Waddell & Reed

Blow on the mirror.  If it fogs up and you don't get an offer you should give up on the industry.

W&R is a resume killer for those who are, or might become, qualified to be in the big leagues.

On the other hand, if you don't have what the big leagues want, and probably never will, W&R is not a bad place to learn to flog product.

But hear me out, it is damn near impossible to parlay Waddell and Reed into a future move to Smith Barney.

Everybody considering this industry should listen for a clue.  Pay attention to the licenses that are going to be required.  If you're told that you'll be expected to get a Series 6 ask why they don't ask you to get a Series 7.

You'll probably hear that all you need to sell what they sell is a Series 6. That's screaming, "Limited Product Line!" and you're not going to be happy there in a year or less.

If you're told that they want you to get a Series 6 right away and that they will sponsor you for a Series 7 later you're in a place that is going to want you to sell to your friends and family right away--with full expectations that you won't be able to do much more than that.

The reality is that any firm that does not expect their representatives to have a Series 7 license cannot possibly be a full service firm.

That is not to say that all firms who requre Series 7 are full service firms either--just that it is impossible to be a full service advisor without a Series 7.

I may need to seek professional help, because I am going to agree twice in a row with BEF.

W&R actually has some decent funds, which is a good thing because that's all you will sell there.  Proprietary funds are bad enough in general (just ask Morgan Stanley or Ameriprise), but you dramatically reduce your viability as an adviser if you can only sell your own funds.

This may sound like no big deal, but good luck getting high-end clients with that restriction.  Even if you get a decent client, they will be tough to keep once I can explain the conflicts associated with proprietary funds.

Dude, you'll still put in 60+ hours at first as an FA, too. 

Being an analyst is not a bad gig.  I work with a number of Portfolio Managers who started as analysts and worked their way into that role.  Salary at that point will hit $115-150k + bonus/profit sharing, etc.  Just depends on where you'd like to be. 

And I agree with BEF - WDR is not what most would consider a top tier BD.

Ameriprise and Waddell Reed are resume killers.  And they are right, anyone can get an offer.  You need to go to a quality firm with a quality training program.  Start pursuing the reputable firms for offers.

thanks for the info guys, not exactly the news I wanted to hear, but its a good thing I heard this before I got into deep.

[quote=Proton]

I may need to seek professional help, because I am going to agree twice in a row with BEF.

W&R actually has some decent funds, which is a good thing because that's all you will sell there.  Proprietary funds are bad enough in general (just ask Morgan Stanley or Ameriprise), but you dramatically reduce your viability as an adviser if you can only sell your own funds.

This may sound like no big deal, but good luck getting high-end clients with that restriction.  Even if you get a decent client, they will be tough to keep once I can explain the conflicts associated with proprietary funds.

Not a resume killer IMO, just hard to move clients when they are all stuck in prop. products. WR funds are hot this year and last. Every MF has a time, well most do.

Waddell and Reed is trash.  I understand their funds are doing well, and they will try and sell you on that when you interview, but what happens when these funds aren't hot anymore?  Who's to guarantee that they will have other hot funds to offer, and as stated above, that is all you will be allowed to offer. 

The main reason I speak so harshly of them is this: I decided about 2 months ago to try and break into the industry as a FA myself.  I had a fantastic interview with some great people at WDR (only there because my resume wasn't getting responses from the big boys like MS, UBS, SB, etc..) and was sold on the training and support they offer, thinking I could learn there, then move on.  I took the tests, scored well, and was never called back.  I called and the woman I interviewed with and she claimed she called and left a message, and there was some questions about the test she wanted to clear with the testing company.  She said she would call back within the week, with or without her answers.  Never called.  I called and left 2 different messages and am still waiting for the call back from that poorly managed and pathetically unprofessional organization who claimed they really liked me and seemed excited to move me along to the hiring process.

Lucky for me, I got smart in the last 2 months, got on the horn and sold myself to the big companies, and have unoffically been offered a position with one of them, pending my background check.  I would suggest you do the same if you are really interested in becoming a FA, since you will have to put in 60+ hrs/wk no matter where you start.

Just to clear things up BEF you do need a 7 to work at W & R if you are starting from scratch in the industry.  The biggest issue is the limited product selection.  To compound matters they don’t have any fee based capabilities as in 0.  What everyone has said so far is very accurate.  I know  because a good friend of mine started and is still there.  If you think that you can land any kind of HNW client then you would probably be better finding a LPL or Commonwealth office looking for rep to come in and learn.  You would just have to make sure that you got solid training.  Another huge drawback at WR is your insurance situation.  Their strategic partner is Nationwide not my idea of a top tier insurance company.  And for a GA they run their business through Bisys which from what I understand can be quite a zoo.  Hope that helps anyone looking for some info.

[quote=joedabrkr] [quote=Proton]

I may need to seek professional help, because I am going to agree twice in a row with BEF.

W&R actually has some decent funds, which is a good thing because that's all you will sell there.  Proprietary funds are bad enough in general (just ask Morgan Stanley or Ameriprise), but you dramatically reduce your viability as an adviser if you can only sell your own funds.

This may sound like no big deal, but good luck getting high-end clients with that restriction.  Even if you get a decent client, they will be tough to keep once I can explain the conflicts associated with proprietary funds.

[/quote]


Having said that, if you can be a top quartile/decile producer at @&R or Amerprise or just about anywhere for a few years, you'll most likely be able to step up to a desk at a wirehouse when you're ready.  (presuming, too, that you have accumulated sufficient assets and a clean u-4).  Branch managers will be happy to take a producer with a proven track record.


[/quote]

Good point. AGE has a history of taking brokers from penny stock firms.

I’m not an FA, but I have some experience in dealing with W&R.

They invited me to interview, and I accepted.  The day of the interview, I get a call from the guy who says "hey, I never got a confirmation call from you, so I’m gonna assume you either don’t want the position or couldn’t make it."

I was never told I had to give a confirmation call.  Supposedly his “secretary called me and told me to call the week of the interview to confirm,” which never happened.

So anyway, I let that go and rescheduled for the next week.  We agree to meet in a parking lot outside of Bennigans, cause he was passing through my area.  I wait in the parking lot for 30 minutes, call his cell twice, called again and left a message saying I was there waiting and wondering where he was.  He never even called me back to explain anything.  Just cut off communication.

It was very unprofessional on his part and sure gives me a bad impression of his company.

   Just to clear up the misinformation, you MUST obtain the insurance license, series 7, and the series 66 to work for Waddell & Reed.  They carry over 50 non-prop funds (looks like all but Vanagard for some reason).  They sell a full line of insurance products, and 90% of the brokers on this forum hate them.  It's kinda like in high school when all the jocks pick on the nerd, and everyone knows how that story plays out over the long run.  Granted they are not upper-echlon in the business, but from a fundemental stand point W&R is a very efficiently run company. 

Efficient for them as a company.  I am not so sure I would say they are efficient for a FA.  Then again if you are planning on just getting prospects that are middle class you can probably do good.  If you ever plan on getting big clients though you will find out how tough it will be with them.

   Well, being only 24 it is going to be hard to get "big clients" any place you work.  No, Waddell and Reed is not even in the top half of brokerage firms and they do have limitations on what they offer, and no one has heard of them.  For me though it's a start, it gets me out of the retail world were I sold Lawn Mowers for a living.  I do not plan on being at Waddell forever but I am thankful that I have this opportunity now. 

http://www.waddell.com/jsp/index.jsp?top=8&side=4&in ner=1&subinner=0&supersub=0&pagetitle=Compensati on&wdrid=waddell

They advertise their frequent use of c-shares on their Careers>Compensation page. Bad company.

[quote=WADRED]

   Well, being only 24 it is going to be hard to get “big clients” any place you work.  No, Waddell and Reed is not even in the top half of brokerage firms and they do have limitations on what they offer, and no one has heard of them.  For me though it’s a start, it gets me out of the retail world were I sold Lawn Mowers for a living.  I do not plan on being at Waddell forever but I am thankful that I have this opportunity now. 

No, he would have had to own his own lawn mowing biz for us to be interested.

Joe that was too funny.       Seriously though at least he is in the industry and started on the right direction.

[quote=DodgerDraftpick]Joe that was too funny.       Seriously though at least he is in the industry and started on the right direction.[/quote]

The right direction would be when he posts that he’s LEAVING W&R to go just about ANYWHERE else…

Get your jokes in while you can, give me five years and we will see who is laughing.  I know I am the butt-end of all the forum jokes right now.  Just keep bringing them, it just fuels the fire I have to not only make it, but to be the very best at what I do.  Just as I was the top Lawn Mower salesman, and graduated Magna Cum Ladue, I plan to be at the top of this industry. 

[quote=WADRED]

Get your jokes in while you can, give me five years and we will see who is laughing.  I know I am the butt-end of all the forum jokes right now.  Just keep bringing them, it just fuels the fire I have to not only make it, but to be the very best at what I do.  Just as I was the top Lawn Mower salesman, and graduated Magna Cum Ladue, I plan to be at the top of this industry. 

completely understand and agree!

[quote=WADRED]

Get your jokes in while you can, give me five years and we will see who is laughing.  I know I am the butt-end of all the forum jokes right now.  Just keep bringing them, it just fuels the fire I have to not only make it, but to be the very best at what I do.  Just as I was the top Lawn Mower salesman, and graduated Magna Cum Ladue, I plan to be at the top of this industry. 

[/quote]

Not to worry, Wadred.

Edward Jones is the butt of all the jokes in this industry!

I know I am the butt-end of all the forum jokes right now.  Just keep bringing them, it just fuels the fire

Just remember, something like 75% of Americans who leave their jobs - blow out their 401ks, they take a taxable distribution and spend the money.

The average retiree, at retirement age, has about $125,000 in their 401k, if they have one.

Do you think a lot of people need your help? Do they care where you work or who your broker dealer affiliate may be?

 Most of the complaints here are about the services and costs of a particular broker dealer affiliate. A downtown broker is no better than a strip mall broker. This has been proved time and again, in a myriad of ways, for anyone who is paying attention.

Enjoy every minute of this wonderful career, and when you're not havnig fun, make some adjustments.

I wonder why wadred continued posting when he clearly either (A) ignored our advice, or (B) was unable to get a position at a better firm.  We explained in detail the capacity of the larger firms compared to W&R.  The broker can ONLY DO SO MUCH.  If they provide great returns, then good for them, but are they utilizing all the tools they have access to in order to develop an allocation that fits each clients individual needs?  If you want to deal with high net worth individuals, you are a fool not to look at the wirehouses, no matter how good or bad you think you can be as a broker.  You offer the same funds as W&R, as well as offering managed futures, structured investments, IPOs, and so much more.  I got a bad taste in my mouth for W&R when I interviewed with them (looking into my options) and was asked why I would want to sell other funds when their's are sooo much better.  In the end, the arguement is not against W&R as much as it is FOR the larger firms.  I hope this finally makes sense to you wadred.  I don't think the larger firms are the end all, but to act like W&R offers the same things and provides someone entering the industry with the same opportunity for success as a wirehouse is just plain ignorant. 

[quote=jemstar]thanks for the info guys, not exactly the news I wanted
to hear, but its a good thing I heard this before I got into
deep.[/quote]



Try finding a local RIA, and see if you can work with them as an inhouse analyst / portfolio manager.



I’ve been trying to find a protege for the longest time so I can focus
more on prospecting, but even after you assign people to read Klarman’s
margin of safety, a lot of people still don’t get value investing.

Well said Looney I couldn't agree more.  Like I said earlier they  have zero fee based options.  That to me is a major drawback although I guess some people might not care.  I actually think he would be better off starting in a good Indy office like a LPL or Commonwealth working with an older planner looking for a protege.  Just my opinion though.

No fee-based options?????  You all "know" W&R is not as "good" as every other firm in the industry, but at least get your facts straight about them.  They have plenty of fee based options. 

http://www.waddell.com/jsp/index.jsp?top=8&side=4&in ner=1&subinner=0&supersub=0&pagetitle=Compensati on&wdrid=waddell

.

Getting fees for doing a financial plan.... and having a fee-based platform for SMA or MF NAV accounts are.... uh.... different...

WADRED- Cmon man get in the game…

  Correct me if I am wrong here as I have just passed the 7 and am studying for the 66, so I have no actual experience yet.  Here is a direct quote from W&R website.

Service Fees
Because our strongest emphasis is on first-rate client service at Waddell & Reed, we tie a portion of your income to service. Also called "12-b1 fees" or “trails,” service fees are paid based on your clients’ assets under management. The larger your practice, the more time spent on client service, the higher the service fee.

This is not just a fee for a "Financial Plan" this is a fee for actual products sold, and is a trailing fee.  Like I said I don't know how this works yet so don't completely blast me.

It works like this, Wadred.

If the mutual fund that you're selling carries a 25 basis point trail, your B/D gets 1/4 of 1% a year in "service fees".  If you did, say, $1 million of ABC Funds with 25bps trail, your B/D would receive $2500.  If you get a 60-40 split, that would give you $1000 pretax net.  If the value of the fund goes up, so does your trail.  I don't do much fund business any more, but if memory serves, most fund families recalculate quarterly.  (I might be mistaken here...if so, would one of you who does MFD business help me out here?)

[quote=WADRED]

  Correct me if I am wrong here as I have just passed the 7 and am studying for the 66, so I have no actual experience yet.  Here is a direct quote from W&R website.

Service Fees
Because our strongest emphasis is on first-rate client service at Waddell & Reed, we tie a portion of your income to service. Also called "12-b1 fees" or “trails,” service fees are paid based on your clients’ assets under management. The larger your practice, the more time spent on client service, the higher the service fee.

This is not just a fee for a "Financial Plan" this is a fee for actual products sold, and is a trailing fee.  Like I said I don't know how this works yet so don't completely blast me.

[/quote]

How can that be.  Are you a liar or did you say you passed the 7.  And how did you pass the 7 without a sponsor?

Go Google 12-b-1 fees and leave us alone.

Whoa vbrainy just because you are ignorant doesn't mean you have to call me a liar.  Of course I am sponsored, by Waddell & Reed.  I have my insurance license and my series 7 passed, will take the 66 within the next 2 weeks.  I know what 12-b-1 fees are, I just didn't understand why some people were calling them financial planning fees when they are not.  It doesn't make sense to say W&R doesn't have a fee-based compensation when they clearly have 12-b-1 fees.  Man, I am feeling more confident in my ability to succeed in this industry, with people like vbrainy I guess a caveman can do it. 

[quote=WADRED]

....... with people like vbrainy I guess a caveman can do it. 

[/quote]

Good one

WADRED-

You can't be serious.  Anyone that sells loaded MF's gets 12b-1's.  It's not "fee-based" business as the industry knows it.  These are referred to as "trails".  And the 25bps you get might pay your monthly mortgage in a few years, but it isn't going to sustain you unless you have tons of MF assets under management.  You're going to earn commissions and get a sliver from 12b-1's going forward.  Not sure what those Planning Fees will amount to, though.

Seriously, you wouldn't get blasted if you weren't so arrogant.  There's nothing wrong with not knowing the answers yet, but don't claim to be the next coming of Moses in a suit.

WADRED, This is like asking the Chevy guys if you should buy a Ford.

You will need a 7, as you stated.  This folks are misinformed. 

There are 51 funds shown on my sheet dated 9-6-06.  I sell Franklin, American and of course W&R funds.  They ALL have advantages and disadvantages.  Remember, however, W&R is a fund company, something the brokers don’t understand, including myself until I actually started here.

We don’t hire everyone.  I hired 2 last year.  I was required to hire 4.  There is pressure for hiring, but all firms are this way.  I see all the brokerage and insurance guys (and I know most of them personally), at the college career fairs.  We are in a college town and have no shortage of resumes.  I refer many of my rejects to some of these other folks.

You can work with anyone here.  You’re not limited to the “high net worth” prospects all the brokerage guys are after.  Although we have FA’s specializing in that as well.  I work mostly insurance on business and estate cases.  Many of my clients have brokers for their investments.  That does not bother me in the slightest.  It’s not me they call when the markets are down.

Since we are a fund company, there are the opportunities to go the analyst and portfolio mgr route as well.  You really need to think about where you want to go, however.  Whether W&R or any other firm, this is not a job you come in and see how it goes for a year or two.  Those 60 hour weeks will still apply, but you will really start to see the payoff in the 3-5 year range.

Business is done different, but I am a value investor.  If you come from a brokerage you will scratch your head.  Being a value investor and having the ability for input, the things coming in the near future look great.

Finally, payouts are better, costs are lower and your clients are yours.   You are an independent business person and this also gives much more flexibility.

Hope this helps and let the bashing continue, but don’t worry about it.  Do what you feel is bets for you.  Just remember the difference between doing research and working with people.

WR I am going to be very nice to you to get you out of the cult.  One you say you do insurance.  My question for you is you like to use Nationwide one of the most sued insurance companies FYI.  Or do you just push all your stuff through Bisys and let them take thirty percent off the top.  Next  payouts better                           .  Ok I am now done laughing I think. Let’s see how about I just throw out LPl at 90% compared to your 50%.  Yeah your payout is way better your right.  Next up the clients are yours, I don’t think so.  My friend who works there showed me a sheet he had signed because he got a bunch of house accounts.  In little letters on the very back the statement to this affect was these clients are the sole property of WR and if advisor leaves the firm he can’t contact the clients period.  A few months ago a my friend tried to land a big account and couldn’t because WR had no fee based.  They did have a mutual fund wrap program called MAP or SPA  I don’t remember which.  Anyway WR pulled the program to revamp it and it hasn’t come back yet.  You can compare that to about ten different fee based platform LPL has and there is no comparison.  Lastly look up Stephen Sawtelle.  Since both of you have shown an incredibly lack of due dilligence I will paraphrase for you.  Sawtelle had over 2800 clients division manager top dog in the firm.  Hires young advisor because he was grandson of client.  Advisor is literally Satan’s spawn banned for life from the industry basically stole clients money.  Sawtelle warned WR of problems.  WR ignored it.  When the sh was about to hit Sawtelle is suddenly the scapegoat all his clients get letters smearing him and years and millions of dollars later in attorneys fees Sawtelle is awarded the largest ever arbitrage award at 27 million.  Thats 27 million from WR because they tried to smear his name.  This was their number one so you just go on believing in your Oz, maybe the Tin Man will appear for you.

Maybe this is why this industry is looked at as if we were all car salesmen.  Everyone is always out for #1, and a young college student comes in and asks for some advise and everyone just throws the company under the bus.  I would love to hear back from the same guy now and see how he is doing.  Just to understand the facts. W&R does offer their MAP product (Managed Allocated Portfolio) which includes a financial plan and asset weighted portfolios, which offer the advisor a fee based product.  They also offer a SPA product that works well also. 

I have just started reading these forums and it does seem like there are a lot of “top dogs” on here working for the “big name” firms, or at least claiming to be.  I recently passed my 7 and 66 and have been working with W&R for a couple months now.  I would ultimately like to see my business model as fee-based only and W&R does have a “choice” platform that can allow for this.  Also if you do a certain amount of plans you can become variable fee licensed, and charge whatever fee you feel is appropriate.

As for not being a “top-tier” BD, I think that I will ultimately be working with mostly “middle-class” Americans.  We are talking rural Kansas here people and I don’t think a lot of your “techniques” will work out here.  Cold calling is basically out.  We are not talking 10-20 mil a year in production.  I just don’t really see that as being possible right now.  A lot of it is developing relationships and getting your name out in these small towns.  It would be nice to try and compete for some bigger companies 401ks…I haven’t really found a niche yet.

It ultimately comes down to the individual advisor.  Don’t be hatin’

[quote=danoodle]

I have just started reading these forums and it does seem like there are a lot of “top dogs” on here working for the “big name” firms, or at least claiming to be. I recently passed my 7 and 66 and have been working with W&R for a couple months now. I would ultimately like to see my business model as fee-based only and W&R does have a “choice” platform that can allow for this. Also if you do a certain amount of plans you can become variable fee licensed, and charge whatever fee you feel is appropriate.As for not being a “top-tier” BD, I think that I will ultimately be working with mostly “middle-class” Americans. We are talking rural Kansas here people and I don’t think a lot of your “techniques” will work out here. Cold calling is basically out. We are not talking 10-20 mil a year in production. I just don’t really see that as being possible right now. A lot of it is developing relationships and getting your name out in these small towns. It would be nice to try and compete for some bigger companies 401ks…I haven’t really found a niche yet.It ultimately comes down to the individual advisor. Don’t be hatin’ [/quote]



Danoodle - wow you’ve been out two months and you think you know a lot about how things work?



Take the W &R BS and go peddle it somewhere else. I’ve seen people’s lives destroyed by Waddell and Reed brokers.

Why is it that everyone who speaks positively about W&R is either recruiting for them or only has 1 post?

Peddling products…that’s all we do isn’t it?  I, for one, am focusing on the financial planning aspect of this business.  My fiduciary duty is to my clients.  I am building my business around the book raving fans.  Yea, maybe I am green and naive, but I’m doing the best with what I got and doing the right thing for my clients.  I can sleep at night.  I am positively impacting my clients’ lives.  That’s what’s keeping me going. 

This forum is just one big troll/flamefest anyway.  Just looking out for number 1 huh guys?  Can’t show a little constructive criticism?  Flame on…

U R not a fiduciary dude. If your bosses catch you telling potential clients that they’ll fire you on the spot. Your duty is to YOUR EMPLOyER, in an agency-employee relationship.

[quote=MinimumVariance]U R not a fiduciary dude. If your bosses catch you telling potential clients that they’ll fire you on the spot. Your duty is to YOUR EMPLOyER, in an agency-employee relationship. [/quote]

What are you talking about?  I am technically self-employed.  I have my 66.  I do not work FOR Waddell and Reed.  I am 1099’d.  Get you facts straight.

And just for the record, all of us “new guys” are all “self-employed” and fiduciary liable with a 7 and 66.  Like I said earlier, it comes down to the individual advisor.  People are knocking W&R pretty hard, but I am simply “partnered” with W&R.  I have access to a lot of different funds, and could even make up some no load, etf filled portfolio and charge a percentage of the assets.  Like I mentioned earlier, my goal is eventually to become completely fee-based, and even pass off the insurance sales to someone else so there are no conflicts of interest.  I know I am green and just off the boat and whatnot.  I am just stating my plans and will work with what I’ve got.  Flame away

What is the starting compensation at WR?  Does it vary by market?  How competitive are the other IARs in the office, do you find yourselves stepping on each others toes? 

Rich, sounds like you might be new to the biz.  Forgive me if I am wrong.  Anyway, don’t worry about stepping on other FAs toes.  You will run into multiple “advisors” from the wirehouses, banks, indys, insurance co’s, regional firms, and so on.  It will be of no competitive advantage to choose a less recognized name because they have less brokers.  What I would say is that it can be a competitive disadvantage to work at a large firm becauase you will find prospects who are with your firm already (and maybe that’s more what you meant).  That is ofcourse why going indy has it’s perks.  You can compete against anyone.  Whether you like EJ, ML (I would steer clear of ML right now), W&R, MS/SB, UBS, Wachovia/Wells, LPL, RJ, a bank, and ins co (please don’t), etc., just do what’s right for you.

I am new, so I’m not offended.  I’m working at a company, where layoffs are impending, so I’m evaluating some different career options.  I have a friend who suggested that I look at Waddell Reed or Edward Jones.