Selecting an Independent/Broker Dealer that’s Right for YouWritten by Michael Fisher
For financial consultants, picking right independent broker/dealer for affiliation is one of most important decisions they can make to benefit their business. While right broker/dealer can provide effective support for your business and lead to greater success, wrong firm can actually hamper your efforts. Ensuring that your future broker/dealer becomes your partner and is appropriate one for you requires both an internal analysis of your business and thorough marketplace research. The most suitable broker/dealer is one who not only provides levels of service and compensation you require, but does so within a firm culture that meshes well with your personality and mission of your financial business.To determine which broker/dealer is best for your business, it is recommended that you evaluate broker/dealers based on pre-determined criteria. In order to make a sound decision you will need to take a hard look at specifics. You will want to look over marketing materials, speak to financial consultants of firm that you are considering, and even visit broker/dealer’s headquarters. If it is feasible, you might consider talking to their clearing firm or even some financial consultants to get a complete perspective. As you evaluate each broker/dealer, you will want to consider following: Corporate Culture. First, and perhaps foremost, have a discussion with several individuals associated with broker/dealer to determine if they will be a good fit for you and your business. This includes looking at vision and reputation of broker/dealer’s management, experience and background of support staff and goals and targets of other consultants in firm. Consider size of firm and their modus operandi to determine whether you will become just another number or a bona fide business partner. Finally, take a look at company as a whole. Is their main objective to support your business, or work for their own success? Compliance. Arguably, most essential service a broker/dealer offers is compliance. In an environment where compliance requirements change frequently, financial consultants require expert assistance to help them stay right course. To ensure that your broker/dealer will offer support you need, ask about experience, training and responsiveness of compliance team. Clearing firm. Look for a broker/dealer backed by a substantial clearing firm with an excellent reputation for providing solid service. Research firm to ensure that it is a name that is trusted in industry and has resources to provide first-class support service.
| | Fun with Credit CardsWritten by Terry Mitchell
For those of us who know how to use them properly, credit cards can actually be quite fun and lucrative. To those who do not know how to use them properly, I would say that you should stop reading this column right about now, or at least I would advise you not to try any of this stuff at home. What I'm about to describe is not one of those illegal credit card schemes. Instead, I'm talking about taking full advantage of benefits and offers that credit card companies and store chains offer their customers all time. I get several credit card offers each month, but I only accept those that come with no annual fee and pay me at least one percent cash back or credit on my purchases. I don't care about interest rate. It could be some exorbitant rate like 50% for all I care, since I never carry a balance and always pay off what I owe at end of each month. Right now, I probably have about 15 different cards, but I only regularly use three of them. I have one card that gives me an instant five percent credit on my gasoline purchases. Therefore, I buy all of my gasoline with this card and never use cash to buy it. I have another card that gives me five percent cash back on any purchase I make at a drug store or grocery store. Needless to say, I try to use that card exclusively at those establishments. The third card I regularly use gives me a one percent instant credit on all purchases. I use it for just about everything except purchases of gasoline or purchases at drug stores or grocery stores. The more I use my cards more credits and cash back I get. The credit card companies are, in effect, paying me to use their cards and I am more than happy to oblige. Some credit card companies will take things one step further and even pay you to take their cards. These payments will take form of gift certificates, bonus cash back, and/or bonus credits. There is one minor catch in that most companies will generally require that you use cards at least once each to get those benefits. That's never a problem for me as I will use them once to get benefits and then toss them into my "inactive" drawer. Having lots of credit cards means I get lots of offers in mail (and sometimes by phone) from credit card companies in which I am asked to try out some kind of worthless subscription for 30 days. Most of time, I just throw these offers in trash can. However, there are some that I will try because they will "bribe" me adequately to do so. However, they must offer me at least $10 and offer must have a free trial period. I will then cash their check, put money in my pocket, and cancel before free trial period ends. However, I have found that I need to be careful with these offers. Sometimes they'll offer me $10 to try something that costs $10 (or more) per month, with no free trial period. I avoid those like plague, since best I can do is break even. Speaking of worthless subscription offers, most credit card companies will push some kind of credit card insurance. The way it works that you pay about half of one percent of your monthly purchase totals so that this insurance will make your minimum monthly payment in case your are disabled, laid off, have a death in family, or suffer some other kind of qualifying malady. This insurance may be a good idea for those who run a monthly balance and only make minimum payment, but it's worthless to those of us who pay off our balances each month. However, credit card companies will never acknowledge this fact and will pay you to try it and will usually give you a free trial period.
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