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Why one Wells Fargo defector had no use for wirehouses, IBDs or the RIA model

David Lucas chose Raymond James for a supportive, collegial place to ply his commission-based trade

Author Brooke Southall April 1, 2011 at 2:00 PM
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David Lucas: They call it cross-selling, but it’s really pestering.

Rick Johnson

Rick Johnson

April 1, 2011 — 7:36 PM

Mr. Lucas I’m sure takes good care of his clients, but I’ve seen clients left for dead because a commission based broker did not want to help them unless there was a commission in it for them.

As an independent RIA, yes I get on ongoing fee, but clients can get their help with any and all aspects of their financial lives for that fee. How many commission brokers will help someone with the liability side of the balance sheet? Not many, I assure you.

What about retirement distribution planning? How is taking money out of accounts going to help a commission based broker? How committed to the client do you really believe that they will be in this scenario? CFP®'s like me, who are also independent RIA’s spend a lot of planning time working on the best retirement distribution planning solution for the client without slamming the client for an additional fee.

A commission based broker on the otherhand may try and sell a Single Premium Immediate Annuity as a retirement distribution plan. This way they can make another commission.

I for one do not believe in the commission based model. I’ll keep my RIA model. Thank you very much.

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Top Executive: Bill Van Law

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