The Benefits of Buying a Financial Advisory Book of Business

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Despite the recent turmoil in the financial markets, becoming a financial advisor remains one of the most potentially lucrative and rewarding career choice an ambitious and motivated young professional can make.

As a financial advisor, your income possibility is unlimited, you have the ability to be in business for yourself, and you get the reward of knowing that you're helping your clients build their own financial security as you build yours.

Becoming a financial advisor isn't exactly easy, however the rewards that draw people into the profession usually aren't enjoyed right away. It can be a hard road, starting with passing your securities exams (such as the Series 7 and 66) which have only been made more difficult in response to the financial crisis of 2008.

Then there is the huge challenge of obtaining clients. Obviously, without clients, you won't make money. But convincing people to invest their trust -- and their savings -- in you as a green advisor is not always an easy task. Most investors, in particular high net worth individuals, prefer to go with someone with a long track record or who came recommended by a friend or business associate.

One method used with great success by financial advisors to surmount the challenge of building a customer base is buying a book of business from an existing advisor who is retiring or leaving the profession.

There are numerous advantages to doing this:

Immediate Income. When you have clients on the books, you immediately start generating income for your practice from those clients in the form of fees and commissions. Yes, there is a large financial outlay on your part to buy a book of business, and this must be done before any income is realized. However, there are numerous business financing options that can keep you cash flowing positive even after buying a book of business. If you play it smart, your income from your book of business will outpace the monthly expense of obtaining it.

Referral Base. The clients in your new book of business aren't only a great income source, they are a great source for spreading the word about your services to their own personal and professional networks. If you take care of them and make a great first impression, your name is likely to come up in a positive light when they have financial conversations with their friends and associates.

Reputation and Relationships. Chances are, the advisor whose book of business you're buying has a strong reputation in the industry. That's how he was able to build his client base. Aligning yourself with someone like that can do wonders for your own nascent reputation, and anytime you can build a relationship with an experienced and successful advisor, it is good for furthering your career.

If you are considering buying a financial advisory book of business, consider speaking to financial advisor recruiters in Scottsdale. Recruiters aren't only good for helping you find jobs, they can help you network with others in the business. Sitting down at a financial advisor recruiting firm Scottsdale and going over your desires, long-term goals, and budget will allow you to seek out the best prospects for buying a financial advisory book of business.

Rhino Search Group is a financial services recruiting firm known for its valuable client relationships with the most trusted financial brands. Contact our financial advisor recruiters if you are looking to make a move, or buy/sell a book of business. Visit the site: http://www.rhinosearchgroup.com/

What Are Your Options as an RIA?

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Registered Investment Advisors (RIAs) are among some of the top professionals in the finance field. What separates them from the rest of those in the industry is that they have to register with the SEC because they manage more than $25 million in assets.

Those managing smaller investments only have to register with the state securities authority. An RIA's investments will be scrutinized by a higher office and will have to adhere to more regulations, meaning that investors are better protected.

For those seeking to become RIAs there are many options. This is why contacting a financial advisor recruiting firm is a good way to find the right opportunity.

Moving Up or Over to Bigger Firms

When you have a client list you have power. That power is over your own destiny, and it is an amazing thing.

For RIAs who find themselves in situations that are untenable, they do not have to sit back and deal with the hassles that are causing them so much stress. This is because the relationships they have developed with their clients ensure the clients will want to stay with them even if they make a move.

For example, one of the most well-known investment advisors is Alex Ehrlich. Mr. Ehrlich is a great investor and also very generous with his time toward good causes (he is on the board of Portfolios With Purpose), and if he was to make a move to JP Morgan, Barclay's, or even a boutique firm, his clients would follow because they know that it's not the company he works for that makes them so much money, it's him.

Move to Leadership Roles Elsewhere

This understanding of business cycles, handling funds, and turning money into more money is the very reason that many investment professionals get recruited to companies in large and small cities around the world. A business leader from the investment world has a hand in most - if not all - areas of business through the allocation of raised capital. Most lucrative, important leadership roles in the industry are brokered through financial advisor recruiting firms to find the very best of the best.

Financial Advisors: When You're Thinking About Going Independent

You've passed your securities exams, honed your craft for a few years at a big firm, proven you can sell yourself to big clients and retain them once you have them on board, and now you're thinking about going independent and working for yourself.

To be certain, there are many benefits to going independent as a financial advisor. First and foremost, you are your own boss, meaning you set your own rules (provided they keep you within the parameters of the various regulatory agencies) rather than being constrained by the often recondite policies and procedures of big financial firms.

Not to mention that as an independent advisor, you have autonomy over your own compensation. You choose your fee or commission structure based on what you feel the market will bear given your individual circumstances and target clientele, whereas when you're an employee of a firm, they take the lion's share and you get whatever you can negotiate.

Finally, being independent means having a business over which you have ownership. When you work for someone else, all the business and all the clients you bring in ultimately belong to the firm, and when you decide it's time to retire or move on, the firm retains that business -- the fruits of your hard work. Being in business for yourself means your clients are yours. When the time comes to retire, you're free to sell your business for a nice nest egg or pass it on to one of your children.

Going independent as a financial advisor can grow your income, give you ownership of your own enterprise, untangle you from corporate red tape and get you out from under the thumb of a boss. But if it were easy, everyone would do it, and the big financial firms would be bereft of employees.

According to financial advisor recruiters Scottsdale, the big guys always have a robust queue of willing workers. The reason is that going independent is hard, hard work, although the payoff usually justifies it.

Here are some things to keep in mind if you are thinking about going independent.

You lose your boss, but also a large support system. Working as an employee can constrain your income and your day to day practice, but it also offers some benefits, such as having someone else do the marketing on your behalf and serve as an intermediary with the myriad of regulatory boards. When you're independent, that's all on you. That is why many advisors who branch out on their own elect to work independently but as part of a partnership rather than completely alone. You and your partners can bounce ideas off each other and keep each other accountable when it comes to sales, marketing, and compliance. A good financial advisor recruiting firm Scottsdale can help you find independent advisors looking for partners.

Your income is unlimited -- in both directions. When you work for yourself, you aren't limited in income to how much your firm wants to pay you. But you also lose that base salary, draw, or guarantee that most firms provide. Even though a good independent advisor will make a lot more in the long run, it can take months or even a few years to build your income to where it was when you were drawing a paycheck from a firm. Keep that in mind, and don't make the jump until you are financially secure enough to withstand a smaller paycheck for a little while.

Rhino Search Group is a financial services recruiting firm known for its valuable client relationships with the most trusted financial brands. Contact our financial advisor recruiters if you are looking to make a move, or buy/sell a book of business. Visit the site: http://www.rhinosearchgroup.com/