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Old 08-05-2015, 07:24 PM #1
Watermelondrea
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Making a portfolio...

Been working on a portfolio for the last couple months. 30-31 stocks that pay a monthly dividend each on a separate day of the month.

Problem is that I just graduated and do not have my Series 7 yet. Is there any way to legally sell it?

PS. I do work for a Broker/Dealer as an Analyst but I have worked on this solely in my free time and haven't told many people about it.
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Old 08-12-2015, 01:01 AM #2
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you might want to reconsider the entire theory behind your portfolio. consider long-term performance and diversification across different equity value styles and asset classes as criteria for your portfolio instead of simply the day of the month that each pays a dividend.

but legally, no, you cannot be compensated for the sale of securities nor advice concerning securities without your series 7/ 66 licenses.

for the record, i am a licensed and registered advisor.

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Old 08-16-2015, 02:29 PM #3
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If you work for an independent fee-only RIA you do not need your series 7 as you would be regulated by the SEC. I believe you would need to be a CFP, however. Check the rules of your state.

Not sure why people are so obsessed with dividends. It's built into the total return anyways. Doesn't make a difference if they mail you a check every month or you pull it from the portfolio.
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Old 08-16-2015, 03:50 PM #4
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Quote:
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If you work for an independent fee-only RIA you do not need your series 7 as you would be regulated by the SEC. I believe you would need to be a CFP, however. Check the rules of your state.

Not sure why people are so obsessed with dividends. It's built into the total return anyways. Doesn't make a difference if they mail you a check every month or you pull it from the portfolio.
good point, only the 66 or combination of 63 and 65 is required for fee-only business. but most broker/dealers still require series 7 prior to registration as an advisor (even if only conducting fee-only business) unless you have outstanding experience in the industry.

also, you're basically selling a portfolio of 30-31 random companies (not chosen for any compelling fundamental or technical reason). not to mention the fact that most people don't want huge dividends for their tax liability outisde of qualified accounts.

besides, if dividends are your only critera.. what difference does it make which day of the month they are paid? If you invest 100% of your assets in a company with a 2% div/yield versus 3% of your portfolio each in 30 different companies that pay a 2% div/yield, your portfolio's yield will be exactly the same.

bottom line, even if we ignore the flaws in your portfolio, nobody would pay money for it. and if you're going to be investing client money this way, you better be paying a large premium for E&O insurance.

try investing your own money in this portfolio, if you grow to become a hugely successful hedge fund using this theory then you'll prove everyone wrong!

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Old 08-16-2015, 05:34 PM #5
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good point, only the 66 or combination of 63 and 65 is required for fee-only business. but most broker/dealers still require series 7 prior to registration as an advisor (even if only conducting fee-only business) unless you have outstanding experience in the industry. also, you're basically selling a portfolio of 30-31 random companies (not chosen for any compelling fundamental or technical reason). not to mention the fact that most people don't want huge dividends for their tax liability outisde of qualified accounts. besides, if dividends are your only critera.. what difference does it make which day of the month they are paid? If you invest 100% of your assets in a company with a 2% div/yield versus 3% of your portfolio each in 30 different companies that pay a 2% div/yield, your portfolio's yield will be exactly the same. bottom line, even if we ignore the flaws in your portfolio, nobody would pay money for it. and if you're going to be investing client money this way, you better be paying a large premium for E&O insurance. try investing your own money in this portfolio, if you grow to become a hugely successful hedge fund using this theory then you'll prove everyone wrong!
When I worked for Morgan Stanley and Wells Fargo I actually had my 6,63, 7, and 66 (Long story), but the 7 and 66 obviously negated the 6 and 63.

I now work for a fee only RIA and let all my licenses lapse, including the 66. Because we do not accept commissions and our only compensation comes from our client, we do not need licenses to make us salespeople or brokers. We have limited power of attorney on our clients account to withdraw fees and make investment decisions, but don't sell any products. Our size (550 million AUM) makes us regulated by the SEC.

Ignoring the rationale behind your investment choices, your portfolio COULD be used as a large cap domestic position in a clients portfolio (assuming no REITs). However, I don't think it should be used for all of a clients money as the large cap domestic market (S&P) is only one portion of the total stock market.

We used to sell a similar portfolio at Wells Fargo and the selling point was due to the low interest rate environment it is tough to generate any income from bonds. We also used to talk about the idea that when baby boomers retire they are going to look for income and because bond int rates are so low they should be investing in blue chips and drive up the price etc etc. Whether or not that is true is a whole different story, haha. If that is your selling point on your portfolio I would argue that bonds should be in every clients portfolio for the simple reason that they don't act like stocks (investment grade/treasuries)and are a good buffer. Also the Fed is going to do everything possible to TRY and raise interest rates slowly, which will have less of an adverse effect on bond prices.
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Old 08-29-2015, 09:05 AM #6
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Some **** went down in the office this week (somewhat related to the market) and my boss is now giving me a deadline of November to take my 7.

brb quitting life
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Old 08-29-2015, 09:53 AM #7
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Haha!!! What study program are you using? I HIGHLY recommend Smart 7
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Old 08-29-2015, 01:22 PM #8
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Some **** went down in the office this week (somewhat related to the market) and my boss is now giving me a deadline of November to take my 7.

brb quitting life

That's very doable. I recommend TesTeachers online study program. I used them for my 7, 66, and life/health insurance licenses.

I spent 2 weeks studying for each and passed my first time (scored 85 & 82 on the 7 and 66 respectively). Life/health first, then 66, and finally 7. The online program has an outline that allows you to watch videos and take practice exams, and if you stick to their outline/schedule then you can finish it in 2 weeks.

But, I have a degree in finance and had been practicing a lot of the concepts on my own throughout college so it may take you longer, which is fine.

I recommend that you memorize a diagram to help with the options portion as that is where I have seen most people fail. Memorize something and then as soon as you sit down for the exam, re-draw it on your scratch paper and use that as a reference for the questions when they come up.

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Old 08-29-2015, 01:29 PM #9
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That's very doable. I recommend TesTeachers online study program. I used them for my 7, 66, and life/health insurance licenses. I spent 2 weeks studying for each and passed my first time (scored 85 & 82 on the 7 and 66 respectively). Life/health first, then 66, and finally 7. The online program has an outline that allows you to watch videos and take practice exams, and if you stick to their outline/schedule then you can finish it in 2 weeks. But, I have a degree in finance and had been practicing a lot of the concepts on my own throughout college so it may take you longer, which is fine. I recommend that you memorize a diagram to help with the options portion as that is where I have seen most people fail. Memorize something and then as soon as you sit down for the exam, re-draw it on your scratch paper and use that as a reference for the questions when they come up.
^^this is excellent advice. Take as many practice exams as possible. And test teachers is one of the better ones, too.
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Old 11-19-2015, 01:02 PM #10
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I'm using Testeachers.
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Old 11-19-2015, 02:11 PM #11
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Hows it going?
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Old 11-19-2015, 08:42 PM #12
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Not bad. The professor is somewhat bland, but really dumbs things down and uses great examples that help to make sense of a lot of the things I do on a day-to-day basis working in the industry. So it is kind of a win-win.
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Old 11-20-2015, 05:39 AM #13
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That's always helpful. Taking CFP courses right now...
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Old 11-20-2015, 10:21 AM #14
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That's always helpful. Taking CFP courses right now...
Which school are you using? I've been comparing the coursework and prices for a few different schools before actually pulling the trigger..
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Old 11-20-2015, 10:38 AM #15
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Bryant University
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Old 11-21-2015, 01:26 AM #16
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Bryant University
Looks to be the cheapest I can find, I imagine you're doing the self paced? That's what I'll be doing. If so, how is it?
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Old 11-21-2015, 09:27 AM #17
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Work paid for mine and I'm doing self paced. I think it was a few thousand dollars. I like it so far I have all the books and online study programs. I like it so far there's some harder concepts that you need to read a couple times before you grasp but the material does a good job explaining it.
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Old 11-22-2015, 12:58 PM #18
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Yeah work is going to reimburse me, but that wont be until after i actually get the designation. So I'd be out of pocket until I finished the courses, took the exam, and then fulfilled the experience requirement (1.5 more years for me).

With me not being able to actually get the title for another 1.5yrs, you think I should still go ahead and take the courses/exam and get it over with or might as well hold off for another year?
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Old 11-22-2015, 07:47 PM #19
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I would go ahead and just do it. Keep in mind the course takes about 1 year to complete.
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Old 11-22-2015, 07:48 PM #20
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Do you work for a large financial services firm or a boutique firm? Or none of the above? Just curious
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Old 11-22-2015, 10:01 PM #21
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Boutique. I'm independent, 90% fee based but I also do life insurance, annuities (primarily fixed), and loaded mutual funds occasionally.

Definitely prefer the independent route, although I do work with a few other advisors and the company's CEO has offered to reimburse for the CFP which is why I'm considering it. I certainly dont charge for financial plans or do anything like that.. but I'd like to add the expertise to my tool-belt for some of my larger clients (and perspective clients). Also, I am very young for our industry so I think it would add a bit of credibility.

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