Am I just not good at this?

Scrim-

Keep doing your thing. By using managed money and fee based accounts that continue to pay you as long as the relationship remains, you are annuitizng your book. Your buddy is doing better presently, but he is slapping clients into VA's that pay out higher. Short term, thats great, but he will be unable to continue making money on those clients because he is locking up their money with VA's that have long term surrender schedules. Unless he flips their accounts into bonus VA's every couple of years or allows the client to take exit charges, that money is captive and lazy. Being a relative newbie ( about 5 years in the biz and two months w/ current firm), I understand the attraction of taking the large upfront hit on PC's, but I TRY to remember that this game is long term, and the best way to succeed is to generate a "salary" of annuitized business to sustain your business model in inevitable down years or flat growth years.

Best way to get wealthy is to do it slowly… Annuitizing your book is one of the smartest ways to build your business in my way of looking at it. Great post Blarmston.

Blarmstorm:

I beg to differ with you.  There are VAs out there that will pay a 1-1.25% trail in year 3 or 4 depending on the product.  I'm not saying that this is the best approach merely that it is a different approach.  He compatriot may also believe that it will be easier to move his clients from the bank to indy down the road.

The feedback I received must have inspired me.

Since my plea for help last week I've opened 4 more managed money accounts for a total of 200k.

Now i'm up to 26 accounts with 1.8M in assets.    My trails begin to kick in this summer as I opened my first account last July.   Assets must be in there for 13 months before I start getting paid trails.

For some reason I tend to open accounts in bunches, not unlike HR's in baseball and bananas.

Scrim

[quote=dashampersand]

Blarmstorm:

I beg to differ with you.

[/quote]

Would that be the same Blarmstorm who spouts off like he knows what he's talking about?

[quote=Put Trader][quote=dashampersand]

Blarmstorm:

I beg to differ with you.

[/quote]

Would that be the same Blarmstorm who spouts off like he knows what he's talking about?

[/quote]

Yes that's the same one, unlike yourself, who is cultured, knowledgeable, balanced, and oh so pleasant....

Thanks for the support JoeDaMan, the checks in the mail…

guys,

I wish we wouldn't digress.  

On a positive note opened 4 more accounts today 1 being managed money for our minimum of $25k.

My goal is to have 100 managed money accounts by year end 2006 which I'm figuring would be around 10M in assets.    My trails start kicking in September of this year so I can begin to start seeing the small payoffs to building my business this way.

After having my best month in March of 17k gross April was awful falling back to 7k.   May has gotten off gangbusters as I've done about 10k and it's only May 5th.  

My goals for gross production are:

2005  150k

2006  250k

2007  400k

2008  500k

For those who have been in the bank programs and built their business similarly does this seem realistic?    Our managed money program pays upfront 3% on non qualified assets and 2% on qualified assets and then the 1.5% and 1.0% trails kick in respectively after 13 months in the program.

Thanks in advance for any feedback.

Scrim

I'm plugging along.  Here is my update for those who might want to follow my progress.

I continue to build momentum.  Maybe there is a light at the end of this tunnel.

In just the past two days including saturday I've done business with 3 separate new clients who gave me a total of 290k to manage.   

That brings me up to 32 managed accounts with around 2.3M in assets.

Have a great Memorial Day weekend and be safe.

Scrim,



How old are you if you don’t mind my asking?  Sounds like you’re
doing well; I hope I have similar success in my first year of
production.  Did you have a network to start with?

Scorpio,

I am 38 years old.  

No network at all when I began.   Spent a few years in mutual fund sales directly out of school and then spent the next ten climbing (albeit too slowly) the corportate ladder on the customer service side of a brokerage firm.

I should do approx 150-175k in GDC in 2005. As previously mentioned I'm doing mostly managed money which doesn't pay as much upfront.   However, over the long run I feel this is the best approach when you consider all parties (clients, myself, my firm)

As I open more accounts and become more persons "trusted advisor" I feel the momentum slowly building week to week.

Scrim

Scrim, I’ve been in your channel since '99 and am just a bit older than you.  I will lay odds that over the next five years you will take a hard look at going independent, and if you do, you’ll go.  After six years in the bank channel, I’ve reached my limit and am moving on.  You too will get tired of working hard and seeing most of what you produce stay in the bank (as opposed to going to your paycheck).  You’ll get tired of the changing comp plans, and all the mandatory meetings, forms, etc.  The only question is whether to go with LPL or Raymond James…which I intend to decide over the next six weeks…

Indyone,

Point well taken.

How will building the majority of my business thru my banks proprietary mutual fund wrap program affect moving my clients to the indy channel down the road?    I've heard it's not easy because you cannot ACAT in kind and would have to liquidate to have these accounts follow me possibly triggering substantial tax bills.

That's why i'm taking the long term approach and will probably stick around for awhile.

Thanks in advance for feedback.

Scrim, I'm surprised that the bank cannot ACAT the positions.  That being said, I believe that there is another way besides the ACAT system to transfer positions, but to be honest, the back office is not my forte, so perhaps I am dreaming.  All I do know is that our bank can ACAT positions out of our wrap program so apparently your issue is bank-specific.  That being said, I hope that your bank finds a way to transfer positions over the next few years.  Not doing so is like holding clients hostage and it's just a matter of time before the first unhappy client gets real unhappy when he/she finds out that he/she is stuck because of large unrealized capital gains.  My guess is that the bank will find some way of accomodating the unhappy client and that will be your ticket.

Also, nothing wrong with building the business a few years so that you can develop rapport with your clients and make them more likely to go when you get your fill.  Just don't sign any more non-competes!

...and by the way, I see nothing wrong with your numbers.  I had a similar profile and grew my numbers less rapidly since I have put about half of my client assets into fee-based accounts.  The best advice I can give you is to start being more selective with who you bring in or you'll get overwhelmed with numbers.  I have quit taking relationships under $100,000 and don't intend to take very many small accounts with me when I leave...

Scrim67,

First off, congrats on gathering the managed money.  But my question, ...

What approach are you using? 

The reason I ask, I am new to the MM biz and still don't feel comfortable talking to clients about it.

Hi,

Let me clarify.

I am building my core business around my firm's mutual fund wrap program which is an investment management account.

We have six models from "preservation" to "aggressive".

I just have my clients talk to me about their own goals, risk tolerance and time frame and present one of our models or more than one if appropriate.

Because it's an investment advisor product (series 65)  I'm required to have at the very least an annual meeting with these clients to see if anything has changed regarding their financial situation.  It really promotes building a quality relationship with my customers and I have a good feeling that a small account today will become a bigger account tomorrow when I become their most "trusted advisor".    In the short time in my banks program the momentum that's building in my branches is almost palpable.

Again, my goal is to gather $500k/mo in this program.   If you extrapolate the numbers over a few years it becomes very powerful and I will have a more than viable business.

Scrim

35 accts 2.4M

updated

[quote=scrim67]

35 accts 2.4M

updated

[/quote]

thanks for sharing.....

Hey joeDaMan, how is the switch to the good side of the Force treating ya??? Need some help with those ACAT’s???

Relationship between my bank partners and myself continue to gel.  

June opened 18 accounts with approx 1.3M in assets.

Totals updated

47 accounts

3.4 M

Have a great yet safe holiday

Scrim you have a good thing going with your managed accts. My bank only pays about half that upfront and we WONT do one for less than $100k and even that is frowned upon. Pretty much anything less than $200k is thought of as a transaction, the powers that be are so short sighted.

I hope you can hang in there, I have been bank channel for three years and am getting tired of the multiple beatings from all sides we tend to endure. Retail wants more loan referrals and brokerage wants more production and says we should get the referrals from retail since they have all the money. Its a vicious cycle, I hear the two divisional SVP's have some awesome blowouts between themselves. I think by the first of next year I will be at brokerage; Jone AGE AMEX, someplace more aligned with what I want to do. 

Didnt want to sound too negative, if you can put up with the crap that comes with a bank, there is a lot of low lying fruit.

Its interesting to hear the stories and growth from advisors.

I just took my 5th Dearborne Pretest and averaged 85... I am ready to go and test..

After exploring my options and numerous offers I have decided to take the route that provides a mentor. An independent firm that is established I think will work best for me..

Now I see the point in focusing on 100k+ clients. If one were to have 100 accounts with 25-50k clients they would end up no time to focus on the 200k+ investors. So inturn their time would be limited and there pontial income would be limited.

[quote=executivejock]

Its interesting to hear the stories and growth from advisors.

I just took my 5th Dearborne Pretest and averaged 85... I am ready to go and test..

After exploring my options and numerous offers I have decided to take the route that provides a mentor. An independent firm that is established I think will work best for me..

Now I see the point in focusing on 100k+ clients. If one were to have 100 accounts with 25-50k clients they would end up no time to focus on the 200k+ investors. So inturn their time would be limited and there pontial income would be limited.

[/quote]

Speaking of time...take a stopwatch with you to the testing facility...let PT know what your elapsed time is to complete the test.

Month end update:

58 accounts 3.8M

I had a good learning experience this month as well as I lost a client.

At end of June I opened an account for an 80 yr old widow with around 100k.  She had a CD mature and needed to reinvest the money.   Because of her age and her risk tolerance we did our "PRESERVATION" model.

Long story short, she comes into my office last week with her son who said the following:

"Didn't you ever hear of the 'rule of 100', my mother shouldn't have 60% in equities,  also there is no FDIC insurance of $100,000"

After correcting him that our PRESERVATION model is only 20% equities and the account, while not having FDIC, has SIPC insurance he apologized for his ignorance but still decided a CD was best for her.

I expect that this will happen on occasion but I am comfortable knowing that I tried to do the best for my client.

On the upside I've had my best morning ever opening another 4 accounts for a total of 220k.   Though taketh and giveth.

Stay cool,

Scrim

The PearsonVue testing facility would not allow watches in the test.  Purses, wallets, notes, hats, etc in locker.  Just a heads up.

They have clocks on the walls.  Just note your start and finish times.

Update:

73 accounts    5M assets

August was pretty active for me opening 15 accounts for about 1.2M

My first trails from accounts I opened last year begin to roll in in September.

Hope everyone is enjoying their summer.

Scrim

Just curious- Who are you prospecting?  What has been your best approach?

Oh that’s easy!..ya see!.. I have this desk!..it’s out in the middle!.. of the bank floor…and,…and, really nice old people who are comming into my bank…They come over to me…You  know, because I’m the most trusted advisor in the whole wide world!!!, and I open accounts, and do business and stuff!!!

Monthly update:   77 accts   5.4M  AUM

September was a bit slow opening 4 accounts for about 400k

I think October should be better.   Hoping to get to 100 accounts by year end.

Have a great October!!!

Scrim67,

Congratulations! You have been doing exceedingly well. Get those spiffs to put more people in front of you.

Good Luck!!!

Sonny

Monthly update

81 wrap accounts for 5.5M

October was a really bad month for me.  I need to look in the mirror and figure out why:

All the above factors contributed to a down month but I refuse to get discouraged!

I'm still above my personal goal for 2005.

This is a marathon and not a sprint!!!!

Have a great November all

Scrim

You gotta love the scrimster.......He reminds me a little of buz lightyear.

Scrim....."To infinity.....and BEYOND"!!!!

I have no kids so I'm not in the loop.

Should I be flattered by the comparison to Mr. Lightyear?

The Scrimster

I think you are flattered.  It is a very cute story.  Buzz was an endearing, hopeful, optomistic and persistant action figure.

http://en.wikipedia.org/wiki/Buzz_Lightyear

There will always be slow months scrim-ster.  It's how you react(keep going?  give up?) that is the true test, mi amigo!  Keep the big picture in sight, you're ahead of your goals!

Find a way to build your pipeline yourself so you don't have to rely on your 'branch partners'....perhaps some of those folks you got started a while ago are now ripe to provide you with some referrals....?

[quote=scrim67]

Monthly update

81 wrap accounts for 5.5M

October was a really bad month for me.  I need to look in the mirror and figure out why:

All the above factors contributed to a down month but I refuse to get discouraged!

I'm still above my personal goal for 2005.

This is a marathon and not a sprint!!!!

Have a great November all

Scrim

Very good.  Excellent.  What month of production are you in??? How long have you had your license.  Sorry, but what firm or bank are you at?  I like seeing your positive posts.  Keep at it and smoke them all.

I am in my first full year of production.   

I have had my series 7 license for about 15 years but spent a long time in middle management before exploring this side of the biz.

I am on pace to bring in approx 7M in assets this year translating to about 200k in production.    Considering most of this biz is fee based and i'm "only" getting 3% upfront 200k has exceeded my goal of 150k this year.  While my numbers currently lag behind most of my colleagues here, I'm comforted in the fact that if my biz was mixed with annuities and such my 200k would be closer to 350k putting me in line with many of them.    I strongly believe in the long run my fee based biz is best for my customers, my firm and myself.

My trails begin hitting in '06 and as of this moment should be around 70k for 2006.      My overall goal for '06 was 250k but I think 300k is very doable.

scrim

Scrim -

I meant only good.....I like the updates, your enthusiasm is refreshing. And your numbers are pretty damn respectable.

No offense taken at all.   I just have never seen TOY STORY.

Maybeeeee,  I also have series 4,6,9,10,24,63 and 65 license which I've acquired over the years.    Not sure they do me too much good but like my dad says "Applied knowledge is power".

One last off-topic update:

If you are familiar with the NFL SURVIVOR pool concept i'm still alive after 8 weeks.   We started with about 1,000 entrants and we are down to 200.    Wish me luck!!!!!!    This week's pick, though I haven't officially made it yet, appears to be JACKSONVILLE!

Scrim,

Is'nt one those licenses good for driving a tractor trailer????

Nope,

That would be the CDL license which I just received the Dearborn books for self study.

I'm backing up....BEEP BEEP

Hey Scrim… Do you think spending 15 years in the industry really was a good move? Or do you wish you started this position 10 or 15 years ago?         &n bsp;   Good job!

I'm not sure what you mean.   I've spent my entire career in the financial services industry.

I have no regrets about anything.   I tend to not to focus on the past and only look ahead to the wonderful future.

scrim

Good attitude.

What I was trying to get to was the fact that some youngsters are not sure where to start in this industry. The fact that you have paid your dues with a career in the industry before becoming a broker is paying off. You know the culture and how to seal the deal!

So I was hinting do you think one should start out as an analysis in the industry or a PFA/broker at 24...?

Sorry for the confusion.

I would keep it simple.

Find your niche on what you have a passion for and do whatever you can to make that your vocation.

Since I'm still relatively new to this game I'm only making half as much when I left my "salaried" middle mgmt, cushy office job two years ago.    Yet, I am atleast twice as happy as my lifestyle is so much more gratifying.

I will most likely reach and surpass my 2003 salary in 2007 at the latest but possibly even in 2006.

By building my practice in the manner of I have chosen I figure I can increast my GDC by atleast 50% a year over the next few years until I hit critical mass.    By that time I can prune where necessary and fine tune to keep building my practice albeit at a slower year over year pace.

The "experience" I have has helped but I would think even more critical is that I had the financial resources to operate my day to day existence in a negative cash flow situation.   I viewed this almost like a startup operation with much of my overhead being paid by my firm.

One change I would like to see for others who want to build a fee based biz is that my firm should have offered more in the way of a 2 year salary as opposed to 3 months.   Firms like mine want the fee based biz but by not providing more of a guarantee many can't survive the first few tough years while building a practice.     If I would've known this 2 years ago maybe I would have negotiated something but I had no leverage anyway.

Scrim

Scrim... For sure some stability to let the employee develop is smart in my eyes. It might be the old school mentality of it was hard for me so it should be harder for you. Some brokers give just enough for the person to survive so they have the inner desire to make more money. 

The fact that I waited a few years to enter the industry is really a plus for me now. At the time I wanted to rush into industry an accept first offer and its a good thing I did not.

For sure you hit this dead on the head. This is like starting a new business. You need passion, dedication and commitment to build something from nothing. The best part of this industry is the fact that one can really not only make a difference in their own financial future, but the lives of others. I love enlightening people about long term strategies, retirement accounts, funds and everything between. What I dont look forward is to the customers like me who with less then 100k in savings have issues with the $50 dollar yearly charge. :)

[quote=executivejock]

Good attitude.

What I was trying to get to was the fact that some youngsters are not sure where to start in this industry. The fact that you have paid your dues with a career in the industry before becoming a broker is paying off. You know the culture and how to seal the deal!

So I was hinting do you think one should start out as an analysis in the industry or a PFA/broker at 24...?

Sorry for the confusion.

[/quote]

Exec.

You won't learn how to swim by spritzing yourself with water. I am 39, I am in the biz for 3 1/2 years. I almost got in back in 1990 after college. However, the 80's were "over" it was a new world.........There are not many things about my life I would change, that is one of them.

One more piece of relevant info on my later entry into this side of the biz.

About 15 years ago I did take a position as a Financial Advisor with a major wirehouse.   I realized very quickly that once I passed my series 7 there was no way I could continue to be employed by this firm.  The whole experience soured me on being an advisor at a wirehouse and I vowed never to go thru that again.    In the early 90's I don't think there were many bank programs in my area of the country.

For awhile I thought my niche could be as a mutual fund wholesaler but that was not to be and in retrospect I'm glad I didn't go that route either.

Being in my bank program I finally feel "at home" and found something I can see myself doing until I'm ready to hang it up and then play golf and poker everyday!  I just need to get past that point where my biz is viable and everyday I get closer to that point.

Scrim

I don't know Scrim.....if I had to do it again, knowing what I know....I would have been a wholesaler for the last 15 years. These guys make north of $250,000 a year, and do very little. I know several of them quite well. Not a job you want to do for the next 20 years. Being a regional manager for the fund Co. would be a good gig. or, when you are done wholesaling, partner with an indy that is leaving, and switch to retail. Wholesalers get the birds eye view of our business, and develop great relationships with advisors......just in case you need a place to land. I don't think now is the time to wholesale. I have seen more turnover in the last 6 months, I don't think fund families are paying what they used to. And I would not want to do that with a wife and family----traveling all the time.

Again, no regrets.  

If I had gotten into wholesaling MF's when I had a chance in the mid 90's perhaps I would've enjoyed the work.   All I know is that when I have my monthly sales meeting and am forced to listen to the same song and dance pitch everytime I cringe.

For sure experience is awesome... I just know my super diverse life has me in with surfers to CEO's. So at times I think gaining some real world experience in numerous areas can be a great bonus before one enters the industry. Not to mention all the contacts I have met in these numerous ventures!

Being a member of this websight has given me the insight to the culture and personalities. Thanks..

Monthly update:

November was certainly better than October as I keep plugging away in my attempt to gather assets.

Brought in about 500k to our managed asset platform.

Totals are now 91 accounts 6M AUM

Everyone enjoy their holiday season!

Monthly/yearly Update:

December ended pretty strongly:

9 new wrap accounts for approx 800k in assets

Ended '05 with 100 accounts and 6.9M assets.

My goal 12 months ago was to hit 100 accounts by year end '06 so i'm very pleased to have reached that goal much more quickly than expected.

Wishing all a happy new year and a great '06!!!!   

On slow days keep reminding ourselves that the baby boomers are just entering retirement years.   There will be enough biz to go around if you know how to find it!!!!!

scrim

scrim67, congrats on hitting your new accounts goal for the year! Now, just sit back and relax…let it sink in. That’s it, that’s it, hold it, hold it…OK, now get back to work!

Scrim, not a bad years work at all. Sounds like you dont mind putting a full day, everyday. Congrats!

I also have built mostly a fee-based practice.  My results were slow at first, but have picked up a ton since doing seminars to gather assets.  I bought a seminar system from Advisor Marketing Systems that’s specifically for fee-based advisors.  You should check out their website.  It’s either www.advisorsystems.com or www.advisormarketingsystems.com.  If those aren’t right I think you can find is by searching for “Advisor Marketing Systems” in google.

First update for '06:

January:  7 new accounts for 500k assets.

totals:  107 accounts 7.5M assets

3/4 of the way to 10M.    My goal is to reach that by the spring.

I'm starting to see the light at the end of the tunnel.    It hasn't been easy.    Hopefully my practice will begin to see positive cash flow by the end of this year.

How long did most of you have your clients before you began to see referrals from them?    

Have a great February all.

Take the 'hawks with the points!

scrim

you rock scrim!!!

don't you work at a bank?  you should have positive cash flow already.....are they making you cover some of your expenses out of your own pocket?

Thanks Joe,

Just for clarification,  cash flow I was directly referring to meeting my own personal expenses.

I've been operating at a negative cash flow since I left my "safe" salaried job two years ago.

We were living at our means when I was salaried but I decided not to dramatically alter our lifestyles when I decided to get into this side of the biz.

scrim

February pretty much flew by:

115 accounts for app. 7.8M at this juncture.

I keep plugging along opening accounts.   

Trying to keep focused.

As I hold account reviews with my clients I am getting some additions which is interesting.

Good luck in March to all!

scrim

oh btw:

If you took the 'hawks with the points:

YOU LOST!!!!

anyone remember Warner Wolf on WCBS-TV and WABC-TV from the 70's to the 90's?   That's what he would've said!

scrim

127 accts  8.6M

March was a pretty good month.     First time where I have seen a decent amount of trails hitting my grid.  My trails will really be increasing substantially the rest of the year and maybe this business will start paying dividends,  pun intended!

Good luck in April to all!

scrim

Congrats, scrim!

Enjoy the moment...that's it, that's it.............Now, get back to work!

132  8.9M

good luck in May!

[quote=scrim67]

132  8.9M

good luck in May!

[/quote]

Scrim, this thread should be required reading for every rookie. You are holding a master class on how to build a long term business. Good luck in May!

scrim how much are you making anually yourself? how old are you? etc…

Obviously I will not get too specific to remain anonymous but I am a few years shy of the big 4-0.

Our payout is pretty standard in the industry.

I am in this business for the money but that ranks a few rungs down the ladder of why I enjoy this business.

I'm a firm believer if you like what you do for a living rewards will follow.   Some just need to wait a bit longer than others.

scrim

are you in the waiting for the money but still enjoying life period?

I guess you could look at it from that perspective.

I have to say, scrim, that you have the right attitude about things.  You are a sponge and soak up everything useful, I would imagine.  Keep doing that - whether it’s from someone 1 year in or 25 years in the biz, there are things you can learn from all people and manipulate them into your approach.  Best wishes.

143  9.5M  as May was a pretty decent month for me gathering assets, forging relationships.

This has been the worst performance month since I began my practice.

When my clients get their statements next week any words on how to handle the phone calls I'm anticipating receiving from clients.

Most of my accounts are conservative in nature meaning most (50-60%) of their assets are in fixed income.   Nevertheless, some accounts are down between 1-2% this month.

Thanks in advance for any feedback and good luck in June.

scrim

[quote=scrim67]

143  9.5M  as May was a pretty decent month for me gathering assets, forging relationships.

This has been the worst performance month since I began my practice.

When my clients get their statements next week any words on how to handle the phone calls I'm anticipating receiving from clients.

Most of my accounts are conservative in nature meaning most (50-60%) of their assets are in fixed income.   Nevertheless, some accounts are down between 1-2% this month.

Thanks in advance for any feedback and good luck in June.

scrim

[/quote]

The fixed income portion of your client's portfolio is the problem. I too have a lot of fixed income type of clients.  You need to explain to them the inverse relationship between their fixed income rates and the effect that the rise in the Fed Funds rate has on their portfolios.  I am recommending bond swaps to those clients who are in longer term bonds that are unlikely to ever be called in this interest rate environment. Some of my clients can use a capital loss to offset income or cap gains.  I am suggesting alternative income investments such as the floating rate funds and really attempting to get at least a small portion of their portfolios into balanced funds or a conservative growth position to attempt to recover some of the losses. 

Instead of dealing with the downside of the statement, you need to show the clients that you have an overall strategy.  I would be proactive and contact your clients before they get their statements to stew about and get them into your office to do a face to face explanation of economics 101.

I'm viewing it a bit differently.    My clients who have less exposure to bonds actually lost more this month.

It's those with higher bond allocations and cash who were hurt the least.

scrim

I agree with BL… you need to be proactive instead of reactive… I am calling my largest clients tomorrow to prepare them for their May statements… They will appreciate the heads up, and it gives you another chance to reinforce your long-term strategy with them… I did this with a client about 2 months ago and they decided to move in another 200K from another firm…

Dittos on being proactive.

Most people see the market is getting hammered on the news.   Just let them know everything is going to be alright.

Just saw on CNBC (financial porn) that May was the worst performing month for the S&P in two years!!  Use that as ammo

Are you in a bank Scrim?  PM me as I don’t get to these boards much.  Just curious on how you are getting your leads/clients.  I seem to be in an area where people just don’t seem to care about their finances or retirement savings.  I feel like going to their house, knocking on their door, and saying “let me see your statements and show you how you are being screwed.”

This type of market also makes acquiring new clients much easier. The reason being: the typical "non-proactive" broker, has probably been hiding from their clients, since the issuance of May account statements.

If you're the first to call your prospect / "their" client and assume the consultative role, you'll score some serious brownie points - if not the account itself.

Hi all,

149 and 9.5M

I have weathered the last two months decently only losing a few small accounts. Doing quite a bit of handholding as well.  I figured those who would bail on me after only a short time were customers and not clients. 

I had hoped six months ago to hit 10M by the end of the first half of this year and I fell short.   I realize this is a marathon as opposed to a sprint so falling short of my goal is not going to ruin my vacation.

Have a great summer!!!

scrim

scrim where do you work?

Obviously, I do prefer to keep my anonymity intact.

I am employed in a bank channel program.

scrim

[quote=scrim]

I have weathered the last two months decently only losing a few small accounts. Doing quite a bit of handholding as well.  I figured those who would bail on me after only a short time were customers and not clients.  [/quote]

What is up with clients leaving for one bad month? If you lost clients for an 8% "correction" what will happen when we really have a tough market?

I think you should do econ 101 as suggested by Babbs, but you should also work on setting expectations. If clients are in the market things will go up AND down from time to time.

I know how bank clients are and if they cant take market volatility get them an annuity.

fixed annuities are much less desirable compared to money market and CD's in my opinion.   I stick with those.

scrim

Giff,

Working in a bank setting; it's not that they really "leave".

I just refer them back to my bank partners since we work as a team.

scrim

Fixed annuity=sucky sucky!

VA's are where its at. Those guys are providing the world right now in their living bene's. Axa, Hartford, Season, Guardian these guys provide AWESOME living benefit riders. From guaranteed rates of returns to income and withdrawal guarantees. Of course it comes at a price, but when I was a bank FA VA's could help a lot of folks SWAN.

July was a lost month.    My biggest account decided to find a new advisor.   I will learn from my mistakes going forward!

145 accts 9.2M

It's 100 today...STAY COOL!

SCRIM

[quote=scrim67]

July was a lost month.    My biggest account decided to find a new advisor.   I will learn from my mistakes going forward!

145 accts 9.2M

It's 100 today...STAY COOL!

SCRIM

[/quote]

145 accounts
biggest one lost, but you lost less than $300k
prev post indicated $150k in fee's annually, accts must avg ~1.5%

do you plan on any more than annual reviews?

do you worry that some of your smaller fee based will not get the service they signed up for?

Scrim,

It could be that the client is simply transferring the account to a future son-in-law or there could be something wrong with your practice. Given that they are your largest account, it doesn't bode well if you can't retain affluent clients. That's why it's important to find out why they're moving their account NOW. 

If the client won't give you a straight answer, have one of your employees call the client. The employee can use the pretext for the call, that "They just wanted to let the client know that there are no problems and that the account is in the process of being transferred and it should be completed in a few days and, by the way, were there any problems to cause the transfer?" or something to that effect.

If that doesn't work, send the client an "Exit Survey" with a complimentary dinner for two, round of golf, etc. for just filling it out. Keep in mind, that the information the client might give you, could be worth millions in future earnings to you.

Correct the problem (if any), learn from this experience, and move on.

Good luck!

PS: You may have lost a client, but you've gained a new qualified prospect. Keep in touch with them. They might come back, yet. (It's kind of like dating your ex-wife.)

I had quarterly reviews with this elderly couple.   They definitely liked me as a person but they always questioned me and our strategies.    They were disappointed more in their returns than my service which is why I always try to sell myself first.   Sometimes that doesn't work.

When we met last year I could've put all their assets into a CD at 3.75% if they didn't mind locking the money up for about a year.  I divided their money up in a capital preservation plan that should  return about the same and have their money liquid.  Well, they did earn around 4% but were disappointed. 

 They told me they were going to use the monies but I truly believe they probably just purchased a 5.5% CD at a bank.

For their fees, I do tell them about their quarterly rebalancing, cost basis statement for tax preparation, annual reviews, access to multiple money managers, blah blah blah but what I stress is that they get me as their "trusted advisor".   

I am looking to break into the 10M mark in fee based with this fall being the projected target date.

I need to find the higher net worth accounts as my largest account now stands at around 200k.  Most of my accounts are in the 50-100k range.

Tomorrow, I'm meeting with a home health care provider in the area as we are discussing  how we can both grow our businesses going forward.    She mentioned she needs someone to talk to her clients and even their children about finances.     I'm assuming if they can afford to hire her they are relatively well-to-do.   We shall see but I know it's important to partner with COI's which I have had a very hard time doing to date.

scrim

[quote=scrim67]

I had quarterly reviews with this elderly couple.   They definitely liked me as a person but they always questioned me and our strategies.    They were disappointed more in their returns than my service which is why I always try to sell myself first.   Sometimes that doesn't work.

When we met last year I could've put all their assets into a CD at 3.75% if they didn't mind locking the money up for about a year.  I divided their money up in a capital preservation plan that should  return about the same and have their money liquid.  Well, they did earn around 4% but were disappointed. 

 They told me they were going to use the monies but I truly believe they probably just purchased a 5.5% CD at a bank.

For their fees, I do tell them about their quarterly rebalancing, cost basis statement for tax preparation, annual reviews, access to multiple money managers, blah blah blah but what I stress is that they get me as their "trusted advisor".   

I am looking to break into the 10M mark in fee based with this fall being the projected target date.

I need to find the higher net worth accounts as my largest account now stands at around 200k.  Most of my accounts are in the 50-100k range.

Tomorrow, I'm meeting with a home health care provider in the area as we are discussing  how we can both grow our businesses going forward.    She mentioned she needs someone to talk to her clients and even their children about finances.     I'm assuming if they can afford to hire her they are relatively well-to-do.   We shall see but I know it's important to partner with COI's which I have had a very hard time doing to date.

scrim

[/quote]

This is going to happen more and more because people in their 50s and 60s need to earn about 20% in order to be on target for a decent retirement--it's their fault, but that's the reality.

So, they figure they'll trust a "professional" and end up with a kid who works in a bank but who is essentially illiterate.

When that "professional" tells them that they got 4% they're going to fire that "professional."

As you kids fixate on reducing risk you're also reducing reward--and you're going to be fired again and again.  The idea that you'll have a book that will annuitize with a steady stream of trails based on the fact that you prepare nice reports and look cool in your "Country Club Casual" wardrobe is nothing but a dream.

Nevermind my other post, you're still a d*ck.

[quote=BankFC]

Nevermind my other post, you're still a d*ck.

[/quote]

Does calling me a name change the reality of what I am saying?

[quote=NASD Newbie][quote=BankFC]

Nevermind my other post, you're still a d*ck.

[/quote]

Does calling me a name change the reality of what I am saying?

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[quote=joedabrkr]

Yes there is a kernel of truth behind what you're saying. 

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So, is it wrong to state that truth?  Is that the issue, don't say things that are true unless they are "happy thoughts?"

[quote=NASD Newbie][quote=BankFC]

Nevermind my other post, you're still a d*ck.

[/quote]

Does calling me a name change the reality of what I am saying?

What it doesn't change is that you're an ignorant d*ck.

[quote=NASD Newbie]

[quote=joedabrkr]

Yes there is a kernel of truth behind what you're saying. 

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So, is it wrong to state that truth?  Is that the issue, don't say things that are true unless they are "happy thoughts?"

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[quote=joedabrkr] [quote=NASD Newbie]

[quote=joedabrkr]

Yes there is a kernel of truth behind what you're saying. 

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So, is it wrong to state that truth?  Is that the issue, don't say things that are true unless they are "happy thoughts?"

[/quote]

I said a "kernel", implying that you were hardly spot-on accurate.

I'm not concerned about you sharing any overly happy thoughts with us....I rather doubt that will be a problem. ;-)
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Do you agree that it is possible--even probable--that clients will become unhappy with whatever results you are generating for them if they are not seeing how they will be able to retire?

Do you agree that if you're a sixty year old advisor it is very possible that 90% of your AUM can simply be ACATed out of your book--leaving you high and dry as you face your own retirement?

[quote=NASD Newbie][quote=joedabrkr] [quote=NASD Newbie]

[quote=joedabrkr]

Yes there is a kernel of truth behind what you're saying. 

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//–>[/quote]

So, is it wrong to state that truth?  Is that the issue, don't say things that are true unless they are "happy thoughts?"

[/quote]

I said a "kernel", implying that you were hardly spot-on accurate.

I'm not concerned about you sharing any overly happy thoughts with us....I rather doubt that will be a problem. ;-)
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Do you agree that it is possible--even probable--that clients will become unhappy with whatever results you are generating for them if they are not seeing how they will be able to retire?

Do you agree that if you're a sixty year old advisor it is very possible that 90% of your AUM can simply be ACATed out of your book--leaving you high and dry as you face your own retirement?

[/quote]

And just why does your simple reasoning conclude that this can't happen with a commission based account?  (My goodness, but you're stupid.)

[quote=scrim67]

Giff,

Working in a bank setting; it's not that they really "leave".

I just refer them back to my bank partners since we work as a team.

scrim

[/quote]

They left you so easily for a couple reasons - 1) you work in a bank where people walk in.  Were these clients referred?  Did you spend months soliciting them and developing the relationship?  Did you do a complete plan and educate them about the market? EASY COME EASY GO.; 2)  fee based wrap products are easy for people to decide to get into because they know they are easy to exit.  Can't expect one without the other.

Do not take  it personal, but do spend more time developing the personal relationship and making sure they understand the investments they have and what they will do in the future.

If you showed them a long-term chart of the S&P 500 Index which has a trendline of 7.34% (without dividends), they could very clearly see this recent drop is nothing but a slight wiggle on the trend.  Really not enough to get out of the market over.

Tomy,

Very good points.

Because fee based in so easy to get out of my expectations are this will happen occasionally no matter what I do.

A good portion of my practice are referrals from my bank partners.

Have a good wknd.

scrim

151  9.9M

When I began this journey two years ago I was hoping to reach 10M assets in managed money by the end of 2006.   I am really close now!

Everyone enjoy your holiday weekend and if you live near the mid-atlantic coast bring your umbrella.

Enjoy the balance of your summer.

Scrim

Milestone hit today of 10M in managed money.

Ok, now back to work!

Have a great weekend.

scrim

[quote=scrim67]

Milestone hit today of 10M in managed money.

Ok, now back to work!

Have a great weekend.

scrim

Just think, if you had placed all that money in some "preferred" funds, (carefully avoiding the breakpoints, of course) you'd personally be about $200,000 richer and the wholesalers' new best friend!

Ahhhh, just jerkin' yer chain! Congrats man! Me and Paris are going to throw a few back, in your honor. I just can't let'er drive this time!

158 accts  10.3M

Hope everyone had a good 3rd quarter!

Lock of the year.....Carolina -7

scrim

Nah… The best bet is the Colts giving the Jets 9 points… With the Jets at home and their defense playing great… With a healthy Chad Pennington and a decent offense…

hmm.....

so which side are you on?  your post is slightly ambiguous

[quote=scrim67]158 accts  10.3M

Hope everyone had a good 3rd quarter!

Lock of the year.....Carolina -7

scrim[/quote]

Net 7 accounts and 400K for the month...scrim, don't take this wrong, but with the wind behind your back in September, I figured you'd jump more.  Did the bank's models underperform?

Underperform compared to what benchmark(s)?

Most of my models are conservative by nature meaning more heavily weighted to fixed income and cash as opposed to stocks.

I did have one big withdrawal of 100k because a client wished to paydown some debt.  Also clients accounts paid their quarterly fee this month so that impacts the AUM.   If you just look at assets brought in for the month is was closer to 600k.

I've already brought in 200k for October so i'm off to a good start and it's technically still september!

scrim

also recommended to a couple of clients that they close their fee based accounts because they were being charged to high a percentage after taking some liquidations in the past.

I believe this happened twice in September so I opened 9 new accounts with a net of seven.

scrim

grammar police please find/replace "to" with "too" in my previous post.

ty

scrim

Scrim how long have you been at it?

This is my second full year.

scrim

Indy,

I just ran some numbers and my portfolios were up around  .5 percent for the month of September net of my quarterly fee which gets charged in this month.

For the 3rd quarter my average portfolio was up 3% net of fees.  Considering I set a majority of my clients' expectations at around 7% annually and a big chunk is in tax free bonds they should be relatively pleased.

scrim

hmmm...I thought my stuff was quite a bit better than that in September...I'll have to go look at my model returns now...

I'm not dishing on you necessarily, just more curious than anything, although I don't think it's a bad for us to push each other a bit...I'm sure most of us could do better, eh?

168 and 11.2M

October was a solid month with assets increasing around .9M

About half my clients have now been with me more than one year.

For the vets out there at what point should I see unsolicted referrals from my clients assuming they are satisfied/delighted with the customer service and less importantly, the performance of their accounts?

I do always ask as well but I imagine it's still too early in the game because I have not seen many referrals to this point unsolicted or otherwise.

Happy Halloween.

Boo,

Scrim

Scrim,

I think this depends on the individual and the type of clients they have.  I am realtively new like you, and I have started to see referrals already.  BUT, many of my clients are with one large employer, and they all talk like crazy.  Many of the employees are in their late 50's, make good money and had a GREAT retirement plan, thinking about early retirement, and I have worked this out for several of them.  Word travels fast.  I don't get referrals from the 35 year old that I opened a Roth and a 529 for.  You seem to be making solid progress, so you should really start seeing them soon.  Keep in mind, sometimes you have to ask, nudge, wink, and beg for referrals.  I try to bring it up in conversation ("gee I much prefer getting clients referred to my rather than spending my time looking for new ones.  That way I spend my time servcing my clients, blah, blah, blah...").

Scrim,

Try setting up a "client appreciation" lunch at an upscale spot in your town. Have a wholesaler speak on the "state of the markets", and have them pony up the cost. Then, select your 15-20 best clients and personally call them:

"Mr. Client, I am holding a luncheon event, and as a valued client I would like for you to be my guest. Please feel free to bring a friend or someone you think may benefit from learning more about howe I help clients such as yourself."

Even if you only get a couple referrals to come along, you still get valuable face time with your exisiting clients, and that strengthens not only the bond but also increase the likelihood of referrals in the future.

168 and 11.5M

I had a few big withdrawals unrelated to their experiences doing business with me, allegedly.

The AUM goal I set when I started was to be at 12M by the end of 2006 and i'm going to be in the ballpark.

Wishing everyone a happy yet healthy holiday season,

Scrim

I've been in production since october and have yet to open one solid account. I'm out there knocking on people's doors and doing exactly as I have been instructed but to no avail yet. There are days when I'll walk for 5 hours and meet only 5 people and then the "voices" start kicking in.

Mind you, I am not required to door knock, but knowing people have built successful careers from it I thought I'd follow it to a T and commit to it. The purpose is to make 30 contacts a day and follow up with them until they threaten to sue me if I do not stop calling.

My biggest fear, is that I'm doing all this work to eventually open an IRA for someone who wants systematic withdrawals every month. I'm not entirely sure if that's going to keep me around.

Regardless, I ignore the fear and press on. But some days it is just down right depressing.

Welcome to EJ. You make it you may not. However I did what you did and almost 5 years later and 35 mill aum I’m still standing. If you want it bad enough and keep going you can do it, But it’s tough work for the next 3-5 years.

[quote=anabuhabkuss]

I've been in production since october and have yet to open one solid account. I'm out there knocking on people's doors and doing exactly as I have been instructed but to no avail yet. There are days when I'll walk for 5 hours and meet only 5 people and then the "voices" start kicking in.

[/quote]

Are you just door knocking?  If so, join the local Chamber.  Go to the monthly luncheons, and all the ribbon cuttings.  Call the people you have met at the lunches, breakfasts, ribbon cuttings, etc. and ask them to lunch.  At the END of the lunch, say "It was good getting to know you better. By the way, would you like for me to take a look at your portfolio?" and then shut up.  You would be amazed at how many people will say yes.  If you can review their account, you can generally get their account. (They would not have let you review their account if they weren't a LITTLE interested in moving.)

[quote=now_indy][quote=anabuhabkuss]

I've been in production since october and have yet to open one solid account. I'm out there knocking on people's doors and doing exactly as I have been instructed but to no avail yet. There are days when I'll walk for 5 hours and meet only 5 people and then the "voices" start kicking in.

[/quote]

Are you just door knocking?  If so, join the local Chamber.  Go to the monthly luncheons, and all the ribbon cuttings.  Call the people you have met at the lunches, breakfasts, ribbon cuttings, etc. and ask them to lunch.  At the END of the lunch, say "It was good getting to know you better. By the way, would you like for me to take a look at your portfolio?" and then shut up.  You would be amazed at how many people will say yes.  If you can review their account, you can generally get their account. (They would not have let you review their account if they weren't a LITTLE interested in moving.)

[/quote]

Chamber mixers, Rotary, etc are all a good start. Also, try to find out where groups of people you want to market like to socialize or conduct light business transactions. Golf courses, coffee shops, restaurants, etc. For example, I live in an area full of dairy farms, so I started going to the cattle auctions. The key is to not force yourself onto the group. You want to gently work your way in. Make conversation about everything and anything but never mention what you do or why you are there unless they ask, and then keep your answer short and sweet. These approaches take time, commitment, and dedication but in the long run they do pay off.

[quote=anabuhabkuss]

I’ve been in production since october and have yet to open one solid account. I’m out there knocking on people’s doors and doing exactly as I have been instructed but to no avail yet. There are days when I’ll walk for 5 hours and meet only 5 people and then the “voices” start kicking in.

Mind you, I am not required to door knock, but knowing people have built successful careers from it I thought I'd follow it to a T and commit to it. The purpose is to make 30 contacts a day and follow up with them until they threaten to sue me if I do not stop calling.

My biggest fear, is that I'm doing all this work to eventually open an IRA for someone who wants systematic withdrawals every month. I'm not entirely sure if that's going to keep me around.

Regardless, I ignore the fear and press on. But some days it is just down right depressing.

I took the job and then backed out. Something didn't fit right and I couldn't sleep. So i stayed put. I do NOT work for EJ. I work with guys who have though and they are really successful so I asked them how it was done and have committed to the process.

I just joined the chamber yesterday. Also went to a "Power Lunch" where Lewis Timberlake speaks (i can't believe free I'm doing free advertisement but if you do not know of this guy give him a quick google search for his Timberlake and associates site).

Ana....,

The thing with doorknocking...if you are forced to do it (as with Jones), it somehow works.  You have to be consistent and persistent (meaning keep doing it, and keep following up).  If you mean that you have been in production since Oct. 2006, I would not sweat it yet.  It took me three months to get any real traction, but once I did things seemed to gel.

I too had days like you mentioned...5 hours, 5 contacts.  I got to the point where I could get 2-5 contacts per hour (solid contacts).  But, there are far too many factors when talking about doorknocking results (neighborhood, weather, your approach, time of day, etc....).  But, as people said above, don't focus exclusively on doorknocking.  That should get you a good pipeline of contacts, but that is all they really are.  You need to get to KNOW people.  There are very few people that became clients or agreed to an appt off the first doorknock.  A year into it and I am still working some of my original prospects, dripping on them, waiting for their "right time", sending newsletters, cards, etc.  Keep at it.  If you have still had zero results after 4-6 months, you might try looking in the mirror (maybe something is wrong with your approach, personality, appearance, etc.).

Ending 2006   170 accts and 11.7M

Wishing all a Happy New Year and a prosperous 2007!

scrim

173 accts  12.1M

My January was better than it appears as far as gathering assets because I lost a few accounts for various reasons that were mostly out of my control.

Well, I got it wrong last year so let me try this again.

Take the Colts and give the seven.

Colts 31   Bears 13

scrim

179 and 12.5M

Hey, I got it pretty right this year!!  

I wish I put some money on the game.

scrim

March was an interesting month.

I had my second best month of production ever since my trail business is growing.

I ended March with 177 accounts and 12.4 M

I have a net loss since the end of February because of a few deaths of clients and one client who decided to fire me despite good performance and customer service.

Can't win 'em all.

scrim

Scrim,

Noticed that your accounts increased a couple but your AUM went up about 700K since year end. Seems like it has been pretty level for the past couple months.

What methods are you using to drill down and try and capture more household assets? With existing clients who have opened accounts and have outside funds, I have been reviewing Zephyr analysis with them and have been able to consolidate some decent accounts that were held away.

Just a thought.

Those assets and accounts  are only my mutual fund wrap accounts which are annuitized.

My total book is about 22M.

I am focusing more on drilling down on existing accounts that I've opened over the past few years.   I'd rather have quality than quantity.

scrim

good work scrim, are all these accounts referals at the bank or are you actually calling new prospects to land these accounts?

Almost all bank referrals.

scrim

177  12.7M

I'm still in a period of consolidation for some reason instead of growth.

As the months pass i'm focusing more and more on gathering assets from existing customers while still trying to forge new relationships.

Spring has sprung finally!

scrim

$1MM in new assets in 4 months? That would get you fired from most firms…

Blarm,

That's only assets that are annuitized.   I've brought in another 1M outside of our annuitized program.

I've also "lost" about 500k in assets that were assigned to other reps or because clients passed on.

I'm about on track for where I need to be in 2007.

I'm looking at around 350k in gross this year of which about half is in recurring fee business trails.

That's somewhat below where I thought I'd be at this point in my practice but it's in the ballpark.

scrim

You’re doing it the right way Scrim.

Thanks for the sincere encouragement Hoop.

May is off to a solid start in my world as I've added about 350k to my fee based business just this week.

It's amazing to me how things tend to run in bunches sometimes, not unlike grapes and home runs

scrim

180  13.4M

The first half of May was great for gathering new assets.  

Unfortunately, assets are also walking out the door as well.    Since my programs have no handcuffs when "something suddenly comes up (thank you Brady Bunch)"  it's sorta easy to liquidate.

Comes with the territory I know.

I always make sure my clients have an emergency account but that doesn't always work.

It's all good though....the trend is my friend.  

Enjoy the summer.

Scrim

I added 4 accounts Monday and Tuesday this week...250K, 200K, 150K on Monday and another 250K yesterday...all 401(K) rollovers.  First two went into Variable annuities @ 18K gross and 1% trail starting next year.  The $150K went into the fee-based platform at 1.25% and the 250K went into the fee-based platform at 1.00%.  Scrim, this pitch is for you...the two VA accounts were pitched a fee-based account at another institution and didn't like that neither income nor principal had any guarantees and thus, kept shopping.  They loved the idea of the VA even though I told them it may lag general market performance by 2% or so due to the cost of the guarantees.  The guy pitching the fee-based program won't see them again...versatility is your friend...

Total score this week in new business...18K gross for this month and $8,875.00 per year in trail income.  Overall assets now over $37 million with a budget of $40 million by year end...I think I'll easily knock that out of the park...even with a 10% correction.

Nice work Indyone.

Indy,

Are those 401k rollovers from existing relationships?

I get maybe one of those per month.

Thanks for the VA advice.   I still have a problem with the whole concept especially in IRA's.  

Great job!

All four were new business referrals...one from an existing client and three from CPAs that I work with...that's almost like being in a bank!

On VA's...just keep an open mind and don't listen to that garbage about buying a tax-deferred product in a tax-deferred account.  Very, very, very few of my VA clients buy the VA for tax deferral.  Almost always, they are buying the VA for the ability to participate in the market with some assurances that they won't lost their nest egg.  I've said it before, but I was once you...didn't believe in VA's at all.  Thankfully, I kept an open mind and eventually, I figured out where they make sense...

Keep doing the good work and always be on the lookout for what is best for your clients...you'll be fine...

Thanks.

I still haven't figured out how to partner with COI's.   I have some of clients and keep in touch with them, but for some reason we still have a disconnect as it pertains to referring to one another.

As far as VA's go, I still don't see the value when compared to the costs.   Having a well diversified portfolio of stocks, bonds and cash also ensures they won't lose their nest egg as far as I'm concerned.

Naive?   Maybe?

scrim

I still have a problem with the whole concept especially in IRA's. 

You should then have the same problem with growth stocks inside of an IRA.  How something gets treated outside of a qualified account should have zero relevance as to its appropriateness inside of one.

Having a well diversified portfolio of stocks, bonds and cash also ensures they won't lose their nest egg as far as I'm concerned.

You may be correct, but as you should realize, and you have been told many times, this will very much limit their upside potential.  How much cash should someone have in their retirement account?

[quote=scrim67]

As far as VA's go, I still don't see the value when compared to the costs. [/quote]

Perhaps, but will your prospect see the value?  I always give my 401K rollover prospects the choice of mutual funds or a va with some type of living income benefit.  In the end, I don't care which one they choose.

[quote=anonymous]

I still have a problem with the whole concept especially in IRA's. 

You should then have the same problem with growth stocks inside of an IRA.  How something gets treated outside of a qualified account should have zero relevance as to its appropriateness inside of one.

Having a well diversified portfolio of stocks, bonds and cash also ensures they won't lose their nest egg as far as I'm concerned.

You may be correct, but as you should realize, and you have been told many times, this will very much limit their upside potential.  How much cash should someone have in their retirement account?

[/quote] I was pertaining VA's in IRA's based on the cost structure.  I can do an entire portfolio for an IRA at 160 bps.   VA's inside an IRA will be atleast 200bps.

Cash inside a retirement portfolio would of course vary based on age, risk tolerance, etc.     Under any scenario I would never suggest more than 10-20% cash or cash equivalents for retirement assets even when in distribution phase.

scrim

[quote=Mike Damone][quote=scrim67]

As far as VA's go, I still don't see the value when compared to the costs. [/quote]

Perhaps, but will your prospect see the value?  I always give my 401K rollover prospects the choice of mutual funds or a va with some type of living income benefit.  In the end, I don't care which one they choose.

[/quote] I hope it's evident that I give my clientele choices.   They are free to choose between conservative, moderate, aggressive choices.   To help them make a choice I do a risk tolerance evaluation which hopefully most advisors do.

I just have issues with products I'm not comfortable with for whatever reasons.    Va's and EIA's head the list.   

scrim

Scrim is it worth 40 bps to the client to have a guarantee to not lose money?  

The answer is going to be "yes" for many of your clients. 

The death benefit guarantee also has value.

Your clients will pay more money, but ultimately they will have a higher return because the guarantee will have a positive impact on investor behavior.  This is the real hidden benefit of the living benefits of VA's.

The arguments against them always focuses on investment performance instead of investor performance.

[quote=scrim67][quote=Mike Damone][quote=scrim67]

As far as VA's go, I still don't see the value when compared to the costs. [/quote]

Perhaps, but will your prospect see the value?  I always give my 401K rollover prospects the choice of mutual funds or a va with some type of living income benefit.  In the end, I don't care which one they choose.

[/quote] I hope it's evident that I give my clientele choices.   They are free to choose between conservative, moderate, aggressive choices.   To help them make a choice I do a risk tolerance evaluation which hopefully most advisors do.

I just have issues with products I'm not comfortable with for whatever reasons.    Va's and EIA's head the list.   

scrim

[/quote]

I can't think of a better reason not to sell them.

[quote=anonymous]

Scrim is it worth 40 bps to the client to have a guarantee to not lose money?  

The answer is going to be "yes" for many of your clients. 

The death benefit guarantee also has value.

Your clients will pay more money, but ultimately they will have a higher return because the guarantee will have a positive impact on investor behavior.  This is the real hidden benefit of the living benefits of VA's.

The arguments against them always focuses on investment performance instead of investor performance.

[/quote] Maybe I don't give investors enough credit.   I really think most of them have no clue is 40 bps worth it not to lose money.  

Remember, the most important point in my case is that I'm not comfortable with the product.

I would hope most advisors would not present a product they are not comfortable in owning themselves.

scrim

Scrim,

I'm in complete agreement that you should not be selling the product since you are not comfortable.

I would respectfully suggest that you gain some expertise with VA's so that either you can be comfortable with selling them, or just as importantly, you can become comfortable in knowing that it is in your clients' best interest not to buy them.

[quote=anonymous]

Scrim,

I'm in complete agreement that you should not be selling the product since you are not comfortable.

I would respectfully suggest that you gain some expertise with VA's so that either you can be comfortable with selling them, or just as importantly, you can become comfortable in knowing that it is in your clients' best interest not to buy them.

[/quote] While maybe not an expert since I don't sell them, I know enough about them to make an informed decision.    I've actually read an entire contract.    It made me very tired.

scrim

[quote=scrim67]

Remember, the most important point in my case is that I’m not comfortable with the product.

I would hope most advisors would not present a product they are not comfortable in owning themselves.

scrim

[quote=joedabrkr] [quote=scrim67]

Remember, the most important point in my case is that I'm not comfortable with the product.

I would hope most advisors would not present a product they are not comfortable in owning themselves.

scrim

[/quote]

It's funny that you close with that thought.  Why? Because in the last year or so, as I've been learning more about annuities, paying more (current) taxes, and thinking about my retirement, I've begun to think seriously about funding an annuity myself as a supplemental retirement vehicle.
[/quote] What kind of annuity?

scrim

[quote=scrim67][quote=joedabrkr] [quote=scrim67]

Remember, the most important point in my case is that I'm not comfortable with the product.

I would hope most advisors would not present a product they are not comfortable in owning themselves.

scrim

[/quote]

It's funny that you close with that thought.  Why? Because in the last year or so, as I've been learning more about annuities, paying more (current) taxes, and thinking about my retirement, I've begun to think seriously about funding an annuity myself as a supplemental retirement vehicle.
[/quote] What kind of annuity?

scrim

[quote=scrim67]While maybe not an expert since I don’t sell them, I know enough about them to make an informed decision.    I’ve actually read an entire contract.    It made me very tired.

scrim[/quote]

...I'll bet it did.  At any rate, I think we've polluted your thread enough with the VA debate.  You may never sell them and that's fine by me.  I just couldn't help myself feeding you another example of where they make sense.  Short of a VA, those first two accounts probably would have gone straight to bank CDs and I'm confident that the CD option would be a poor one for 100% of their money over a normal retirement lifespan.

[quote=Indyone][quote=scrim67]While maybe not an expert since I don’t sell them, I know enough about them to make an informed decision.    I’ve actually read an entire contract.    It made me very tired.

scrim[/quote]

...I'll bet it did.  At any rate, I think we've polluted your thread enough with the VA debate.  You may never sell them and that's fine by me.  I just couldn't help myself feeding you another example of where they make sense.  Short of a VA, those first two accounts probably would have gone straight to bank CDs and I'm confident that the CD option would be a poor one for 100% of their money over a normal retirement lifespan.

[/quote] I appreicated everyone's constructive feedback.   Whatever business I've turned away, not gotten, lost, etc.  is a small price to pay for being able to be true to myself.

scrim

Word to that.

181   13.5M

Still seem to be in a mode of losing accounts as I open new ones.    Weeding out the customers and keeping the clients I guess.

Still having my best month in production since my quarterly trails are getting stronger.

Have a great holiday and handle all pyrotechnics carefully!

Scrim

Scrim, if you don’t mind me asking… what do you attribute to the loss of accounts?

[quote=Mike Damone]Scrim, if you don’t mind me asking… what do you attribute to the loss of accounts?[/quote]

Probably people taking their money out of the accounts…

I would say a few factors:

Some were expected as the client had a very short term investment goal  (1-2 years)

A common them also seems to be 401K rollovers where clients had no other altervatives but to liquidate as they have much bigger than expected bills to pay in retirement

One client liquidated because he decided to give the money to his son for a down payment on a home.

A few clients died.

One account was actually lost to a former colleague/buddy of mine who switched firms and my customer happened to walk into his bank branch which is about one hour from mine.

There is a disproportionate accounts leaving me from branches I used to cover in the past.   

This just reinforces that going to one branch instead of trying to cover a whole circuit is a good idea.

scrim

There is a disproportionate accounts leaving me from branches I used to cover in the past.   

This just reinforces that going to one branch instead of trying to cover a whole circuit is a good idea

Do you think that is because you just physically aren't getting in front of the clients often enough?  Where are they going? another brokerage, annuities.  How are they being contacted by your competition? If you can figure out this information, you may have the ability to come up with a strategy that will combat your competition.   

If you can't physically be in front of people, can you send newsletters and articles followed by a phone call to reinforce customer loyalty?

I keep in contact with the ones I feel are worth keeping.

Being the third year in my practice and recently going to a "centralized" mode I'm viewing much of this as a consolidation period.   

Simply trying to reinforce relationships with clients, weed out the customers.

I don't do much in the way of articles/newsletters preferring to use the telephone and face to face meetings.     My back office sends out quarterly newsletters to my fee based clients updating them on the stock, bond and cash markets so anything I might do would be overkill IMHO.

scrim

Ditto Bunny. And as a financial planner brought up to always get in front of clients, unlike those “evil” brokers who do more with the phone, I have found that lots of phone contact really solidifies relationships - especially immediate, personal attention when they call and quarterly proactive rebalancing touches for anything over 100k. And you get referrals. Took me too long to figure it out.

182   13.6M

Still opening and losing approx. the same number of accounts each month.  This has been the trend for the past few months.   I'm not nervous about this trend just yet.     I do feel like i'm walking up the "down" escalator at times!

Bonds 754

Glavine 299

Arod 499

Pretty exciting huh?

Scrim

Scrim:

What has worked for you as far as branch training?

Does the bank require x number of referals per employee?

My referrals are slow and was wondering what others in the bank channel do.

I have been in this same one branch for almost three years now.   I'm not proud to admit that I do almost zero branch training.   When I used to do it I really felt it had no/little impact so I've concentrated on building my business mostly by myself.  

There are no goals set for referrals anymore because that was a fruitless effort as well.

Mind you, there is one employee of the bank branch who has been here 25 years so she knows everyone.   I don't push her at all because I need to keep things friendly between us.   It's worth it for the few referrals she gives me and for her contacts.

scrim

You're doing a good job, but the main reason you keep losing accounts could be that other advisors have a bigger arsenal to fight with................

I worked at a bank for 3 years, and the "lack of trust" they put in expereinced advisors like me was staggering...........

We only had one B share VA to sell, 3 proprietary fixed annuities, 8 fund families, and one wrap product at 1.15 plus mostly A share expense ratios............

Refering to "gross production or revenue"... do you then get a percentage of that depending on the product you sell- how does that work exactly and what's your cut?

Hey Scrim,

I think your progess reports each month are a great teaching tool.  Thanks!  I hope you don't mind but I took the liberty of throwing your past asset updates into Excel and pasting them below. 

You have WAY too much time on your hands bud…

Wow Scrim,

You need to fish for bigger fishies.

[quote=blarmston]You have WAY too much time on your hands bud...[/quote]

I hear ya blarmston.  But, it took about 15 minutes, and I thought it would be worth seeing.

Good stuff Analyst.

[quote=Bobby Hull]

By putting that together, you couldn't be more gay, even if you changed your name to "cLoser."

[/quote]

I know, I know.   It was pretty bad, wasn't it...

[quote=pretzelhead]

Wow Scrim,

You need to fish for bigger fishies.

[/quote] I hear ya!

I work in a very middle income area with mostly blue collar, small biz owners.   Much of their net worth is tied up in their businesses.    I'm in a good spot if/when they cash out.  

The average rep in my program has an avg. account balance of around 90k so I'm not that far off.

I think what is happening is that I am opening fewer new accounts but my average account balance is rising as I focus on additions.

scrim

[quote=scrim67][quote=pretzelhead]

Wow Scrim,

You need to fish for bigger fishies.

[/quote] I hear ya!

I work in a very middle income area with mostly blue collar, small biz owners.   Much of their net worth is tied up in their businesses.    I'm in a good spot if/when they cash out.  

The average rep in my program has an avg. account balance of around 90k so I'm not that far off.

I think what is happening is that I am opening fewer new accounts but my average account balance is rising as I focus on additions.

scrim

[/quote]

In the first 14 months of this 28 month period, you were raising an average of $550,000 a month in new assets, in the second 14 months it's down to $292,000.  And the further along you go down the path, the more the monthly average falls.

I guess the new larger account additions aren't making-up for the smaller ones you were generating in the beginning.

[quote=Analyst][quote=scrim67][quote=pretzelhead]

Wow Scrim,

You need to fish for bigger fishies.

[/quote] I hear ya!

I work in a very middle income area with mostly blue collar, small biz owners.   Much of their net worth is tied up in their businesses.    I'm in a good spot if/when they cash out.  

The average rep in my program has an avg. account balance of around 90k so I'm not that far off.

I think what is happening is that I am opening fewer new accounts but my average account balance is rising as I focus on additions.

scrim

[/quote]

In the first 14 months of this 28 month period, you were raising an average of $550,000 a month in new assets, in the second 14 months it's down to $292,000.  And the further along you go down the path, the more the monthly average falls.

I guess the new larger account additions aren't making-up for the smaller ones you were generating in the beginning.

[/quote] I attribute this to a few things:

1) I used to cover three branches with about 100M in assets.   I purposely cut my circuit down to one branch with about 50M.

2) In the first year or so hardly anyone took any distributions from their accounts.   Now that I'm a few years in, I am losing some accounts through attrition AND some of my clients are taking distributions.

3) I have become a tad more complacent.

My average new assets coming in per month are about the same but the outflows which at one time were negligible are now much more significant.

Thanks for the analysis.

Scrim

Makes sense. 

Thanks again for all the previous posts and information. 

$70,000 a client in a FEE (I mean WRAP) account?

Maybe your client's other advisors are talking about aggregating assets using breakpoints, and you're losing them through attrition that way?

In the "old days", if they didn't have $100K or more, we were NOT ALLOWED to put them in a fee account........

Make sure you can defend the internal costs of your bank's portfolios.....if the market gets choopy, folks will be sensitive to paying 2% a year for wrapped funds............

[quote=bluestars80]

$70,000 a client in a FEE (I mean WRAP) account?

Maybe your client's other advisors are talking about aggregating assets using breakpoints, and you're losing them through attrition that way?

In the "old days", if they didn't have $100K or more, we were NOT ALLOWED to put them in a fee account........

Make sure you can defend the internal costs of your bank's portfolios.....if the market gets choopy, folks will be sensitive to paying 2% a year for wrapped funds............

[/quote] I'm not sure I understand the rationale.  It would seem to me that the more assets you have in a wrap account that would make the argument for A shares stronger.    So the smaller accounts would be in wrap, not the larger ones.

Regardless, I'm comfortable with my practice because the 1-5-2.1% "ALL-IN" fees are in line with most other firms for ongoing advice.

scrim

[quote=joedabrkr] [quote=scrim67][quote=Analyst][quote=scrim67][quote=pretzelhead]

Wow Scrim,

You need to fish for bigger fishies.

[/quote] I hear ya!

I work in a very middle income area with mostly blue collar, small biz owners.   Much of their net worth is tied up in their businesses.    I'm in a good spot if/when they cash out.  

The average rep in my program has an avg. account balance of around 90k so I'm not that far off.

I think what is happening is that I am opening fewer new accounts but my average account balance is rising as I focus on additions.

scrim

[/quote]

In the first 14 months of this 28 month period, you were raising an average of $550,000 a month in new assets, in the second 14 months it's down to $292,000.  And the further along you go down the path, the more the monthly average falls.

I guess the new larger account additions aren't making-up for the smaller ones you were generating in the beginning.

[/quote] I attribute this to a few things:

1) I used to cover three branches with about 100M in assets.   I purposely cut my circuit down to one branch with about 50M.

2) In the first year or so hardly anyone took any distributions from their accounts.   Now that I'm a few years in, I am losing some accounts through attrition AND some of my clients are taking distributions.

3) I have become a tad more complacent.

My average new assets coming in per month are about the same but the outflows which at one time were negligible are now much more significant.

Thanks for the analysis.

Scrim

[/quote]

Scrim...

ANALyst is a piker with too much time on his hands.  I don't even think he's in production for what it's worth....
[/quote]

Hey Joe!   I was just trying to learn from his awesome posts and figured since I had the info I might as well post it.

183 and 13.7M

Here is my fantasy football team....I had the sixth pick in a 12 team league:

We start 1QB 2RB 3WR 1TE 1K 1Def/Specials

Rivers Romo

Addai, M. Barber, Turner, M. Bell, Dorsey, M. Morris

Holt, D. Jackson, Jennings, Hester, Kennison

Gates

Scobee

Bears

Super Bowl Prediction  Chargers vs 49ers...Chargers win!

scrim

191  14.8 million.

Scrim, tell us what your balance is tomorrow after your fund prices update tonight…

Scrim…what AUM fees are you earning?

It’s about 1.4% give or take.

I ended 2007 with 191 accounts and 14.4M annuitized.

Scrim, sounds like you’re building it right.  Rock on!

184  13.0M

Scrim, as you know, I enjoy charting your progress along with mine and I have a question and am observation you might find useful.  I’m most curious as to the reason your overall account numbers dropped almost 4% net in the span of two months (3.67% assuming you didn’t add any accounts during the same timeframe).  While I made a lot of proactive phonecalls (starting on the evening of MLK day) and fielded several more, I have not lost one account in the last two months and only lost one fee-based client all last year (I have 60 accounts totalling $12.8 million out of my overall $36.3 million AUM).

180 accounts   13.3M

[quote=scrim67]180 accounts   13.3M

[quote=scrim67]180 accounts   13.3M

[quote=Broker24][quote=scrim67]180 accounts   13.3M

Exactly the case.   About half my book is in advisory accounts.  The other half is money markets, mutual funds and a handful of fixed annuities.

Makes sense.  Still, 43K on a 26mm book is pretty impressive.  That means you are aggressively growing your book.

Again, for full disclosure, of this 86k in two months, over 30k of it was my quarterly trail payout on my advisory business.   

Got it.  I am used to monthly trails, so that makes sense.

179  14.2M

[quote=scrim67]179  14.2M

Scrim, I think that’s great.  (I agree about the digressions).  It sounds like you are making some good progress toward your goals and have gotten out of your slump.

The beautiful thing about this business is that you can do business the way that you feel is best.  Whether you take a 4.5% upfront commission or a 80bp or 100bp trail on a VA, it’s your choice to do what’s best for the client and your business, in that order.

In my view, building an annuitized business over the long term is the way to true wealth.  It is your salary, something that you can count on.  You’ll have transactional business, too, and that’s a bonus.  My book is about 80% managed money and I’m very happy with that ratio.  That being said, I know that I’ve given up a tremendous amount of business because I don’t focus on VAs and income planning.  It is one of my goals this fiscal year to fix that.

Best wishes, and just keep firing away.

Thanks for the kind sentiments.   This thread is so darn long I wasn’t sure what “digressions” you were referring to.

177  13.4M

172  12.6M

Scrim, you’re a brave man to post numbers in a tought market, and my hat is off to you on the YOY iprovement.  I’m personally tracking just a tiny bit less than last year (-3%), but with any luck, I hope to end the year ahead by 5% or so…certainly not what I’d planned, but that’s life.  My question for you is, if your fee business is down and you are tracking up 25%, what is making up the difference…VA’s? …seriously, man…I’m curious…

Scrim - bump for an update.

I was just thinking about this thread today.

Still interested in your update…

Yep,

152 accounts  8.6 M

Whew…40% drop since June 1?  Thats one hell of a learning experience!  Good luck with the recovery.

Yep, not fun.

Scrim,

I’ll update at the end of March for a quarterly update:

145 for 8.5m

140  8.8M

Scrim do you include C share biz in your numbers ?

No, as my C shares business is almost nil anyway

Just an interesting fact as I am looking at my sales group's May numbers.   Out of all commissions  generated from our group about 80% were from annuity sales.

your very first post you mentioned another FA who was doing 5x what you were doing going for the big ticket items early, what is his story, is he converting those people to managed money now ?

Oh no,

Scrim, I’m curious what goes into the “trails” part of your biz.  I see back in April you had 8.5 mil AUM, but $25k of trails YTD.  At $25k per 3 months at 25 basis pts that would equal about $40 mil AUM to get that.  Is that also including wrap fees?

Ahh…thanks to Ron I just went back and saw your 1st post which mentioned you do (or did, in 2005) primarily wrap accounts, so I’ll assume that was what went into your “trail” calculations.

My overall production is trending about 30% less than 2008 but I'm hoping this is just a one year blip that many other reps are experiencing.

135  and 9M

You are charging 1.4% to wrap funds?

That’s not actually that high compared to most mutual fund wrap account programs I’ve run into.  I’ve spoken with some prospects that said their wrap fee is north of 1.5%.  One, who is now a client, said his was 1.75%. 

Seems about average from what I have seen also. Highest I saw was 2.25%, lowest 1.25%.

Do wrap accounts at wires and indys also include 12b1 fees and exp. ratios of the underlying mutual funds? 

How do you guys feel about discounting your fees?  For example, I have a client that has invested with me but only on stocks and bonds.  They have 500k at Vanguard and they are very “load / fee sensitive”  No chance I’ll get them with an A or C share but I’ve started to pitch advisory solutions to them and went in with a 1.25% total fee - .10 discount and I can go down another .10.  Good or bad move?

Discount it as much as possible. It’s a mutual fund wrap. The value you add is very little.







So, it’s 1.25% including fund expenses? That’s not bad, if so.

Yes, my wrap is approx 1.4% PLUS MF expenses so all-in is around 2.1% give or take

This is the best thread on the entire board.  Even after the bad months scrim is always cheery and upbeat and clearly loves what he does.  It’s easy to see why clients enjoy working with him.

[quote=iceco1d] Volt–Wrap accounts vary by firm (not by channel). Some payout 12b-1 fees to reps (mine does). Some firms just pocket them. Other firms rebate them to the client.-Wrap account fees NEVER include the expense ratio of the fund, ETF, CEF, ETF, etc. or whatever the underlying investment is. The “wrap fee” is exclusively the fee charged by the advisor.-Discounting and the prudence of the practice varies. My firm doesn’t allow it, so it doesn’t matter. Most FAs will say not to compete on price (which I agree). But when you are new, and you need the assets, I’d be inclined to say, “whatever it takes.” When you get $50MM under management, you can tell your discounted clients that you are raising their fee (for whatever reason). If they don’t like it, they are free to move. In the meantime, losing a client over 10 or 20 bps doens’t make sense IMO.

[/quote]



ice - I think volt knew this. But that’s what he tells the prospects.



volt - you have to start telling prospects that you’re going to be charging them over 2%. That way when a smart client figures it out, you won’t have to backpeddle.

Charging more than 1.25% to wrap funds is a rip off… you aren’t doing anything but rebalancing…

Scrim we’re due for an update.

That’s not actually that high compared to most mutual fund wrap account programs I’ve run into.  I’ve spoken with some prospects that said their wrap fee is north of 1.5%.  One, who is now a client, said his was 1.75%. 

Most that I see are traditional wrap accounts.  Mostly funds with some CEFs and maybe some ETFs thrown in for good measure.  Most of the time it's 1.5% or more. 

3rd quarter is over and i’m at 134 and 9.0M

I just got a steal yesterday myself.

[quote=OkieGolfer24]I just got a steal yesterday myself.

Just wrap.

[quote=scrim67]I still have never written a VA and if the past two years haven’t swayed my opinion I imagine nothing will.  

I mainly don’t sell them because they are complex and have too many moving parts.   My mantra has always been, if my client can’t fully understand what they are buying I won’t sell it to them.   Now, I’m not THE smartest guy in the world however my IQ is above 100 and even I cannot understand much of the mumbo jumbo mirrors and smoke in the contracts.

Hmmm…I’d study up on them.  Not saying they are essential for any portfolio, but if I was a client and an annuity was something that would help me accomplish my goals as a complement to a wrap account or SMA strategy I’d be disappointed if it wasn’t at least provided as an option.  You appear to be running your practice quite well, but I just thought I’d throw that in there as an idea. 

I try and run a clean practice here...VA's in my opinion are too shady.   I think there is a better chance ending up in arbitration involving VA's as compared to mutual funds and fixed annuities, CD's etc..

[quote=scrim67]

I try and run a clean practice here...VA's in my opinion are too shady.   I think there is a better chance ending up in arbitration involving VA's as compared to mutual funds and fixed annuities, CD's etc..

[quote=scrim67]

I try and run a clean practice here...VA's in my opinion are too shady.   I think there is a better chance ending up in arbitration involving VA's as compared to mutual funds and fixed annuities, CD's etc..

[quote=army13A][quote=scrim67]

I try and run a clean practice here...VA's in my opinion are too shady.   I think there is a better chance ending up in arbitration involving VA's as compared to mutual funds and fixed annuities, CD's etc..

2009 is now behind us thank goodness.

I should have clarified.

Scrim, Thanks for the update.  This is definitely the most inspirational thread on this board as you explained first-hand the problems we all have as our careers progress and how you fought through it and came out smelling like roses.

Good luck to you in 2010!

Scrim



what kind of payout do you receive from bank channel? Just curious.

Always look forward to reading these updates Scrim

My payout is about 30% give or take

Honestly, Scrim, I think your strength is tenacity. What percentage of walk-in business do you close?

Truthfully, I have no idea what percentage I close.

But it seems like your AUM should be higher in the wrap accounts. Are you under pressure to sell proprietary products? Wrap should be a lay down. I don't know your situation, but I've observed your progress.

Avg acct size is around 68k. 134 accounts seem like a lot of relationships to maintain. Do you find households having multiple managed accounts or is it mostly one per household?

[quote=Milyunair]

But it seems like your AUM should be higher in the wrap accounts. Are you under pressure to sell proprietary products? Wrap should be a lay down. I don't know your situation, but I've observed your progress.

[quote=Milyunair]

But it seems like your AUM should be higher in the wrap accounts. Are you under pressure to sell proprietary products? Wrap should be a lay down. I don’t know your situation, but I’ve observed your progress.

When I started my practice my current employer had just bought another bank where they used a 3rd party for their investments so in effect I started basically from scratch since there was no true book.

Annuities, especially in 2008 and first part of 09 where great tools to capture CD money and get a nice payout. I imagine that was what your colleagues where angling for. No wonder those books are upside down. Good for you for thinking long term and not in the moment.

3 years

Scrim - as other have said, this is a GREAT thread. You have certainly weathered some rough storms but you have done so with a great attitude and consistent work ethic.  I am curious, looking back, you mentioned possibly moving to a larger branch that had more assets. Did you ever make the move? Is that offer still on the table?

[quote=Curious1]

Scrim - as other have said, this is a GREAT thread. You have certainly weathered some rough storms but you have done so with a great attitude and consistent work ethic.  I am curious, looking back, you mentioned possibly moving to a larger branch that had more assets. Did you ever make the move? Is that offer still on the table?

Yeah but he is a bank FA doesn’t that make his progress and commentary irrelevant ?

Oh ok. That makes more sense.

Scrim, are you still around?  Would love to hear an update!

Scrim quit his life and moved to sell GM cars in China (novelty factor).

[quote=Mike Damone]

Scrim, are you still around?  Would love to hear an update!

[/quote]

+1 bump!

I’m baaaaaack

I took a hiatus from posting trying to grow my practice

Did I miss anything good?

Scrim

scrim67,
As basic sales go…It actually sounds like you are doing OK. 22 accounts in your first full year? Not bad. And, 4 more new ones too. Nice going! What this tells me is you have some sales skills. That’s a good thing. You can’t compare yourself to a guy “Who can sell ice to and Eskimo.” Some people have an amazing amount of natural talent. Some have zero! However, you appear to have some natural talent already. So, do what you are good at! And, expand your basic sale skills with a trainer. My favorite is Eric Lofholm. (I don’t get paid to promote him.) He is very good at teaching distinctions that can add value to your skills and business in an easy and practical way. In the meantime, do not be hard on your self. It is self defeating. Be proud that you have been as successful as you have. Remember, you get in life what you think about. Thoughts become things(Mike Dooley)…Be careful what you focus on!

Update is my book is at about 50m with about 16m in managed money