Broker Dealer Suggestions

[just some f.e.llow]

Hey forum, need a hand here.
I'm diversifying from my core business and adding either a 6 or 7 license to my L and H.
Seems like I have to have a broker dealer?
I called my resident state(OH) doi and they couldn't tell me. Which is terrifying.

I want to sell variable annuities, and will also probably want to offer mutual funds (Fidelity and or Vanguard seem to get rave reviews) .

I'm super, super early in this process, but I seem to hit walls all over as I try to self-educate. Is a BD required for these products?

More importantly, who do you all suggest for a BD? Post, PM me, whatever works for you. I would like to make one small request: if you are going to suggest your own BD, or one which you work for, please also list a second suggestion as well. I Hope that's fair.

So, folks: What say you? Thanks for any feedback.

 

[GreenSky]

Get a series 7 and then do what many of us did after a few years. Drop it.

Rick

 

[senior-advisor-indiana]

Get a series 7 and then do what many of us did after a few years. Drop it.

Rick

I was wondering when you were going to drop your insurance license too...

 

[DHK]

I no longer hold securities licenses. A B/D is required to be licensed with a series 6 or 7 and to sell mutual funds and variable insurance contracts.

Most B/D's require some kind of proof of GDC production in order to be "independent". ("Independent" while being at a B/D is kind of a misnomer.) Otherwise, you'd need to join a firm as an employee or as a 'captive' agent.

As far as suggestions, I would consider Quest Capital. They've redesigned their website, but they used to state that they would take 'part-time' reps. I have no direct experience with them.

The other I would consider would be ONESCO - a division of Ohio National. I have no experience with them directly, but since you're in Ohio (a non-PPGA state), you'd have to be affiliated with a career agency to become contracted with them.

BTW, selling Fidelity or Vanguard funds generally are not "loaded" funds, which means you won't get paid commissions. If you want to be paid a fee for AUM (Assets Under Management), you'd need a Series 65 and affiliate with a Registered Investment Advisor.

 

[GreenSky]

I was wondering when you were going to drop your insurance license too...

Last year.

Rick

 

[just some f.e.llow]

I no longer hold securities licenses. A B/D is required to be licensed with a series 6 or 7 and to sell mutual funds and variable insurance contracts.

Most B/D's require some kind of proof of GDC production in order to be "independent". ("Independent" while being at a B/D is kind of a misnomer.) Otherwise, you'd need to join a firm as an employee or as a 'captive' agent.

As far as suggestions, I would consider Quest Capital. They've redesigned their website, but they used to state that they would take 'part-time' reps. I have no direct experience with them.

The other I would consider would be ONESCO - a division of Ohio National. I have no experience with them directly, but since you're in Ohio (a non-PPGA state), you'd have to be affiliated with a career agency to become contracted with them.

BTW, selling Fidelity or Vanguard funds generally are not "loaded" funds, which means you won't get paid commissions. If you want to be paid a fee for AUM (Assets Under Management), you'd need a Series 65 and affiliate with a Registered Investment Advisor.

Awesome. Thanks so much for the insight, DHK. Will check these sources out.

----------

Last year.

Rick

Hey! That's when I dropped mine too!
It's so much easier to cross sell Medicare without the whole"we can take your license" garbage hanging over my head, ya know. Now I can cross MA, commodities, write a will, and give a dialysis treatment in one meeting.

 

[KRobby]

(Fidelity and or Vanguard seem to get rave reviews)

Do you work for free or are you going fee based? Going fee based won't be diversifying your 'core business'. American and Franklin are a couple good ones where you'll get paid.

The link below will help if you don't have securities production, as mentioned earlier, many if not most will have minimums to be with them. Search the column for quotas and look for 0.

Production - Broker Dealer Data Scorecard | Financial Planning

 

[scagnt83]

Do you work for free or are you going fee based? Going fee based won't be diversifying your 'core business'. American and Franklin are a couple good ones where you'll get paid.

The link below will help if you don't have securities production, as mentioned earlier, many if not most will have minimums to be with them. Search the column for quotas and look for 0.

Production - Broker Dealer Data Scorecard | Financial Planning

How is going Fee based not diversifying? He is adding securities to his insurance business. And Fee based is securities. In fact, he can be a lot more diverse the Fee based route vs. the BD route, for both securities & insurance.

If someone is making their living on insurance and wants to gradually work in securities; they would be a fool to go the BD route over the RIA route.

 

[KRobby]

How is going Fee based not diversifying? He is adding securities to his insurance business. And Fee based is securities. In fact, he can be a lot more diverse the Fee based route vs. the BD route, for both securities & insurance.

If someone is making their living on insurance and wants to gradually work in securities; they would be a fool to go the BD route over the RIA route.

As long as he understands when you say 'gradually', sure, that's an option and technically would be diversifying.

Did you build a practice from start via RIA route (even if including insurance?)

Thought not.

 

[DWPCL]

As long as he understands when you say 'gradually', sure, that's an option and technically would be diversifying.

Did you build a practice from start via RIA route (even if including insurance?)

Thought not.

If I would have known about my options when I started my career I would have definitely gone the IAR/RIA route.

Heck I would have used the $3500 I spent on LEAP to pay my RIA set up fee's.