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I was curious about the pros and cons of going with a Broker Dealer or just going independent with a 65?
Yep, a consideration for sureHow much are you willing to let a B/D control your insurance business, marketing, and other activities?
It depends on how much AUM you want and what type of assets you will be invested in. When you are independent you still have to custody assets somewhere unless you just prepare financial plans and give list of recommendations for clients to follow. I would never want to work for a BD because I would be under FINRA. If you are a state registered RIA, you can manage up to 100 million, over that you have to register SEC. Some folks say SEC is worse than FINRA, I think they are equally inefficient.
If you are independent, you are your own Chief Compliance Officer. Can you handle that? Now as an independent I cant sell A shares or collect 12b1 fees, however, I can sell F shares and collect a fee. There are more and more choices for RIA's for fee driven VA's, but the choice on the BD side is much more right now.
When you retire your business will be worth more to sell if you are independent. BD has to approve who will take over your business. If you just starting out collecting AUM, I would build a business of about 10 to 15 million AUM A shares with a BD and then start your own RIA. If you build it with American funds, you can switch it all to F shares when you leave. If you plan to go independent, don't sell BD's own funds.
If you start on your own, I think it is very hard to make the math work without other income. If you get 1 million AUM a quarter and charge 1%, you will make 20K in your 1st year before expenses.
What companies offer fee based VA's? I haven't seen them (or looked into it)
I am fortunate in that my BD is owned by the largest independent insurance broker in the country. The support I get from my BD is phenomenal. Since they are tied in with the insurance broker, I have full access to the specialists there. My costs are almost 50% less than what I was paying at my previous BD. I learned after I left they were marking-up the E&0 coverage to the tune of $100/month.How much are you willing to let a B/D control your insurance business, marketing, and other activities?