The securities professional is no more informed than you at handling investments. You may believe that the financial planner knows so much more about managing investments than you. He, needless to say, knows about the stock market. NOT! In case you walk into any large (or even small) securities firm, the rep will push you into a managed account, one that is handled outside his firm. Nowadays, the ordinary broker does not choose stocks or mutual funds for his customers. He is simply a conduit to an outside investment manager with a good track record. I'll bet you may do this well also.
When you sell fixed products, particularly annuities, and your customers take the cash out of variable products (stocks, bonds, mutual funds, etc.), you are often open to the charge that you "told" the customer to liquidate the variable item and therefore gave investment guidance without a license . So become a registered investment adviser mainly because then you DO have a license and can't get in trouble over this charge. Note that the charge does not need to be true to be able to cost you plenty in legal fees and maybe your insurance license.
Don't squander any more time not getting paid
You've been giving people guidance for years--for free. Does your legal professional do that? Your Certified Public Accountant? Your doctor? Then why do you? It is best to charge for your time and guidance. As soon as you receive a registered investment adviser certificate, you can get paid for your time and guidance.
While the money manager deals with your client's account, you receive a part of the fee every year simply for maintaining the client relationship. It's likely you got into this industry mainly because you like people. For that reason, preserving relationships is what you're good at so why not get paid for it each year.
Get paid for annual reviews
Should you do retirement planning you are able to charge a fee for that. Your earnings may be rising as people will need to redo their retirement plans which have been decimated. In the same manner, in the event you do estate planning, planning for college funding or other kind of advice-based planning, in this market, you can maintain a good flow of income providing what people would like.
Likewise, we have a whole lot of workers hitting retirement age in the US. They might be ready to harvest assets like real estate or they might be ready to move to a new location. What are the financial ramifications and can you offer fee-based planning? How about the business owners who have had their company turned upside down? Are there financial projects you are able to supply (for example The $5,000 financial make over, where you may supply planning and advice services) ?
You get the point that the more value that you could be to prospects and clients, the more insulated you are from economic uncertainty. But should you stick to one way of doing things-simply offering insurance, cash is slipping through your fingers. when so many services and products are undifferentiated, like the purchase of insurance, you should include other solutions to maintain value in the eyes of the client. So the more related services you present, the more important you become. For that reason, get a registered investment adviser certificate so it is possible to be the real adviser.
Straightforward steps to become an RIA:
1. Get hold of your state department of securities or other department that regulates RIAs
2. Get the application. Complete it and send it in with the fee.
3. In most states, you'll want to pass the series FINRA series 7 exam (you don't need a broker dealer and you won't be a FINRA licensee, you just need to take the exam). It's straightforward since all you do is take a crash program Monday to Friday after which take the exam and pass it on Saturday. You're then in the securities business. You may not know much about investing but neither do quite a few securities professionals.
4. To gain lots, of new clients use Brokerville for insurance agents