only Financial Advisors For Gen X and Gen Y

 

[LifeHealth]

You'll probably find a LOT more information on what you're looking to do by either "copying" or joining XY Planning Network.

I found it on my own through your other link haha! Thank you so much this is exactly what I'm looking for!!!

 

[pfg1]

I found it on my own through your other link haha! Thank you so much this is exactly what I'm looking for!!!

DHK = Information guru

If only you could bottle that knowledge and sell it!

 

[LifeHealth]

DHK = Information guru

If only you could bottle that knowledge and sell it!

I would buy a 6 pack!

 

[walthamny]

I started in the Asset Management world, moved into life insurance world, and now I am independent RIA. I still sell life and DI, but most of my business is qualified money and planning.

I would recommend So you want to be a financial Planner by Nancy Langdon.
getting a series 65 is easy, the more important thing is how you are going to learn how to manage assets. Most will recommend you to get a CFP but that wont prepare you for many other aspects of asset management. Also subscribe to Michael Kitches email subscription. He does not like permanent insurance, but his articles are mostly good.

Nowadays, most Custodians require 2 to 3 million to start. Thats easy to build if you can work on it full time, hard to do part time.

At the beginning you either have to just stick to fee for financial plans until you can build a book of 2 to 3 million. There are many 3rd party asset managers that can help you build the business but they will take their cut. If you are starting out doing $500 financial plans, you need to sell about 8 a month to survive depending on where you live. Thats about 96 households a year. Well, if you can sign up 96 households a year, you realize quickly you would make more just selling life insurance to them.

Now you should know I make more selling LI and annuities than asset management however, I know asset management gets me in the door.

 

[sman]

Hey guys I appreciate all the answers I get on this. I don't mind you being brutal at all.

I'm currently a Health/Life/Medicare agent and I'm really wanting to start in investments and financial advising. Is any one here a financial adviser? Did you start in insurance? Not sure what I should do! Should I get my series 7&66 or my 63&65 only? Any advice would be greatly appreciated.

I have my 6/63 & 65. Started in insurance in 1989, got securities licensed in 1998. Over the years my business has evolved into mostly Medicare. I couldn't live off of my securities commission/trails alone. But that's mostly because it hasn't been my focus for quite some time. I have debated for the last few years on whether or not I want to continue with my 6/63 and a broker dealer relationship. While it isn't a large sum of money, I net about $3k per month from it so I hate to just leave that on the table. With that said, I do see a day where I let the 6/63 go and just hang on to my 65. If I could find a local RIA to partner with I'd probably do it sooner rather than later.

All that to say, you may think you want to do it, but it isn't as glamorous as most people think. Unless you are doing significant rollovers, it will be a slow grind to make a sizeable income from securities. For example, let's just say you have a husband and wife who both max out IRA's ($5,500 each). In Class A shares, the mutual fund company will pay 5.00% to your broker dealer. Let's assume you start at a 70% payout. You'd make $385 over the course of a year. And the paperwork and oversight required to do this is much greater than it is with insurance.

You also have to consider the cost. Most broker dealers require that you purchase E&O through them. My E&O is about $2,000 per year. Then there's the technology fee (this will vary by B/D), mine is $600 per year. Next are the annual registrations. I think mine are about $1,000 per year (more than one state). So that's about $3,600 before I make the first dime. Another way to look at it is about 25 people maxing out IRA's just to break even. Of course, one good rollover can take care of that as well.

You have to ask yourself if you are willing to put in the time and energy to grow that part of your business. The good part is you have other income. The downside is that to earn the other income it takes up time that can't be spent on growing the investment side of your business. Only you can determine whether or not it's worth moving in that direction. Best of luck.