Your RetirementChoice Planning Calculator (RJA affiliates only)
Your Loan Valuation is the static one-time payment amount that Raymond James will lend your buyer, as a Raymond James advisor, to purchase your firm.
Accessing your RJA Loan Valuation
To access the RetirementChoice Planning Calculator, go to your dashboard page and look for the RetirementChoice Planning Calculator section, located in the right panel. Click “See Your Planning Calculator” at the bottom of this section.
Your Loan Valuation breakdown
Raymond James calculates your loan valuation based on your three year average T12 (average annual 3-year gross revenue), percentage of your recurring revenue to your non-recurring revenue and your length of service with Raymond James.
Your loan valuation amount is based on pre-supplied data, so it is a static amount and will not change based on the values you input in the RetirementChoice Planning Calculator.
Using the RetirementChoice Planning Calculator as a retiring FA
Scroll towards the bottom of the Loan Valuation page and you will see the RetirementChoice Planning Calculator. In this section, under “Retiring FA Assumptions”, you’ll notice the “Asset Attrition at Retirement” and “RFA Annual Asset Appreciation (Depreciation)” assumptions are defaulted to 0. You can update these values to reflect the estimates for your firm.
Your asset attrition is the percentage of clients predicted to leave your practice once you retire; meaning, they will likely not transition over when you sell your firm. Your annual asset appreciation or depreciation is the growth or depreciation rate, dependent on new business or business loss comparable to the previous year.
The benefit of the RetirementChoice Planning Calculator is that it allows you to mimic different scenarios. For example, you can provide the Successor FA Assumptions (the details of the advisor buying your book), to assist you in determining the ideal prospect for your practice.
Your one-time payment amount can be seen by scrolling towards the bottom of the page.
Click "View Details" to see the breakdown.
You can also adjust the assumptions to determine the impact on your one-time payment if you stay in the business for additional years. This can be done by changing the T12 values.
Using the RetirementChoice Planning Calculator as a successor
As someone looking to acquire a firm, the RetirementChoice Planning Calculator will help you calculate how much you can expect to gain after you repay the loan — your net payout. To do this, you will need to know the T12 value, asset attrition rate and appreciation/depreciation rate of the firm you’re looking to acquire.
Input your data in the Successor FA Assumptions and the data of the advisor’s practice you’re looking to acquire in the left Retiring FA Assumptions column.
Scroll down to the Continuing Participation Payments and click "View Details".
In addition to your loan repayment schedule you will find your Net Successor FA Payout details in the last line of the first table.
Education
You can find Raymond James’ financing terms on the left-side column.
Broker Dealer financing is just one of many strategies a firm can employ to finance an acquisition. For more information on Raymond James financing or to speak to a Raymond James Succession & Acquisition Team member, look within the Exclusive Education Content section.
