Selecting an Independent/Broker Dealer that’s Right for YouWritten by Michael Fisher
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Flexibility. Most consultants choose an independent broker/dealer to attain a greater level of autonomy for their business. You might contact representatives of broker/dealer you are considering to see if they allow for flexibility that gives consultants a meaningful level of independence. Take a close look at broker/dealer to determine if they provide responsive service, personalized attention and flexibility that allows consultants to build their own business brand. Product Selection. While it is not essential that your future broker/dealer offer an exhaustive list of investment vehicles, it is important that products you currently offer to your clients (or plan to offer in future) are available to you. Additionally, examine firm's product line to ensure it won’t compromise your autonomy. If there are incentives to sell proprietary products, you may want to look elsewhere. Technology Offerings. Ask about technical applications broker/dealer offers. You should consider not only what is offered, but also how quickly firm adapts to new technologies to meet marketplace needs. Also, find out what product support is provided and whether there are product specialists to turn to when needed. Payout Schedule. It is important to review a payout schedule for all investment products offered, but it may not tell whole picture. When considering broker/dealer offering highest payout levels, ask yourself what you may be sacrificing by partnering with them, and whether it is worth it in light of your business situation. Also, look at their “standard costs”, such as your ticket charges, and any other “hidden costs” to assess true compensation potential. Back Office Support. Research various types of support broker/dealer offers and examine how it will be delivered. Consider your access to various departments of broker/dealer and ease with which you could get help if a problem should arise. While it is recommended that you make a systematic assessment of your choices, don't forget to listen to what your instincts tell you. In reality, there is no "best" independent broker/dealer—but there are more appropriate choices based on your individual circumstances. As you make your decision, carefully consider individualized needs of your business and what broker/dealer offers to help you to meet them.
Michael Fisher is Executive Vice-President of 1st Discount Brokerage (1DB), an independent broker/dealer that caters to entrepreneurial financial consultants. For more information about becoming an Independent Financial Consultant with 1DB, direct your inquiry to mfisher@1db.com. You can explore the range of 1DB capabilities at www.1dbreps.com.
| | Fun with Credit CardsWritten by Terry Mitchell
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I take these subscriptions only for cards that I don't use, so it never costs me anything. What's better is that when I try to cancel it, they bribe me again to keep subscription active! The bribe is usually in form of rebate tickets of $10 to $25 per month for about six months. When I make a purchase that equals or exceeds face value of ticket, I send in receipt along with ticket and get a cash rebate about eight weeks later for face value of ticket. Then, when tickets run out and I attempt to cancel my subscription again, they offer me even more tickets to stay subscribed. Sometimes, I have tried to cancel before six months ran out and got even more tickets for same card in overlapping months! If you have several cards you don't use, each with one of these subscriptions, rebates could really add up! In addition to cards issued to me by credit card companies, I have several cards issued by store chains like Sears, JC Penney, Hecht's, etc. Most of store chains that issue credit cards will offer discounts of 10, 15, 20, or even 25 percent at various times for simply using those cards to make purchases at their stores. Some will even offer a bonus discount for just signing up (and being approved, of course) to take one of their cards! They can afford to do this because they know that most people will not pay off their balance each month, but will instead make minimum payment along with paying an ungodly amount of interest. The stores will more than make up for those discounts right there. Meanwhile, those of us who don't run monthly balances reap benefits of discounts that other people are paying for! What I have just described is not illegal, immoral, or unethical. Credit card companies and store chains are in business to make money and sometimes they'll offer things that don't seem to make sense in order to maintain and/or expand their customer base. Contrary to popular belief, credit card companies do indeed make money off people like me, who never pay a dime in interest or annual fees and take full advantage of all of their offers. The money comes from businesses that accept those cards by way of fees they pay each I time I use one of my cards. Those businesses, in turn, are willing to pay these fees in order to attract as many customers as they can. Therefore, everyone in credit card cycle benefits. Those who use credit cards way I do are just making sure they are getting their piece of pie.
Terry Mitchell is a software engineer, freelance writer, and trivia buff from Hopewell, VA. He also serves as a political columnist for American Daily and operates his own website - http://www.commenterry.com - on which he posts commentaries on various subjects such as politics, technology, religion, health and well-being, personal finance, and sports. His commentaries offer a unique point of view that is not often found in mainstream media.
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