Bonus Money Hits Tomorrow
In case you weren’t aware, the WS bonus money hits the AGE fc’s bank accounts tomorrow. Granted, it’s a percentage of what I could get at say Smith Barney or Merrill (two firms that fcs have left for in my area). However, with the messes over there right now, I am content to let the dust settle and see how it goes.
Buy!
take the check while you can and cash it.
All the brokerage firms are going to be hurting for a while. AG sold at the top. Was the stock bought for cash? If it was they do not look so dumb now.I have been thinking ever since the deal was done that Bagby timed it perfectly.
He sold us before all the subprime/housing noise hit Wall Street and Main Street.Congrats, guys & Gals. Enjoy that check and the six year contract that comes with it. That isn’t a judgment call, just a statement of fact. Please feel free to debate the legal merits of my opinion. It’ll distract you while the “new, combine firm” is organized. Best of luck not thinking about what 55-60% of your gross is worth.
[quote=YHWY]Congrats, guys & Gals. Enjoy that check and the six year contract that comes with it. That isn’t a judgment call, just a statement of fact. Please feel free to debate the legal merits of my opinion. It’ll distract you while the “new, combine firm” is organized. Best of luck not thinking about what 55-60% of your gross is worth.
[/quote]
I will enjoy…and sleep well knowing I can leave whenever I want…before AGE said it…Wachovia actually put it in writing!
Nest,
Good for you! You have a non-solicit agreement, in-writing, signed by you. I’m sure there won’t be any hang-ups if you decide to leave.
Hey YHWY, am I missing something? Can’t I pay the loan off and then solicit whovever I want? What “deal” did you sign up for?
GG,
I’m not saying you’re missing anything. I’m merely pointing out that some have signed a non-solicit agreement with certain contingencies. But, I am saying that, hypothetically, there are methods available to WB that could at least delay and at most penalize those who change Broker Dealers from here on out. (i.e. Your repayment check may be “held” for a period of time before licenses are released. Your communications with clients could be scrutinized as to when you first mentioned changing B.D.s (soliciting), etc) Will it happen that way? No idea. What I do know is WB doesn’t have my signature on anything.
I guess we will all have to wait and see if Wach is the devil…like those that have left have said…although somehow I know alot of happypeople at Wach right now…anyway, I am looking forward to more products and gettign paid for refering people for loans that I uised to do for free. Sure there are drawbacks like anything…but so far I see quite a few benefits. There are benefits of independence, just not enough to outweigh teh drawbacks for me…but to each his own, thats why there are so many choices out there…well at least for teh time being
wwwaaaaa, Mr. Negative is back ..."What I do know is WB doesn't have my signature on anything". So what. Then y do you "care" so much? Sour grapes perhaps? 'Life is but a poor player that struts and frets his hour upon the stage and then is heard no more'. You are NOT in our position. Don't pretend to know or say that "you know".GG,
I’m not saying you’re missing anything. I’m merely pointing out that some have signed a non-solicit agreement with certain contingencies. But, I am saying that, hypothetically, there are methods available to WB that could at least delay and at most penalize those who change Broker Dealers from here on out. (i.e. Your repayment check may be “held” for a period of time before licenses are released. Your communications with clients could be scrutinized as to when you first mentioned changing B.D.s (soliciting), etc) Will it happen that way? No idea. What I do know is WB doesn’t have my signature on anything.
Enjoy the cash, guys/ladies. You should take part of that and dump it into bank stocks…they’ve surely got to be close to the bottom…
Hey, Shredder,
You are a good little worker bee. Keep it up.
As for myself, I am proud to be Mr. Negative regarding being slammed into a wirehouse involuntarily. I’m also proud to have researched the field and to have found that my services are worth WAY more than a wirehouse will pay me.
I look forward to hearing from you all the great details WB has provided that I have ignored or missed. What’s your job/office going to look like @ June 1, 2009? I know EXACTLY what mine will look like. Good luck to you and your obvious frustration.
Sure the merger was Involuntary…we didnt choose it…howver I have yet to see anything that has me running for the Door, Every WS Home office person I ahve met or interacted with seems to be an upgrade not a downgrade of what we had at AGE. The Financial Planning software, client web access, statements, research are light years beyond what we had. We are keeping Russell, PFA, CAAP etc etc. So I ask you where is the fire?
yHWY, I thought you had disappeared after your DS comment. I know your type. I see them once a week at branch meetings. I call them "the victims." Best way to deal with them is to ignore them because it's always the same. WWWAAAA..."the branch manager doesn't support me"=victim. "my sales asst sucks"=victim. "the back office doesn't support me..."=victim. " I don't know what the new firm is going to look like in 2009"=victim. "the reason I am only doing 310k is because of all of the above"=victim. "The victims" are more concerned with what's around them then what they can do to grow and prosper. Do I need to continue? I am sure that you will find your stride in the Indy world...only one problem, there's no one else to blame but yourself.
Meanwhile, back in the land of prosperity, abundance and positive attitudes, I like many others, will continue to work and grow my little "worker bee" business. When and IF this whole merger thing doesn't work to my advantage, I'll have plenty of options available. You see, I am not a victim in this whole thing.So did anyone pull the trigger today on investing now that we are flush with cash? Too bad American Funds can’t move up their cap gain payouts to accomodate my buys. There seems so much cheap stuff to pick from. Nice to have some cash, albeit not free and clear.
it’s tempting but…I’m going to wait till the AF cap gains distribution is done in Dec. W/ the WB/AGE merger the last thing I need is to pay more in taxes for 2008
YHWY======
Glass half full or half empty? You decide.From the what it is worth department…
I know of 4 average producers for AGE 300k that are looking at leaving after the new year...once the 401k profit sharing hits. They may qualify for a small production bonus in March, but are not sticking around for it. I think there are quite a few folks that are waiting for the dust to settle at other firms and will take the AGE 401k money and run...and investing WB money for a couple of months. Albeit...paying back the WB bonus bucks less any money they make....or loseNest Egg & Shredder,
I have two words for you: MARS & Stocks As for those on the outside, at anytime I could take a check from the competition that will payback my bonus x 3 or 4.. WB would have a nightmare on there hands if agreements were not honored as written.remember you will need to pay taxes on this money. I would only invest one years amount in mutuals or the stock market at a time unless you are very conservative. Money market CD’s or ARPS would be the best options. Also, for tax purposes maximize your 401k’s and if your wife works, have her maximize hers also. This will save you almost 40% on 15500 or 31k a year. Be prudent with the windwall and treat the money like you would a client.
All that cash is not really yours until it vest each year. I heard about a guy who went to MS in 2000 and put his bonus in tech stocks. He then was let go in 2003 and owed money to the company and to the IRS. I also knew another guy at another firm who did the same thing with options and tech stocks. He blew his account up and owed the company money in his account. he also owed part of his bonus back after he quit. I have no idea how it ended because he has disapeard??? I will add he was an a## and it could not have happened to a better person Just some ideas...I put some in Eaton Vance's National Muni at NAV yielding a tax-free 4.7, some in their tax-managed equity funds, and the remainder will sit in centnenial. I see clients dipping into these sorts of windfalls all the time (send me $1000 for this, send me $5000 for that). I will semi-pretend it aint there.
We are treating ours as if we never received it. Even put in a separate account.
As for the cap. gain distributions, I did a calculation and find that if you put it in most American funds, the cap gain distribution this year will be about 5%. With a 15% federal plus 3% (Illinois) the taxes will be about 1% of the investment. Since the market can move much more than that in a single day much less six weeks, I am considering investing now in case we get a christmas rally. Anyone care to challenge my thinking here?
Might I suggest a UIT? No cap gains to worry about. Van Kampen and First Trust have some nice ones. For IndyOne's earlier recommendation, they both have (I think) a financial sector UIT.We are treating ours as if we never received it. Even put in a separate account.
As for the cap. gain distributions, I did a calculation and find that if you put it in most American funds, the cap gain distribution this year will be about 5%. With a 15% federal plus 3% (Illinois) the taxes will be about 1% of the investment. Since the market can move much more than that in a single day much less six weeks, I am considering investing now in case we get a christmas rally. Anyone care to challenge my thinking here?
Id stay away from the Financial Sector UITs until there is some sort of uptrend. I think the subprime mess has a long ways to go, several of the larger companies dividends could be cut, and one thing I have learned…never get in the way of a runaway train.
Congrats. You’re all rich!
May I humbly ask: 1) Will your branch office be open in 16 mo.?
2) What will your compensation package look like?
3) What will WB’s policy be regarding money market funds for your valued clients?
4) At what production level will you be made to feel human under WB?
Enjoy that check!
YHWY++++++++Glass half empty? Half Full? You decide! ROFLMAO!!Congrats. You’re all rich!
May I humbly ask: 1) Will your branch office be open in 16 mo.?
2) What will your compensation package look like?
3) What will WB’s policy be regarding money market funds for your valued clients?
4) At what production level will you be made to feel human under WB?
Enjoy that check!
good move gordon, illinois rep, you understand. AGE sold at the top also.
The funny thing about WB is that they actually won the battle against BAC. These guys have been in a battle since they were NCNB and FU (both were NC based). BAC may have won the banking side but Wachovia killed them on the bank brokers and regular broker side. Maybe BAC will buy Merrill to win the pissing contest. Lastly, I am glad to see you are putting money in the american funds. It is amazing how they have performed giving their size. I have money there myself. Also, I am in NYC this weekend for my kids birthday so they can go to the american girl store. We are staying at a American Funds apartment.(my spouse works there).. What a company. Lastly, if you have young daughters, try to avoid the American Girl experience because it really is capitalism at it worse. This is why all the countries in the world hate us for our outlandish spendingVictim anyone? 1. More than likely...not just mine, most. 2. We'll know soon enough. By the way, even if AGE had remained independent there was serious discusion of going to some sort of "grid" and beleive it or not, the WS grid like system was right up near the top of the list. 3. Why are so many stuck on this issue? I have spoke with numerous WS reps and there are work arounds to this "issue". You buy AF or GS money market funds. Yes, it means that you or your FA have to 'manually sweep' them but what is so hard about that? 4. VICTIM!!! So far I so no indication that I won't "be emade to feel human". Look yHWY, you have obviously made your decision to depart, so be it. Sour grapes and that big chip on your shoulder will not help you in the long run.Congrats. You’re all rich!
May I humbly ask: 1) Will your branch office be open in 16 mo.?
2) What will your compensation package look like?
3) What will WB’s policy be regarding money market funds for your valued clients?
4) At what production level will you be made to feel human under WB?
Enjoy that check!
Yup, I’m a victim. My LPL office will be open for business on Friday. I will have 100% control over every aspect of my business and keep 92% of my money. My career is completely my own for ever after.
Wait, who are the victims here?? Denial ain’t just a river in Egypt, guys.
Thank goodness you’re finally leaving. It couldn’t come soon enuf for both you and all the rest of us “deniers”. I’ll alert Bagby and Danny of your immenent departure…Unfortunately I don’t think you can expect a call or a going away party.
[quote=YHWY]Yup, I’m a victim. My LPL office will be open for business on Friday. I will have 100% control over every aspect of my business and keep 92% of my money. My career is completely my own for ever after.
Wait, who are the victims here?? Denial ain’t just a river in Egypt, guys.
[/quote]
You have to his some pretty serious numbers to get the 92% payout. Even then, you will still not clear 92% because of ticket charges and retention on fee based programs.
Still, it’s a damn sight better than working for a bank, which is what Wachedwards is.
Best to you too, Shred (and others).
Just curious, what have you told your clients who ask about the merger? Do you read the canned script right from AGE-net, or just (honestly) say “I don’t know Mr. Jones.”?
The path of least resistance is always the immediately attractive path because it entails doing nothing. I don’t care what any of you do, but I will laugh at you to myself because your reaction to this merger has been that of scared children, with WB being your new step parent.
Once anyone does the math regarding indy vs.wirehouse, it immediately becomes a no-brainer, which is a great fit for some of you, apparently.
By the way, these chat sites are nothing but avoidance behavior. If you all used the energy you waste here in production, you wouldn’t care what someone like myself says or thinks. Over and out.
[quote=YHWY]Yup, I’m a victim. My LPL office will be open for business on Friday. I will have 100% control over every aspect of my business and keep 92% of my money. My career is completely my own for ever after.
Wait, who are the victims here?? Denial ain’t just a river in Egypt, guys.
[/quote]
I’m glad for you YHWY, really I am, but although you’ll have MUCH more control over your business than at AGE, I hope you recognize that you won’t really have “100% control over every aspect” of your business. LPL - or any other B/D for that matter - will certainly impose limitations both from a platform standpoint and compliance standpoint.
If you went full RIA with no B/D you’re 100% in control comment would be closer to the truth, although even there you have to deal with SEC regulations and platform constraints.
So much closer to 100% control, but not quite there. Still, it’s quite an improvement …
YHWY…
Good luck to ya man!!!! I will be in your shoes pretty soon and wish you the best! Im still waiting to grow the kahonies to pack up and leave. Keep in touch and lemme know how it goes!
Oh, and Joe, LPL’s 92% payout starts $250,000.00. (They pay everyone with my business mix at least 90%).
It is a given that overhead (including ticket charges) detract from the payout. You are spot-on that it absolutely KILLS even the old AGE, which is going bye-bye specifically because it “paid its brokers too much.”
I can't speak for others but I can give u the 3 sec. version (not that u care). "we are cautiously optimistic but will always act in your best interest if we feel this merger is not working". Easy, to the pt and leaves lots of leeway. By the way, who says we aren't doing anything?? Just b/c we choose to actually see what might happen instead of acting impulsively, doesn't mean that we are now locked into paralysis?? Believe me, our clients respect our decision just as much as you hope your clients will respect yours. If you really didn't care what any of us do, you wouldn't be here looking for confirmation of your actions. Just leave and see what happens. If you have great relationships with your clients you will be "successful", if not, you'll need that higher payout to survive and breakeven. Laugh all you want, I am the one in the driver's seat. Believe it or not, you are too. I have had this converastion with 2 other FC's in our office. What they choose to do is their business, my only comment was to evaluate all the options from a position of knowledge. That means that you actually have to see what the ground will look like at Wachwards. If I/you don't like the new structure, our decision is that much easier. Personally, I love this line: What do I have to be scared of?? I have NO IDEA what you are talking about?? I don't know what you should be scared of either?? I already have met w/ all the major firms in town, and the indy's, and I have a pretty good feeling that I am in the drivers seat. I have also spoke w/ "senior management" and Danny on 2 seperate occasions and have to admit that I am impressed, while still being cautious. Whether it is at WS, indy or w/ a wirehouse I am still in the drivers seat. With regards to "doing the math", there are many more variables than your simple division vs. addition element. I won't even touch on the production issue, the gap is too wide and deep.Best to you too, Shred (and others).
Just curious, what have you told your clients who ask about the merger? Do you read the canned script right from AGE-net, or just (honestly) say “I don’t know Mr. Jones.”?
The path of least resistance is always the immediately attractive path because it entails doing nothing. I don’t care what any of you do, but I will laugh at you to myself because your reaction to this merger has been that of scared children, with WB being your new step parent.
Once anyone does the math regarding indy vs.wirehouse, it immediately becomes a no-brainer, which is a great fit for some of you, apparently.
By the way, these chat sites are nothing but avoidance behavior. If you all used the energy you waste here in production, you wouldn’t care what someone like myself says or thinks. Over and out.
[quote=YHWY]Congrats. You’re all rich!
May I humbly ask: 1) Will your branch office be open in 16 mo.?
2) What will your compensation package look like?
3) What will WB’s policy be regarding money market funds for your valued clients?
4) At what production level will you be made to feel human under WB?
Enjoy that check!
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1. I Didn’t know the answer to that question when we were AGE!! Also wouldn’t know it if I was at ML, MS, RJ, SB etc etc…any firm can close a branch at any time…However we are the only branch in an affluent retire market for either firm, and lets just say the new CEO knows the market well…+ we have a Multi year lease in place.
2. Comp Package will be the same for the next year at least…that is more certainty then I have ever had at AGE…same would be true at any firm, all firms make changes yearly.
3. The current ploicy that has been in place for years w/ WB is that you can invest clients in a mulititude of MM MF’s…unlike AGE’s past policy that prohibited it.
4. No idea but if you produce enough that never matters.
Two words, nestegg: spell check.
Check it out sometime.
[quote=nestegg]
[quote=YHWY]Congrats. You’re all rich!
May I humbly ask: 1) Will your branch office be open in 16 mo.?
2) What will your compensation package look like?
3) What will WB’s policy be regarding money market funds for your valued clients?
4) At what production level will you be made to feel human under WB?
Enjoy that check!
[/quote]
1. Didnt know the answer to that question when we were AGE, wouldnt know it if I was at ML, MS< RJ etc etc…any firm can close a branch at any time…However we are theOnly branch in an affluent retire market for either firm, and lets just say teh new CEO knows the market well…+ we have a Multi year lease in place.
2. Comp Package will be the same for the next year at least…that is more certainty then I have ever had at AGE…same would be true at any firm, all firms make changes yearly.
3. The current ploicy taht has been in place for years w/ WB is taht you can invest clients in a mulititude of MM MF’s…unlike AGE’s past policy that prohibited it.
4. No idea but if you produce enough that never matters.
[/quote]
[quote=Morphius]Two words, nestegg: spell check.
Check it out sometime.
[quote=nestegg]
[quote=YHWY]Congrats. You’re all rich!
May I humbly ask: 1) Will your branch office be open in 16 mo.?
2) What will your compensation package look like?
3) What will WB’s policy be regarding money market funds for your valued clients?
4) At what production level will you be made to feel human under WB?
Enjoy that check!
[/quote]
1. Didnt know the answer to that question when we were AGE, wouldnt know it if I was at ML, MS, RJ etc etc…any firm can close a branch at any time…However we are theOnly branch in an affluent retiree market for either firm, and lets just say the new CEO knows the market well…+ we have a Multi year lease in place.
2. Comp Package will be the same for the next year at least…that is more certainty then I have ever had at AGE…same would be true at any firm, all firms make changes yearly.
3. The current ploicy that has been in place for years w/ WB is that you can invest clients in a mulititude of MM MF’s…unlike AGE’s past policy that prohibited it.
4. No idea but if you produce enough that never matters.
[/quote][/quote]
Yeah…my mind works faster than my computer does…its a problem! They need to build spell check into these forums lol!
Actually, 92% starts at $200K. I won't quite get to the 93% bracket, but I'm well into this one. Ticket charges, etc. cost me 4-5% off that. Still, a pretty good gig...Oh, and Joe, LPL’s 92% payout starts $250,000.00. (They pay everyone with my business mix at least 90%).
It is a given that overhead (including ticket charges) detract from the payout. You are spot-on that it absolutely KILLS even the old AGE, which is going bye-bye specifically because it “paid its brokers too much.”
Any concerns about health insurance costs going indy?
Well, they’re not cheap. My LPL quote went from $470-$740 per month for a family of three, depending upon what coverage level I selected, but I figure my net/net differential is about 30%, and on any respectable level of production, that gap will buy health insurance and still leave a fair sum extra in my pocket.
The extra money is nice, but that's not why I left.I recently left AGE for LPL and so far am thrilled with the decision. I need to change my screen name to something else, since I’m no longer Going. The insurance plan at LPL is pricier than AGE without question, but was a cost of doing business. The new insurance starts in January.
Have brought over about 85% of total fees/trails that I had at AGE in 5 weeks and only lost 2 of my top 50 with another 5 or so on the fence in my next 75 of total wanted. Sent letters to all clients, but no forms to the 80 C households, and only taking the ones that call me, besides friends. Cleaned up my book, lean and mean again, expecting to produce about 90% of trailing in the next 15 months (1 quarter for trails to get back on track). Left the retention, and AGE $ on the table. Will recoup in about 3 years. More importantly feeling more comfortable Indy now that I know how things look going forward. Should be able to recoup the 160% offer from SB (my 2nd choice) in about 4-5 years with no contract dangling over my head. Been a tough 5 weeks, wish I was able to post more during it, but just too much paperwork. Now able to breath a bit. For those on the fence hope this helps.
[quote=GoingIndy???]I recently left AGE for LPL and so far am thrilled with the decision. I need to change my screen name to something else, since I’m no longer Going. The insurance plan at LPL is pricier than AGE without question, but was a cost of doing business. The new insurance starts in January.
Have brought over about 85% of total fees/trails that I had at AGE in 5 weeks and only lost 2 of my top 50 with another 5 or so on the fence in my next 75 of total wanted. Sent letters to all clients, but no forms to the 80 C households, and only taking the ones that call me, besides friends. Cleaned up my book, lean and mean again, expecting to produce about 90% of trailing in the next 15 months (1 quarter for trails to get back on track). Left the retention, and AGE $ on the table. Will recoup in about 3 years. More importantly feeling more comfortable Indy now that I know how things look going forward. Should be able to recoup the 160% offer from SB (my 2nd choice) in about 4-5 years with no contract dangling over my head. Been a tough 5 weeks, wish I was able to post more during it, but just too much paperwork. Now able to breath a bit. For those on the fence hope this helps.
[/quote]
Welcome! PM me or indyone if you need any tips, but it sounds like you’re doing fine without us!
GoingIndy…congratulations. Like you, the turning point in my career was the day I decided my freedom wasn’t for sale…
...see you in Chicago...the turning point in my career was the day I decided my freedom wasn’t for sale…
What a great line - love it! Good on ya, mate!
I remember exchanging pm's with you several months ago when both of us were seriously considering leaving AGE after years of servitude. Now in retrospect that it is done for me at least...I can say that it was the best move ---> leaving the money on the table & walking away from the Wachovia deal. From my old AGE office about half the brokers jumped ship (so far) and we all went to separate wirehouses or like myself we went independent...recently we gathered at our old watering hole at 4:15 & every single guy that took the up front money from a competitor wirehouse had some reservations about their deal or was really really curious about independence when their contract is up. Best of luck to you in the coming year & keep up the good work.[quote=GoingIndy???]I recently left AGE for LPL and so far am thrilled with the decision. I need to change my screen name to something else, since I’m no longer Going. The insurance plan at LPL is pricier than AGE without question, but was a cost of doing business. The new insurance starts in January.
Have brought over about 85% of total fees/trails that I had at AGE in 5 weeks and only lost 2 of my top 50 with another 5 or so on the fence in my next 75 of total wanted. Sent letters to all clients, but no forms to the 80 C households, and only taking the ones that call me, besides friends. Cleaned up my book, lean and mean again, expecting to produce about 90% of trailing in the next 15 months (1 quarter for trails to get back on track). Left the retention, and AGE $ on the table. Will recoup in about 3 years. More importantly feeling more comfortable Indy now that I know how things look going forward. Should be able to recoup the 160% offer from SB (my 2nd choice) in about 4-5 years with no contract dangling over my head. Been a tough 5 weeks, wish I was able to post more during it, but just too much paperwork. Now able to breath a bit. For those on the fence hope this helps.
[/quote]
Welcome! PM me or indyone if you need any tips, but it sounds like you’re doing fine without us!
Glad I could be of help Fee.
Going indy involved some extra challenges for me because of some unique twists in my story. But it has been worth every bit of the work.
Thanks for your good wishes. I’m making some big new moves this year, so it’s pretty exciting.
…Like you, the turning point in my career was the day I decided my freedom wasn’t for sale…
Not sure if you remember my posts, but its something I’ve been thinking about for the last few years, yet needed the push to do it. I can relate to that line above very much. Was in the background for a while.
Also, I’ll be in Chicago. Negotiated a trip to the conference in my deal before we knew where it was. Told my wife we’d be going to San Diego. Now I won’t even need to go to the airport. I just hope its not at the O’Hare Hyatt like the AGE regionals were. That would be funny.
Happy Thanksgiving!
I am with those on the board who want to go indy, especially the AGE reps. I am wondering if there is a logical reason not to use Wachovia’s Finet platform. It has the benefit of not having to move the book and you get to keep the retention check. What am I missing?
[quote=illinoisrep]I am with those on the board who want to go indy, especially the AGE reps. I am wondering if there is a logical reason not to use Wachovia’s Finet platform. It has the benefit of not having to move the book and you get to keep the retention check. What am I missing?[/quote]
the fact that it isn’t really indy…
Joe,
Can you elaborate? I have talked to some Finet reps who may disagree.
[quote=illinoisrep]I am with those on the board who want to go indy, especially the AGE reps. I am wondering if there is a logical reason not to use Wachovia’s Finet platform. It has the benefit of not having to move the book and you get to keep the retention check. What am I missing?[/quote]
The Finet option is a total sales pitch. Odds of switching to it are slim as it is used to RECRUIT from the outside. I personally spoke with 4 WS advisers that were denied the option of doing finet. All were had been with the company for about 8+ years. Production was between 500-800k each. They were told of a waiting list and needing $1Million in production to do it. Before leaving AGE I specifically called the regional mgr and couldn’t get a straight answer.
What you are missing is that you are now working for a bank that's main goal is to squeeze the maximum amount of revenue from you. As you can probably gather from the above post, it's probably going to be tough to get them to allow you to make the switch...bankers are stupid that way. They have a hard time seeing that some revenue is better than none and/or they've convinced themselves that you'll never leave and/or never be able to take your clients with you when you go. Call me a cynic, but that's the same shit I saw from my former employer. They retain brokers primarily through fear tactics that fortunately, I was able to see through.I am with those on the board who want to go indy, especially the AGE reps. I am wondering if there is a logical reason not to use Wachovia’s Finet platform. It has the benefit of not having to move the book and you get to keep the retention check. What am I missing?
[quote=illinoisrep]Joe,
Can you elaborate? I have talked to some Finet reps who may disagree.[/quote]
Well-for starters-they have requirements that they impose on you that, as I understand it, require you to include the Wachovia brand in your office signage and any time you advertise.
Too, the FiNet channel is owned by bank, as noted by others, that already has several thousand advisors in the bank channel and several thousand in the full-service brokerage channel. In fact, they are adding a few thousand more now that they’ve become WachEdwards.
Let’s apply a little common sense here…or perhaps call it constructive cynicism, ok? There are less than 1000 advisors in the FiNet channel, and over 10,000 in the other two if I’m not mistaken. The ‘gross margin’ that the bank earns FiNet advisors is about 15% of all gross revenues. The gross margin for the full service brokerage advisors is around 55%, and for the bank channel dolts around 60-65%.
When push comes to shove, if business conditions are challenging, who do you think is going to get the resources? Hmmmm…the 15% gross margin guys or the 50-60% gross margin generators?
And in the end…they’re always going to be bankers…they just don’t think the same compared to indy managers.
Raymond James and most of the other Indy firms also require you to use their sinage and info on business cards.
Requirements for Indy through FiNet is 250+ Trailing 12. You need more than 1 Million to the Profit Formula
[quote=nestegg]Raymond James and most of the other Indy firms also require you to use their sinage and info on business cards.
Requirements for Indy through FiNet is 250+ Trailing 12. You need more than 1 Million to the Profit Formula
[/quote]
You are wrong about the spelling of the word ‘signage’, and the requirements of indy firms.
It is a regulator requirement to include the 'Securities offered by XYZ Broker/Dealer" language on your business card or signs. But you can operate under your own brand name.
It is my understanding, on the other hand, that Wachovia may allow you to use a DBA, but requires prominent mention of the Wachovia brand. I am open to correction.
Wachovia’s sign requirements are exactly like LPL and RJFS. I have not investigated any others. Regarding all the comments from others, they are appreciated. There is nothing that I have not considered. I am going to try it the easy way first. If that does not work out as WS senior management says it will I can always move later.
[quote=illinoisrep]Wachovia’s sign requirements are exactly like LPL and RJFS. I have not investigated any others. Regarding all the comments from others, they are appreciated. There is nothing that I have not considered. I am going to try it the easy way first. If that does not work out as WS senior management says it will I can always move later. [/quote]
With XMAS around the corner, you might as well wait till March 10th or so to get the AGE 401k match and bonus if you’re above 300k. Leave the WS money behind in Feb. If you took the upfront check don’t spend it. Keep prospecting, staying active in the community, you’ll be fine no matter what happens. Just get to 400k (if you’re not already there) asap to be a solid free agent and you’ll have no problems with wachwards.
[quote=joedabrkr]
[quote=nestegg]Raymond James and most of the other Indy firms also require you to use their sinage and info on business cards.
Requirements for Indy through FiNet is 250+ Trailing 12. You need more than 1 Million to the Profit Formula
[/quote]
You are wrong about the spelling of the word ‘signage’, and the requirements of indy firms.
It is a regulator requirement to include the 'Securities offered by XYZ Broker/Dealer" language on your business card or signs. But you can operate under your own brand name.
It is my understanding, on the other hand, that Wachovia may allow you to use a DBA, but requires prominent mention of the Wachovia brand. I am open to correction.
[/quote]
OMG I did a typo…crucify me lol!
Sorry my brain is faster than my computer. But bravo to you for pointing it out.
And you are incorrect…LPL, RJ, and Finet all have the same requirements as far as cards, and on site SIGNAGE…
Q: Still working for a public company (i.e.: ML, MS, SB)?<?: prefix = o ns = "urn:schemas-microsoft-com:office:office" />
Like it or not, you are obligated by law to look out for the best interests of shareholders - not your clients.Independent RIA's are obligated by law to look out for the best interests of clients.
What are you clients saying when you explain this difference to them?
Or even worse - you are not volunteering this information to them.
Q: Still working for a public company (i.e.: ML, MS, SB)?If yes, you know this story will not end well.[quote=finadvnj]
Q: Still working for a public company (i.e.: ML, MS, SB)?<o:p></o:p>
Like it or not, you are obligated by law to look out for the best interests of shareholders - not your clients.
Independent RIA's are obligated by law to look out for the best interests of clients.
What are you clients saying when you explain this difference to them?
Or even worse - you are not volunteering this information to them.
Q: Still working for a public company (i.e.: ML, MS, SB)?If yes, you know this story will not end well. [/quote]I can tell you when I make decisons for my clients...sharholders dont have anything to do with it
Explain that to your supervisor and your management team.
Better yet, explain it to your clients in writing. You will see how far compliance lets that go. The best thing any advisor can do is to accept fiduciary duty in writing on company letterhead. Any uncertainties in anyone's mind can stop right there!I love this holier than thou RIA stuff. Just b/c you work as an RIA you are beyond reproach. Just b/c you work for a B/D you always act in the companies best interest. Give me a break! If we "company men" didn't act in our clients best interest, we wouldn't be in buisness period. Frankly, neither would you. Get off your high horse and do what's right, PERIOD! Don't lecture us about your "higher moral standards",
Recently got a new client who was paying $2000 a year for “financial planning” from an RIA who had the $55,000 account at Schwab. Pretty steep if you ask me, but I guess that RIA had the clients interests first.
I can go you one better: Prospect came to me with statements for over $1,000,000, RIA was charging four tenths of one percent. Pretty cheap but more than what the advice was worth. The investments were a joke, no rhyme or reason, no apparent strategy, no monitor, just a spreadsheeet, showing approx returns. The RIA, turns out, does it on a part time basis. I'm at a wirehouse, and you can say whatever you want, but I would rather pay 1% for my advice (which is what I charge fo $1mm or more, than .004% for that crap. I agree with the previous poster, there are a lot of RIA's (and indy's) with a holier than tho attitude on this and other boards. That doesnt mean I'd paint them all with a broad brush, tho, and neither should they paint the wirehouse guys with a broad brush. I have plenty of colleagues that do the right thing for their clients and put the firm, and even themselves second. Those guys know, that if they have the right kind of clients, and do the right thing for them at all costs, it will come back to them in spades. Anyone who doesnt believe that is a fool, but dont call the wirehouse guys out as putting the firm (of all freakin things) before the client, because you dont know what you are talking about. (the poster, not all RIA/Indy's)Recently got a new client who was paying $2000 a year for “financial planning” from an RIA who had the $55,000 account at Schwab. Pretty steep if you ask me, but I guess that RIA had the clients interests first.
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