- On May 15, 2017
With Merrill Lynch and UBS removing themselves from the recruiting big boys table what are the best recruiting deals being offered to top advisors right now?
To get this out of the way, most advisors we work with don’t switch firms primarily based on dollars. However, the Financial Advisors we work with are indeed Financial Advisors and when Financial Advisors advise themselves, transition packages become an important factor. Some of these deals can be life changing both financially and personally for the advisor.
There are enough quality firms offering good to great packages that we recommend you first consider as options the well capitalized firms that not only want you but can also afford you. Almost all recruiting deals will have a forgivable loan component typically ranging from 3 to 7 years on the independent side and 9 years on corporate side.
For a corporate branch-to-branch move, Ameriprise, Morgan Stanley, and Wells Fargo still lead the industry in package size. Ameriprise for example can offer a 270% guaranteed deal, with 150% upfront, for the top 40% of advisors.
Regionals like Stifel, Baird and Oppenheimer are offering deals from 100% to 200% in cash and stock, with the upfront payment typically in all cash.
Independent Broker Dealers as a whole either doesn’t provide a transition package at all or caps it at 10% to 20%. The larger well-capitalized IBDs like Ameriprise are offering the most attractive indie transition packages on the street. A qualified million-dollar producer for example, can go independent with Ameriprise, get a 91% payout, and get about an 80% transition package with 50% upfront cash.
Other IBDs including VOYA, The Advisor Group, Cambridge, and more can typically offer 20% to 40% deals.
Advisors can utilize recruiting deals to make millions more over a career than the advisor that stays at the same wirehouse and retires.
Contact us if you’re open to discussing recruiting options and monetization strategies.
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