Should I Get Series 65, 6 & 63, or 7?

[AboutThatLife]

I'm ready to start working with investments. I have always had an interest in them and I had my own brokerage account in my teens, where I traded stocks and options.

The Goal
I have my insurance license, my biggest concern is doing rollovers and transfers from brokerage accounts. I'm aware its a grey area(especially for retirement rollovers), but I'd feel more secure with the license.

The 65
Because of my current knowledge, I feel the 65 would be the most versatile and easiest to pass, also the least expensive option at $165. The problem is I want to use it with my insurance license and I have no idea how to run a financial firm.

The 6 and 63
The 6 and 63 I'm not sure about. The 6 is probably the easiest/shortest overall test, but when you add the 63(do you have to have it?), I don't see the advantage over the 65, except that I wont have to know how to run a financial firm because I'll be under a broker dealer. It's more expensive at $225 and it will allow me to do less.

The 7

This is the holy grail. I would love to take this one first. I would love to only have this one, but its overkill for insurance and I don't know where to put it. I could combine it with a 66, which would give me maximum flexibility, especially working with realtors and investors. With the benefit of being under a broker dealer. At $460 it's the most expensive option.

 

[VolAgent]

Without a 63 or 66 you will be unable to sell any variable insurance product. I can't recall if they are required for investments, but I do remember them being required for the insurance products, life and annuities.

 

[DHK]

I'm ready to start working with investments. I have always had an interest in them and I had my own brokerage account in my teens, where I traded stocks and options.

The Goal
I have my insurance license, my biggest concern is doing rollovers and transfers from brokerage accounts. I'm aware its a grey area(especially for retirement rollovers), but I'd feel more secure with the license.

The 65
Because of my current knowledge, I feel the 65 would be the most versatile and easiest to pass, also the least expensive option at $165. The problem is I want to use it with my insurance license and I have no idea how to run a financial firm.

The 6 and 63
The 6 and 63 I'm not sure about. The 6 is probably the easiest/shortest overall test, but when you add the 63(do you have to have it?), I don't see the advantage over the 65, except that I wont have to know how to run a financial firm because I'll be under a broker dealer. It's more expensive at $225 and it will allow me to do less.

The 7

This is the holy grail. I would love to take this one first. I would love to only have this one, but its overkill for insurance and I don't know where to put it. I could combine it with a 66, which would give me maximum flexibility, especially working with realtors and investors. With the benefit of being under a broker dealer. At $460 it's the most expensive option.

1. The Series 63 is a STATE requirement, so it will depend on your state. I think there's only a couple that don't require it, but Wyoming has no regulator for securities! lol. Generally, if you take a series 6 or 7, you'll be required to do the 63.

BTW, you're right about the Series 7 being 'overkill' for an insurance producer. You simply don't need it. If you have anyone with individual stock certificates, have them go to their nearest brokerage firm and trade the stocks there. You can ACAT the funds later.

2. Don't be over-confident with the Series 65. I took the Series 66 (which is the 63 + 65 in one exam) 3 times back in 2004. Back then, you had to have a 71% or better to pass. First time I got a 70%. Second time (after studying some for the Series 7), I got a 67%. Third time, I passed with a 72%. I'd go with either TestTeachers or Training Consultants. (Securities Training Corporation or STC really bombed the 66 for me big time.)

Here's the problem: I don't know what you want to DO for your clients.

A Series 65 will allow you to either create your own RIA firm, or affiliate with an RIA firm as an IAR. IARs generally ONLY do "institutional asset management" through 3rd party asset managers. Typically $100,000+ investment or relationship minimum, but some will have lower requirements. You will collect a fee in exchange for providing ongoing advice.

If you open up your own RIA firm and select a custodian for assets, etc., then you can open 529 plans "held direct" with mutual fund companies and do trades on a fee-basis. However, I would not expect that with being affiliated with someone else's RIA. But, being with someone else's RIA may have significant cost savings for E&O, technology fees, and so much more.

A Series 6 & 63 will allow you to sell mutual funds and variable insurance contracts (life & annuity) and earn commissions for the sale. Expect that the broker/dealer you affiliate with to interfere greatly in the kinds of products you are allowed to sell due to the DOL and BICE rules, etc. Broker/dealers are petrified of being sued.

Until you know what you want, it would be more difficult to guide you.

 

[Rick Deckard]

I want to share a story about people and the public at large when it comes to investing.

My spouse worked at a major University where the 401k/403b was you invest $1 and they invest $2 on top up to 5% of your salary. So you put in 5% and you really are working with 15% of your salary. Every dollar is matched with 2 more from the employer and for 7 years we built quite a little pile while the market was down, you can imagine what the last 12-24 months have been like, the last 6 months have been incredible.

Would you believe that over 50% up to perhaps 75% of the folks employed there did not take part in the 401k program? We would hear things like "I can't afford it" How can you not?

And this mentality permeates the landscape. Folks know that they need to invest but come up with every excuse possible why they cannot as they are paying for that $750 iPhone, just makes one sick to their stomach.

I hope you acquire one of these licenses that will allow you to preach the good fight and perhaps maybe save a few lives along the way. Get them all to invest as much as they can in index like funds and get as much as you can under management and then about 10-20 years down the road you will have $50 Million under management from thousands of different folks who invested and you will be reaping a trailer from that to the tune of 6 figures+ before you even get out of bed Jan 1. And that's on top of the insurance you override as well. It can be a great life.

 

[DHK]

You might want to keep this in mind regarding broker/dealer licensing:

https://insurancenewsnet.com/innarticle/finra-clarifies-advisors-can-cant-social-media

That's not all the rules and compliance one may have to go through with a 6, 7, & 63.

 

[Stephen]

I'm ready to start working with investments. I have always had an interest in them and I had my own brokerage account in my teens, where I traded stocks and options.

The Goal
I have my insurance license, my biggest concern is doing rollovers and transfers from brokerage accounts. I'm aware its a grey area(especially for retirement rollovers), but I'd feel more secure with the license.

The 65
Because of my current knowledge, I feel the 65 would be the most versatile and easiest to pass, also the least expensive option at $165. The problem is I want to use it with my insurance license and I have no idea how to run a financial firm.

The 6 and 63
The 6 and 63 I'm not sure about. The 6 is probably the easiest/shortest overall test, but when you add the 63(do you have to have it?), I don't see the advantage over the 65, except that I wont have to know how to run a financial firm because I'll be under a broker dealer. It's more expensive at $225 and it will allow me to do less.

The 7

This is the holy grail. I would love to take this one first. I would love to only have this one, but its overkill for insurance and I don't know where to put it. I could combine it with a 66, which would give me maximum flexibility, especially working with realtors and investors. With the benefit of being under a broker dealer. At $460 it's the most expensive option.

I have my 7 & 66. If I had it to do over again I would just do the 65. Find a TAMP that you love and place is much AUM as you can with them.