Getting Series 65 Good Idea or No?

jacobtn

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I am contemplating going for my 65. i am not currently securities licensed. The main advantages (for me) are being able to manage current clients securities who have insurance products with me but not their investments, and being able to manage older clients securities who annuities may not be suitable for.

Not to mention being able to move the assets without involving their current brokerage house (whether it's keeping them in the market or simply moving to eventually place into an annuity etc.), and then down the road being able to discuss annuities or life where suitable (for those that don't want to move out of securities).

My main concerns are having the SEC and the BD oversight that I don't have to deal with now. Is this a big deal or do they not care about the insurance products so much? Would like to add another tool without increasing my hassle if possible.
 
I am contemplating going for my 65. i am not currently securities licensed. The main advantages (for me) are being able to manage current clients securities who have insurance products with me but not their investments, and being able to manage older clients securities who annuities may not be suitable for.

Not to mention being able to move the assets without involving their current brokerage house (whether it's keeping them in the market or simply moving to eventually place into an annuity etc.), and then down the road being able to discuss annuities or life where suitable (for those that don't want to move out of securities).

My main concerns are having the SEC and the BD oversight that I don't have to deal with now. Is this a big deal or do they not care about the insurance products so much? Would like to add another tool without increasing my hassle if possible.

Some of the indy agents I work with advocate for and some against. Do you have a B/D that you know will take you without any business? If you are lucky to find one that will take you they will probably require you to run your indexed and possibly fixed business through them. Then you have your minimums that you must write or see ya later. If you are going to position yourself in the retirement sector where you are placing the a portion of the retirees money in a fixed/indexed annuity and another portion in managed accounts then you will position yourself quite nice. But while building that type of business you will be costing yourself additional e&o and brokerage fees that will hit you for a minimum of $3500 in addition to your fees your are paying now to be in the l&h business.

While I sell a little FE for the quick income, I am positioning my business model to do what I have stated above and if you are able to find a B/D that is not going to cost you out the yin yang and give you some freedom to write your own book without having to pass it through them please let me know. I truly believe in the long run this can turn out to be nice but then again, why are so many agents giving up their security licenses?
 
Edited

What DHK said about not needing a B/D if series 65 registered. Also under 35 million in assets you are regulated by your states securities dept and not the SEC and definatly not FINRA.
 
Edited

What DHK said about not needing a B/D if series 65 registered. Also under 35 million in assets you are regulated by your states securities dept and not the SEC and definatly not FINRA.

They recently increased the amount to $100M AUM. I have a RIA. It's not so bad working with the state regulator. In some ways they make it easier for small firms. The hardest part is preparing your first registration and ensuring your ADV 2 is correct. They pretty much leave you alone. In PA they even provide free seminars on how to remain compliant.

You may also look for an RIA that's willing to hire new IAR's. If you have a book that you can convert to planning clients, you are ahead of the game.

I going in the opposite direction. I started with my 65 and built my RIA while I was a Realtor. I just got my insurance license and placed my real estate license in escrow. What's similar is that I intend to use life insurance as a foothold and then convert clients to planning clients. I'm also using life and annuities to lower my account minimums. Right now my money manager has a $50k minimum. Insurance will bring that down further. That way, I can tap a market that the big boys ignore (<$250k), the middle income and blue collar. It's profitable because after the expenses (I controll) 100% of net is all mine. 100% of commissions, 100% of fees. For example if I charge 1% on a small 401(k) plan of $1M - $5M I get all $10-$50K minus expenses (Few and far in between). 1% on a $50k IRA rollover will be $500 a year in fees and growing with account. I just have to conduct annual reviews, send some happy holiday mailings, and try to up-sell to other planning products and/or life products. I have a tiered pricing system so that 1% was a simplified example.

So, sell a group life policy to a small company and up-sell to get the 401(k) business or the get the owner's wealth management business or both. Cha-Ching! If you build a big enough book the BD's look for you but who needs em and their 30bps if you're lucky?
 
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A really good friend of mine went this route and the one piece of advice that I know he would offer would be to go under another another RIA and save a few thousand hours of getting your own compliance set up.
 
A really good friend of mine went this route and the one piece of advice that I know he would offer would be to go under another another RIA and save a few thousand hours of getting your own compliance set up.

Also saves time and some headaches.
 
I apologize for the errors in my original post, I was looking at partnering with brookstone as the IAR. I am contracted with Tucker Advisory Group for my annuity contracts, and that is who they chose to partner with for their agents that are 65 licensed.
 
jacobtn said:
I apologize for the errors in my original post, I was looking at partnering with brookstone as the IAR. I am contracted with Tucker Advisory Group for my annuity contracts, and that is who they chose to partner with for their agents that are 65 licensed.

Series 65 is a world and away different compliance wise than the Series 6 or 7. If you want to do it then go for it.
 
I have mine and run some advisory business. At one time I had every license under the sun and now I can tell you that the best thing that ever happened was letting them go. I too would recommend going under another RIA. Far less hassle.
 
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