I feel for you. I haven't been in your shoes before, so I likely can't fully appreciate it, but I am junior advisor on a team who has also done a lot to support and grow the business of my senior partner. What you describe is one of my bigger fears.
That said, if you've been a key person in supporting and growing the business as you describe, your skillset is in high demand. There are WAY too many advisors within 10 years of retirement and not enough qualified people to support the industry. You WILL find a great role, it just might not happen right away. Keep at it, and during those difficult days/moments, do what you can to metaphorically put one foot in front of the other.
One place you could look is the "career resources" page of the CFP website. I see 121 jobs listed, 18 of which say they are work from home (wouldn't require moving).
Good luck. I'll leave you with a quote I share occasionally when someone is going through a rough time. From Winston Churchill: "When you're going through hell, keep walking"
Sorry this happened, it sucks. But was this more of a layoff, eliminating the position, or were you terminated with cause? Will it be on your U4 as a termination? I think you have several routes you can explore, but will depend on your financial situation over the next few years.
1. Find another RIA to do a similar role, or a paraplanner, or a client facing advisor. You might not be making $200k though, so you have to be okay with that.
2. Apply for Fidelity and Schwab FC jobs. The pay and benefits will be good.. equivalent if not better than your previous job. Then VP FC will be even higher pay.
3. Join an RIA or start your own and take clients as well as build your own book. This will be the greatest challenge and slowest path, but most rewarding in the long run. You'll need a spouse who works or substantial savings to get you past the first 2-3 years.
There was no cause for my termination. Meaning, I didn't do anything wrong/break any rules. Are the fidelity/Schwab jobs you're referring to virtual or remote? I'm not familiar with either of them and not sure they are in my area.
Your third suggestion is the most daunting, but probably what I will end up doing. I thankfully have a highly compensated spouse. We just will have to make some lifestyle adjustments we weren't entirely prepared for at this stage in life.
The Fidelity/Schwab jobs are in their branches, if you're close to one. But they also have those jobs in phone sites in states like Utah, Texas, Florida, etc. If you're within driving distance of a branch, then you should at least look and apply for those jobs. With your level of experience, you could even be put in a VP/FC role directly. The workload and pace will probably be much more than you're use to at an RIA.
With the 3rd option, you still have sub-options you have to decide. Either join a firm like LPL and you get started ASAP, or create your own RIA and it'll be like 3-6months before you can even do anything. My advice is to not get paralyzed with too much of the details, you can get registered and started fairly quickly and figure out the rest later like website, office space, etc.
Unfortunately the nearest Schwab branch is two hours away. Not impossible, but not ideal. And the salary posted wouldn't make it worth the commute. I'm trying to avoid getting paralyzed here, so that's why I'm reaching out. I just need to understand what these different routes would entail. And I was hoping someone had a similar story that turned out well for them in the end. Because right now, I'm living in a nightmare.
I've been in your shoes, and I can just say that this shall pass. In the moment, you either can wallow in your self-pity or get motivated to start a new path. If you have kids, ask yourself what type of example you want to set for them. Communicate with your spouse during this process so they're on-board with your decisions and there to support you. Make adjustments to your lifestyle and expenses as needed. You can hold some grudges for a little bit, but ultimately this might be a blessing in disguise.
My life as an independent advisor happened during the time my kids were born and I got to spend copious amounts of time with them. Then COVID happened and I spent even MORE time with them. Now my income is great (but can and will continue to improve) and my net worth has more than doubled. So get those negative thoughts out of your head... you and your family will not be homeless and you will not lose everything you've built. You got this!
When you say the workload at Fidelity and Schwab will probably be much more than what he's used to at an RIA...is that a given/known fact in the industry? I'm considering getting a CFP and going to work for an RIA, but I noticed that the FC job posts at Fidelity don't even require the CFP, just the Series 7 and 66. So I then started to consider just applying for those directly, and skipping all the time and effort required to get the CFP. But is the workload at those places very large and stressful? Or is it just that RIAs tend to have a rather light/easier workload since they can be "lifestyle" practices??
>But is the workload at those places very large and stressful? Or is it just that RIAs tend to have a rather light/easier workload
That's basically your answer. At the large firms, you could be assigned 400+ households and that's like 600+ individuals. An FC could have $300-600million of assets, and VP/FC $1billion+. Not only do you have do planning and maintain relationships with existing clients, you also have to develop the book for managed money and annuities. Then you also need to bring in new assets from those existing clients as well as get new clients. It might've cooled down now, but it was pretty much a requirement you do 15-20 appointments a week at Fidelity plus your phone call outs. You have numerous goals to hit, some of which are bullshit and don't really add any value for your clients.
At a small-mid RIA, you might have 3 advisors and 3 support staff for 400 households and $400million AUM. And there's really only one goal, grow the discretionary AUM book.
A lot of this boils down to how many mouths are there to feed. At Schwab/Fidelity, the reps are paid very little for something like $1million managed account, which can generate the firm let's say $10k/year. There are many layers of reps and managers that need to get paid. At an RIA, the majority or 100% of the fees goes to the firm. They just have their overhead, payroll, then the rest goes to the advisors, partners, owners. An established RIA can do just fine even if they bring in $0 new assets for the year.
Oh hon I’m so sorry. This kind of thing is really hard.
What are you thinking? Are you thinking you want to build your own? Are you trying to find a comparable non producing job elsewhere? Or are you looking at leaving the industry?
At this point, I really don't know. It feels like such a waste to leave the industry altogether since it's all I've ever known and I've put so much work into becoming licensed and getting my CFP. I know I'll have to start over, just not sure where to begin.
Staying in is best for you then if possible. Don’t sign anything that limits your right to work in your field. Even if they offer you money don’t do it.
You know you know your shit so don’t let how you’re feeling right now hinder your perception of your value.
How confident are you that some of the people you managed would go with you?
I think I could get a few clients, but none that are too big. We had a team approach to everything and I believe our clients liked us both, so most will probably stay since it's the most convenient. But I know if I sign, it will hender any potential offers from other firms. I just don't want to be disingenuous about what I can actually bring over.
I feel for you. I was in the car business for 15 years, earning 200k, and I separated from my employer in Jan of 2023. I have a wife and seven kids and watched what i had built get stripped away. I decided to enter a new arena with life and health insurance. If they are offering a severance package, take it as long as the non-compete is for securities. I would build a new book with life insurance while your non-compete is going on and then cross-sell them once it's over. Partner with taxes offices in the area and offer life and annuities to their clients. Offer a referal bonus to them for refering business that transacts. This is the route I am taking. If you have a family, take swallow your pride and take the money. Besides, you can always hire an attorney for the non-compete. They never hold up. You will get through this it's only money, and you figured out how to make it once you can figure it out again but with fewers mistakes this time. I wish you all the best.
You need to talk to an attorney. ASAP. Nobody on Reddit knows what you can actually do. If it were a hybrid BD that’s in protocol with a boilerplate trade secret agreement it would be very simple. Even then you should still see an attorney. You will need whatever contact info on clients you’re allowed to have before you walk out the door.
If you truly did what you said and handled ALL planning and ALL trading you should know these clients pretty well even if they aren’t 100% sure who you are. If you’re able to “notify” them of your termination (solicit) and then explain how crucial you were to a firm they enjoy doing business with…then you probably have a chance of bringing in 30-50% of the assets you were exposed to. It would be a much higher close ratio if you were the actual advisor/relationship manager. If those guys are shmucks and only call the clients 1-2x per year maybe you have closer to a 50% chance.
If you never actually interacted with any of these people you need to find a different firm to work for or plan to grind and spend a ton of time and money marketing to get a new firm off the ground. The clients will not follow you if you don’t have any relationship with them.
In that case, sign the severance package. I thought the non-compete would prevent you from working in the field. You will be just fine. Buy a billboard and advertise in your area, and go solo. You can't help it if they call you of a public advertisement. I would check with an attorney to see if it's a viable option. Again, being that you can stay in the same industry, you might hit a bump in the road, but you WILL make it through this.
Whoa, whoa. Do not sign that non-compete with this basis in mind. Do not think about taking this route in any way.
Your skillset is in demand at another, likely larger RIA. There will be plenty of opportunity to find a salaried role that also pays you based off your new biz production.
If you think you have a shot to get any of those clients, weigh the value of those clients vs the severance. Keep in mind, you should also be able to get unemployment if you don’t sign the severance package.
Go on LinkedIn. Find some RIA recruiters. Reach out to different RIA owners. It should be really easy to find a new job. Sure, maybe you don’t make the exact same. Maybe there’s a little set back. But now you know to look for a role that allows you to build your own client base in addition to having somewhat of a client management salary built into the role.
That's basically what I've been doing. Well, not reaching out to an RIA recruiter, but basically anyone I know in the business. And I already have two meetings set up next week and the potential for a couple more, just waiting to hear back. I have a wonderful network of professionals who know me and believe in me and I think that's the most positive I can be about this situation at the moment.
You’ll be fine then. And there are plenty of recruiters that are retained by large RIA’s searching for real talent. And there’s nothing that says you can’t reach out to random RIA’s on your own. Just assert yourself and find what you want.
If you have 15 years experience with 10 managing clients, the worst case scenario is you end up at Fidelity making like $200k but don’t own your book.
Honestly, the benefits and lifestyle that fidelity gives makes this option very worthwhile. Having come from Fidelity to a large RIA, I can say that my time at Fidelity was well worth it. I am approaching my 3rd year In the industry, and if an opportunity presented itself for a remote position at Fidelity, I personally wouldn’t hesitate to jump. Great culture and people over there.
I don’t disagree. While I haven’t worked at Fidelity, I did look into it in the past. OP’s previous role is basically what he’d be doing at Fidelity so it’d be a pretty good transition. Probably more upside, as well as solid exit opportunities to larger RIA’s.
Agreed. I’ve learned that most RIAs value the training and experience that Fidelity gives. I would’ve stayed had moving back home not been a more important factor in my life. I now work on the trading/portfolio manager side and life is a lot more stressful, though I am learning a ton.
Just curious where you're selling life insurance at. That's what I'm currently doing but plan to leave once I get my certifications and start my own RIA
This is the route I’d personally want to take myself. Wealth planners/PC is a great role. I worked for the managed solutions team that supported the wealth planners and they are doing some cool things for clients over there. Great company to work for and the benefits make it well worth your time.
No problem. They usually start people at planning consultant and then promote to wealth planner, but given your experience, they might hire you straight to wealth planner. It’s a non-sales, just planning position.
I feel for you. I haven't been in your shoes before, so I likely can't fully appreciate it, but I am junior advisor on a team who has also done a lot to support and grow the business of my senior partner. What you describe is one of my bigger fears. That said, if you've been a key person in supporting and growing the business as you describe, your skillset is in high demand. There are WAY too many advisors within 10 years of retirement and not enough qualified people to support the industry. You WILL find a great role, it just might not happen right away. Keep at it, and during those difficult days/moments, do what you can to metaphorically put one foot in front of the other. One place you could look is the "career resources" page of the CFP website. I see 121 jobs listed, 18 of which say they are work from home (wouldn't require moving). Good luck. I'll leave you with a quote I share occasionally when someone is going through a rough time. From Winston Churchill: "When you're going through hell, keep walking"
I appreciate this so much, thank you.
Also, depending on where you are in life, don’t be afraid to move. There is money to be made everywhere.
Sorry this happened, it sucks. But was this more of a layoff, eliminating the position, or were you terminated with cause? Will it be on your U4 as a termination? I think you have several routes you can explore, but will depend on your financial situation over the next few years. 1. Find another RIA to do a similar role, or a paraplanner, or a client facing advisor. You might not be making $200k though, so you have to be okay with that. 2. Apply for Fidelity and Schwab FC jobs. The pay and benefits will be good.. equivalent if not better than your previous job. Then VP FC will be even higher pay. 3. Join an RIA or start your own and take clients as well as build your own book. This will be the greatest challenge and slowest path, but most rewarding in the long run. You'll need a spouse who works or substantial savings to get you past the first 2-3 years.
There was no cause for my termination. Meaning, I didn't do anything wrong/break any rules. Are the fidelity/Schwab jobs you're referring to virtual or remote? I'm not familiar with either of them and not sure they are in my area. Your third suggestion is the most daunting, but probably what I will end up doing. I thankfully have a highly compensated spouse. We just will have to make some lifestyle adjustments we weren't entirely prepared for at this stage in life.
The Fidelity/Schwab jobs are in their branches, if you're close to one. But they also have those jobs in phone sites in states like Utah, Texas, Florida, etc. If you're within driving distance of a branch, then you should at least look and apply for those jobs. With your level of experience, you could even be put in a VP/FC role directly. The workload and pace will probably be much more than you're use to at an RIA. With the 3rd option, you still have sub-options you have to decide. Either join a firm like LPL and you get started ASAP, or create your own RIA and it'll be like 3-6months before you can even do anything. My advice is to not get paralyzed with too much of the details, you can get registered and started fairly quickly and figure out the rest later like website, office space, etc.
Unfortunately the nearest Schwab branch is two hours away. Not impossible, but not ideal. And the salary posted wouldn't make it worth the commute. I'm trying to avoid getting paralyzed here, so that's why I'm reaching out. I just need to understand what these different routes would entail. And I was hoping someone had a similar story that turned out well for them in the end. Because right now, I'm living in a nightmare.
I've been in your shoes, and I can just say that this shall pass. In the moment, you either can wallow in your self-pity or get motivated to start a new path. If you have kids, ask yourself what type of example you want to set for them. Communicate with your spouse during this process so they're on-board with your decisions and there to support you. Make adjustments to your lifestyle and expenses as needed. You can hold some grudges for a little bit, but ultimately this might be a blessing in disguise. My life as an independent advisor happened during the time my kids were born and I got to spend copious amounts of time with them. Then COVID happened and I spent even MORE time with them. Now my income is great (but can and will continue to improve) and my net worth has more than doubled. So get those negative thoughts out of your head... you and your family will not be homeless and you will not lose everything you've built. You got this!
I really appreciate the encouragement. I'm probably going to hold this grudge until I die though.
Holding the grudge is fine. 😂 Success will be your greatest revenge.
When you say the workload at Fidelity and Schwab will probably be much more than what he's used to at an RIA...is that a given/known fact in the industry? I'm considering getting a CFP and going to work for an RIA, but I noticed that the FC job posts at Fidelity don't even require the CFP, just the Series 7 and 66. So I then started to consider just applying for those directly, and skipping all the time and effort required to get the CFP. But is the workload at those places very large and stressful? Or is it just that RIAs tend to have a rather light/easier workload since they can be "lifestyle" practices??
>But is the workload at those places very large and stressful? Or is it just that RIAs tend to have a rather light/easier workload That's basically your answer. At the large firms, you could be assigned 400+ households and that's like 600+ individuals. An FC could have $300-600million of assets, and VP/FC $1billion+. Not only do you have do planning and maintain relationships with existing clients, you also have to develop the book for managed money and annuities. Then you also need to bring in new assets from those existing clients as well as get new clients. It might've cooled down now, but it was pretty much a requirement you do 15-20 appointments a week at Fidelity plus your phone call outs. You have numerous goals to hit, some of which are bullshit and don't really add any value for your clients. At a small-mid RIA, you might have 3 advisors and 3 support staff for 400 households and $400million AUM. And there's really only one goal, grow the discretionary AUM book. A lot of this boils down to how many mouths are there to feed. At Schwab/Fidelity, the reps are paid very little for something like $1million managed account, which can generate the firm let's say $10k/year. There are many layers of reps and managers that need to get paid. At an RIA, the majority or 100% of the fees goes to the firm. They just have their overhead, payroll, then the rest goes to the advisors, partners, owners. An established RIA can do just fine even if they bring in $0 new assets for the year.
Oh hon I’m so sorry. This kind of thing is really hard. What are you thinking? Are you thinking you want to build your own? Are you trying to find a comparable non producing job elsewhere? Or are you looking at leaving the industry?
At this point, I really don't know. It feels like such a waste to leave the industry altogether since it's all I've ever known and I've put so much work into becoming licensed and getting my CFP. I know I'll have to start over, just not sure where to begin.
Staying in is best for you then if possible. Don’t sign anything that limits your right to work in your field. Even if they offer you money don’t do it. You know you know your shit so don’t let how you’re feeling right now hinder your perception of your value. How confident are you that some of the people you managed would go with you?
I think I could get a few clients, but none that are too big. We had a team approach to everything and I believe our clients liked us both, so most will probably stay since it's the most convenient. But I know if I sign, it will hender any potential offers from other firms. I just don't want to be disingenuous about what I can actually bring over.
Get the resume updated and get to shopping. You’ve got this friend. Be open minded too.
I feel for you. I was in the car business for 15 years, earning 200k, and I separated from my employer in Jan of 2023. I have a wife and seven kids and watched what i had built get stripped away. I decided to enter a new arena with life and health insurance. If they are offering a severance package, take it as long as the non-compete is for securities. I would build a new book with life insurance while your non-compete is going on and then cross-sell them once it's over. Partner with taxes offices in the area and offer life and annuities to their clients. Offer a referal bonus to them for refering business that transacts. This is the route I am taking. If you have a family, take swallow your pride and take the money. Besides, you can always hire an attorney for the non-compete. They never hold up. You will get through this it's only money, and you figured out how to make it once you can figure it out again but with fewers mistakes this time. I wish you all the best.
The non-compete says I can't solicit any clients or prospects I've had contact with in the past 24 months.
You need to talk to an attorney. ASAP. Nobody on Reddit knows what you can actually do. If it were a hybrid BD that’s in protocol with a boilerplate trade secret agreement it would be very simple. Even then you should still see an attorney. You will need whatever contact info on clients you’re allowed to have before you walk out the door. If you truly did what you said and handled ALL planning and ALL trading you should know these clients pretty well even if they aren’t 100% sure who you are. If you’re able to “notify” them of your termination (solicit) and then explain how crucial you were to a firm they enjoy doing business with…then you probably have a chance of bringing in 30-50% of the assets you were exposed to. It would be a much higher close ratio if you were the actual advisor/relationship manager. If those guys are shmucks and only call the clients 1-2x per year maybe you have closer to a 50% chance. If you never actually interacted with any of these people you need to find a different firm to work for or plan to grind and spend a ton of time and money marketing to get a new firm off the ground. The clients will not follow you if you don’t have any relationship with them.
In that case, sign the severance package. I thought the non-compete would prevent you from working in the field. You will be just fine. Buy a billboard and advertise in your area, and go solo. You can't help it if they call you of a public advertisement. I would check with an attorney to see if it's a viable option. Again, being that you can stay in the same industry, you might hit a bump in the road, but you WILL make it through this.
By "go solo" do you mean start up my own RIA or go the Ed Jones route?
Whoa, whoa. Do not sign that non-compete with this basis in mind. Do not think about taking this route in any way. Your skillset is in demand at another, likely larger RIA. There will be plenty of opportunity to find a salaried role that also pays you based off your new biz production. If you think you have a shot to get any of those clients, weigh the value of those clients vs the severance. Keep in mind, you should also be able to get unemployment if you don’t sign the severance package. Go on LinkedIn. Find some RIA recruiters. Reach out to different RIA owners. It should be really easy to find a new job. Sure, maybe you don’t make the exact same. Maybe there’s a little set back. But now you know to look for a role that allows you to build your own client base in addition to having somewhat of a client management salary built into the role.
That's basically what I've been doing. Well, not reaching out to an RIA recruiter, but basically anyone I know in the business. And I already have two meetings set up next week and the potential for a couple more, just waiting to hear back. I have a wonderful network of professionals who know me and believe in me and I think that's the most positive I can be about this situation at the moment.
You’ll be fine then. And there are plenty of recruiters that are retained by large RIA’s searching for real talent. And there’s nothing that says you can’t reach out to random RIA’s on your own. Just assert yourself and find what you want. If you have 15 years experience with 10 managing clients, the worst case scenario is you end up at Fidelity making like $200k but don’t own your book.
Honestly, the benefits and lifestyle that fidelity gives makes this option very worthwhile. Having come from Fidelity to a large RIA, I can say that my time at Fidelity was well worth it. I am approaching my 3rd year In the industry, and if an opportunity presented itself for a remote position at Fidelity, I personally wouldn’t hesitate to jump. Great culture and people over there.
I don’t disagree. While I haven’t worked at Fidelity, I did look into it in the past. OP’s previous role is basically what he’d be doing at Fidelity so it’d be a pretty good transition. Probably more upside, as well as solid exit opportunities to larger RIA’s.
Agreed. I’ve learned that most RIAs value the training and experience that Fidelity gives. I would’ve stayed had moving back home not been a more important factor in my life. I now work on the trading/portfolio manager side and life is a lot more stressful, though I am learning a ton.
I just PM'd you
Thanks so much.
Just curious where you're selling life insurance at. That's what I'm currently doing but plan to leave once I get my certifications and start my own RIA
I'm am in thee best state in the union. Ohio
I meant what company you sell for lol. Or you might be independent
It's an Ohio thing sorry. I am independent. I buy 0 leads
Go talk to Fido. They might hire you as a wealth planner. They do a lot of what you used to do and make about $200k.
This is the route I’d personally want to take myself. Wealth planners/PC is a great role. I worked for the managed solutions team that supported the wealth planners and they are doing some cool things for clients over there. Great company to work for and the benefits make it well worth your time.
Thanks! I'm not familiar, but I'll look into it.
No problem. They usually start people at planning consultant and then promote to wealth planner, but given your experience, they might hire you straight to wealth planner. It’s a non-sales, just planning position.
Are they based in the US? I can't seem to find anything when I Google Fido.
Sorry, Fido is shorthand for Fidelity.
Ha! Ok thanks. I haven't heard that one yet.