Bob is a 65-year-old adviser at Random American Bank. He has worked hard to build a $150 million book throwing off $1.5 million in revenue. Over the last 37 years, he has seen a lot of economic ups and downs. There have been good times, and some bad ones too. In fact, a few times he thought he would have to exit the business.

Bob knows, all too well, that being a financial adviser is not for the faint of heart. There are risks that his salaried banker friends just don't share. First, it means working on 100% commission. Secondly, you are an employee at will (usually) and can be fired at any time for just about any reason. Third, you have a tremendous amount of compliance and potential litigation risk. An adviser can also lose his or her licenses at any time for various reasons. In times of trouble, most banks will be happy to let the adviser take the fall to save themselves. Banks sometimes settle bogus legal cases in order not to risk a potential large financial loss. This sometimes means the adviser gets barred from the industry, or at the least fired and severely scared on their public FINRA record. Finally, there are economic and market risks.

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