Leaving Business Soon-Question on My Book

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Jan 14, 2006 5:22 pm

I work for a major wire house and have been in the business 3.5 years.  I have decided the business isn't for me and will be leaving soon.


My assets and production stink, and have been even poorer since I have had 2 feet out the door for a while.  Assets have been eroding as people have recently left and of course, I don't care to replace them.


Anyway, I probably have about 9 million in assets left, of which 4 million is wrapped. I want to give it to a certain FA who has been in the business the same length of time and looks to be a lifer.


Anyway, is there a way to guarantee that the book goes to him?  You know the game when an FA leaves.  Branch Manager doles the portions out to his favorties.  Also, what kind of value, if any, would this be worth to the FA?  Any strategies for some type of guaranteed payment?


Thanks.



Finance Dude



Jan 14, 2006 6:26 pm

Curious where are you going?

Jan 14, 2006 11:17 pm
FinanceDude:

I work for a major wire house and have been in the business 3.5 years.  I have decided the business isn't for me and will be leaving soon.


My assets and production stink, and have been even poorer since I have had 2 feet out the door for a while.  Assets have been eroding as people have recently left and of course, I don't care to replace them.


Anyway, I probably have about 9 million in assets left, of which 4 million is wrapped. I want to give it to a certain FA who has been in the business the same length of time and looks to be a lifer.


Anyway, is there a way to guarantee that the book goes to him?  You know the game when an FA leaves.  Branch Manager doles the portions out to his favorties.  Also, what kind of value, if any, would this be worth to the FA?  Any strategies for some type of guaranteed payment?


Thanks.



Finance Dude





It's nearly impossible to guarantee that he will get the clients.....


In all honesty, that isn't really worth that much.  Maybe enough to buy a Yugo.....

Jan 20, 2006 1:49 am

RRB,


Thanks for this.  You are truly a wealth of information.


Bankrep, the only thing that has held me in check since my tenure as an Advisor is real estate.  I am going full-time as a private real estate investor.  I have a bit of cash on the sideline to help me during leaner times.


Joe,  yeah the book is extremely paltry at this point.  I would like to squeak out a few final thousand if I can by selling it. 


For all of you out there, how do you suggest I structure this deal (even if it's only for a few thousand) for a specific advisor I have in mind who might take over the majority of the book?  Do I have him sign a promissory note?  Upfront payment and some deferred payment based on asset retention?  Your advice is greatly appreciated!


FD




Jan 20, 2006 6:43 am

One thing you could do to ensure that your friend gets the accounts when you leave - set up a split # with him/her NOW, and transfer the accounts to that #.  You may not want to transfer them all, or the manager might get suspicious.  Tell the manager that the two of you like working together, and it provides good coverage for your clients.  that way when you leave the accounts are theirs - and not all the manager's favorites.  You'll of course have to work out payment ahead of time - in writing - with this person behind the scenes.


I would caution you not to let the wirehouse culture sour you on this business.  I work for a major wirehouse and also hate the culture, but friends who have left and gone to other firms say it's like night and day.  Just don't go to another wirehouse.  They're basically all the same - manager on your back all the time, etc.  They hire rookies but don't support them.  If you turn into a superstar overnight, then great, you'll fit in, but if not, you are treated like scum.  You see the "rich getting richer" while you bust your butt cold calling and never being able to catch up to the ones who are handed everything.


You might do fine at a Royal Alliance or RJ and might actually enjoy it.  Good luck.



Jan 20, 2006 8:30 am

How about tell your clients that if you were them, you'd tell the firm (after you leave) that they want to work with so-and-so.  The client should get want they want...and if not, they can always threaten to transfer elsewhere.

Jan 20, 2006 7:15 pm

Real estate investor?


Did you learn anything about following the herd?  What did you do  read rich dad poor dad?

Jan 20, 2006 7:21 pm
bankrep1:

Real estate investor?


Did you learn anything about following the herd?  What did you do  read rich dad poor dad?



I was thinking just about the same thing.....get into real estate NOW???!?

Jan 30, 2006 10:17 pm

Sorry for the slow reply.  My laptop is on the fritz and I wouldn't dare make these posts at work. 


Newrookie, thanks for the advice, but I think setting up the joint number with the advisor would raise suspiscions because it is so out of the ordinary.


Bankrep and Joe, reread my prior post.  I'm certainly not getting into Real Estate now.  I have been a successful real estate investor for 5 years now.  Trust me, I know what I am doing!  Besides, markets are local, so there are opportunities in areas that haven't see much of a boom.


Anyway, that being said, is there anything I can legally sign to make sure the advisor that I would give the assets to acutally pays me?  Also, what is the indsustry multiple on wrappaed assets and such? For the assets that are staying, it would be about $8 million, $4 million of which is wrapped at a weighted average of 1.20%.  The other $4 million is mainly dead, with moderate opportunities here and there.  I would even be willing to sit down with the advisor and give him the inside scoop and how much in additional assets certain clients have.  How would you value this and how should I structure this deal?  Again, I know the numbers are poor, but I am just trying to squeeze out a few extra bucks for myself if I can.


Thanks.


FD

Jan 30, 2006 11:02 pm

Well good luck then!

Jan 31, 2006 10:35 pm

Anyone?

Jan 31, 2006 11:12 pm
FinanceDude:

Sorry for the slow reply.  My laptop is on the fritz and I wouldn't dare make these posts at work. 


Newrookie, thanks for the advice, but I think setting up the joint number with the advisor would raise suspiscions because it is so out of the ordinary.


Bankrep and Joe, reread my prior post.  I'm certainly not getting into Real Estate now.  I have been a successful real estate investor for 5 years now.  Trust me, I know what I am doing!  Besides, markets are local, so there are opportunities in areas that haven't see much of a boom.


Anyway, that being said, is there anything I can legally sign to make sure the advisor that I would give the assets to acutally pays me?  Also, what is the indsustry multiple on wrappaed assets and such? For the assets that are staying, it would be about $8 million, $4 million of which is wrapped at a weighted average of 1.20%.  The other $4 million is mainly dead, with moderate opportunities here and there.  I would even be willing to sit down with the advisor and give him the inside scoop and how much in additional assets certain clients have.  How would you value this and how should I structure this deal?  Again, I know the numbers are poor, but I am just trying to squeeze out a few extra bucks for myself if I can.


Thanks.


FD



P.S.  Being a successful real estate investor for the last 5 yrs is sorta like being a 'succesful technology fund manger' from 96-99!

Jan 31, 2006 11:17 pm
joedabrkr:
FinanceDude:

Sorry for the slow reply.  My laptop is on the fritz and I wouldn't dare make these posts at work. 


Newrookie, thanks for the advice, but I think setting up the joint number with the advisor would raise suspiscions because it is so out of the ordinary.


Bankrep and Joe, reread my prior post.  I'm certainly not getting into Real Estate now.  I have been a successful real estate investor for 5 years now.  Trust me, I know what I am doing!  Besides, markets are local, so there are opportunities in areas that haven't see much of a boom.


Anyway, that being said, is there anything I can legally sign to make sure the advisor that I would give the assets to acutally pays me?  Also, what is the indsustry multiple on wrappaed assets and such? For the assets that are staying, it would be about $8 million, $4 million of which is wrapped at a weighted average of 1.20%.  The other $4 million is mainly dead, with moderate opportunities here and there.  I would even be willing to sit down with the advisor and give him the inside scoop and how much in additional assets certain clients have.  How would you value this and how should I structure this deal?  Again, I know the numbers are poor, but I am just trying to squeeze out a few extra bucks for myself if I can.


Thanks.


FD



P.S.  Being a successful real estate investor for the last 5 yrs is sorta like being a 'succesful technology fund manger' from 96-99!



Good one.

Jan 31, 2006 11:27 pm
Dirk Diggler:
joedabrkr:
FinanceDude:

Sorry for the slow reply.  My laptop is on the fritz and I wouldn't dare make these posts at work. 


Newrookie, thanks for the advice, but I think setting up the joint number with the advisor would raise suspiscions because it is so out of the ordinary.


Bankrep and Joe, reread my prior post.  I'm certainly not getting into Real Estate now.  I have been a successful real estate investor for 5 years now.  Trust me, I know what I am doing!  Besides, markets are local, so there are opportunities in areas that haven't see much of a boom.


Anyway, that being said, is there anything I can legally sign to make sure the advisor that I would give the assets to acutally pays me?  Also, what is the indsustry multiple on wrappaed assets and such? For the assets that are staying, it would be about $8 million, $4 million of which is wrapped at a weighted average of 1.20%.  The other $4 million is mainly dead, with moderate opportunities here and there.  I would even be willing to sit down with the advisor and give him the inside scoop and how much in additional assets certain clients have.  How would you value this and how should I structure this deal?  Again, I know the numbers are poor, but I am just trying to squeeze out a few extra bucks for myself if I can.


Thanks.


FD



P.S.  Being a successful real estate investor for the last 5 yrs is sorta like being a 'succesful technology fund manger' from 96-99!



Good one.



not at good as yours.....

Jan 31, 2006 11:34 pm
joedabrkr:
Dirk Diggler:
joedabrkr:
FinanceDude:

Sorry for the slow reply.  My laptop is on the fritz and I wouldn't dare make these posts at work. 


Newrookie, thanks for the advice, but I think setting up the joint number with the advisor would raise suspiscions because it is so out of the ordinary.


Bankrep and Joe, reread my prior post.  I'm certainly not getting into Real Estate now.  I have been a successful real estate investor for 5 years now.  Trust me, I know what I am doing!  Besides, markets are local, so there are opportunities in areas that haven't see much of a boom.


Anyway, that being said, is there anything I can legally sign to make sure the advisor that I would give the assets to acutally pays me?  Also, what is the indsustry multiple on wrappaed assets and such? For the assets that are staying, it would be about $8 million, $4 million of which is wrapped at a weighted average of 1.20%.  The other $4 million is mainly dead, with moderate opportunities here and there.  I would even be willing to sit down with the advisor and give him the inside scoop and how much in additional assets certain clients have.  How would you value this and how should I structure this deal?  Again, I know the numbers are poor, but I am just trying to squeeze out a few extra bucks for myself if I can.


Thanks.


FD



P.S.  Being a successful real estate investor for the last 5 yrs is sorta like being a 'succesful technology fund manger' from 96-99!



Good one.



not at good as yours.....



Don't compare yourself to me. I've always been the guy who had the gonads to SAY what everyone else is THINKING.

Jan 31, 2006 11:45 pm
Dirk Diggler:
joedabrkr:
Dirk Diggler:
joedabrkr:
FinanceDude:

Sorry for the slow reply.  My laptop is on the fritz and I wouldn't dare make these posts at work. 


Newrookie, thanks for the advice, but I think setting up the joint number with the advisor would raise suspiscions because it is so out of the ordinary.


Bankrep and Joe, reread my prior post.  I'm certainly not getting into Real Estate now.  I have been a successful real estate investor for 5 years now.  Trust me, I know what I am doing!  Besides, markets are local, so there are opportunities in areas that haven't see much of a boom.


Anyway, that being said, is there anything I can legally sign to make sure the advisor that I would give the assets to acutally pays me?  Also, what is the indsustry multiple on wrappaed assets and such? For the assets that are staying, it would be about $8 million, $4 million of which is wrapped at a weighted average of 1.20%.  The other $4 million is mainly dead, with moderate opportunities here and there.  I would even be willing to sit down with the advisor and give him the inside scoop and how much in additional assets certain clients have.  How would you value this and how should I structure this deal?  Again, I know the numbers are poor, but I am just trying to squeeze out a few extra bucks for myself if I can.


Thanks.


FD



P.S.  Being a successful real estate investor for the last 5 yrs is sorta like being a 'succesful technology fund manger' from 96-99!



Good one.



not at good as yours.....



Don't compare yourself to me. I've always been the guy who had the gonads to SAY what everyone else is THINKING.



To be precise, I wasn't comparing myself to you.  I was merely comparing one of my quips to yours.


Much of what you say is true.  Doesn't Howard Stern say something like that?  It's worked out ok for him!

Feb 1, 2006 1:16 am

Independent of you two verbally patting each other on the back, do you have anything of value to add to my post?


As I suspected, you would jump all over the real estate thing, but that's really not the topic at hand.


Feb 1, 2006 8:56 am

I love you, Joe.

Feb 1, 2006 9:33 am

Dirk-


I am suprised that you are not starring in your own musical version of brokeback mountain. Afterall, you have made so much money with EIA's, even YOUR mother should be proud.


These forums are useless, and as Zacko once said, it's time to take a really long break.

Feb 1, 2006 9:43 am
readytogo:

Dirk-


I am suprised that you are not starring in your own musical version of brokeback mountain. Afterall, you have made so much money with EIA's, even YOUR mother should be proud.


These forums are useless, and as Zacko once said, it's time to take a really long break.



I don't get it...if you make money selling EIA's and your mother is proud, you should star in your own musical version of brokeback mountain?


I think you should let ME take care of the funny stuff around here. Enjoy your really long break.