Wealthcare Capital Management Provides Novel "Annuity" Payout For Its Affiliates

Monday, March 14, 2011 00:43
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Wealthcare Capital Management Provides Novel

Brilliant and completely undercovered idea: Virginia RIA Wealthcare Capital Management is letting its advisors convert their books into long-term income whenever they want to walk away.

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CEO David Loeper has a simple formula for helping affiliates plan for their own retirement: every $1 million that a book produces will translate into a $150,000 annuity.

 

Right now, the 20 advisors in the firm are managing about $350 million, which would indicate that as yet not many of them are going to retire early on a single year's production.

 

But this could be a viable recruiting tool for Wealthcare Capital to go after older advisors in particular who might be worried about selling their business down the road. 

 

Loeper wants to have 100 advisors in his network by 2020. With that in mind, he's going to have to create an entire ecosystem -- older advisors tempted by the annuity handing off their books to younger ones who'll stay in the business for at least a decade or so.

 

In a way this is really a way to harvest both seasoned advisors and their books. 

 

 

 

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