Should I stay or should I go?

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Jul 7, 2006 1:40 pm

[quote=maybeeeeeeee]

I am at Ray Jay and we have many EDJ guys coming over here.

[/quote]

How do you know?

Are you in the HR department in St. Pete, or are you in a branch that would not be truly reflective of what is going on company wide?

Do they send out a newsletter that says "A lot of guys from EDJ are coming over here..."?

Jul 7, 2006 2:31 pm

LPL makes that info available so I would guess RJ does also.  Someone who is considering moving to LPL showed it to me. It shows all the EDJ people in our area who have moved and the date they moved and has this area I live in segmented. 

Jul 7, 2006 2:39 pm

[quote=Malcolm]LPL makes that info available so I would guess RJ does also.  Someone who is considering moving to LPL showed it to me. It shows all the EDJ people in our area who have moved and the date they moved and has this area I live in segmented. [/quote]

So you figure that Ray Jay sends out a broadly distributed interoffice piece that talks about where they are getting their new brokers--something that is circulated among the branch office brokers and sales assistants?

Is that what you're saying?

Jul 7, 2006 2:53 pm

[quote=NASD Newbie]

So you figure that Ray Jay sends out a broadly distributed interoffice piece that talks about where they are getting their new brokers--something that is circulated among the branch office brokers and sales assistants?

Is that what you're saying?

[/quote]

Have another cup of coffee grandpa, you seem to be slow on the uptake of new fangled intel.

Jul 7, 2006 3:18 pm

[quote=NASD Newbie][quote=maybeeeeeeee]

I am at Ray Jay and we have many EDJ guys coming over here.

[/quote]

How do you know?

Are you in the HR department in St. Pete, or are you in a branch that would not be truly reflective of what is going on company wide?

Do they send out a newsletter that says "A lot of guys from EDJ are coming over here..."?

[/quote]

Yes, we get an e mail from St. Pete's welcoming each new advisor.  It tells the advisors name, his new branch.  It also tells us how many years he has been in the business and the name of their former company.

At the end of each quarter, we get a company wide list showing the number of new advisors who came to RayJay and the number of those who left.

Very few advisors leave.

Some make the choice to go to the indy side of RayJay which is called RJFS. 

This is the only company I know of that lets you OWN your book and freely move to indy if you choose to.  You can stay at the same company and fill out a simple Broker Dealer Form Change to move your clients to the indy side.  Honestly, ask anyone who has moved--it can be very difficult to move to another firm.

By the way, if you chose to leave (which few people do) you take your book free and clear.  They will not fight you for it unless you are still under the first couple years of a non compete contract. 

Jul 7, 2006 3:38 pm

It is what it is.  You can read what I said.  I'm not trying to start an argument. 

Jul 7, 2006 6:01 pm

[quote=Malcolm]LPL makes that info available so I would guess RJ does also.  Someone who is considering moving to LPL showed it to me. It shows all the EDJ people in our area who have moved and the date they moved and has this area I live in segmented. [/quote]

MS posts this info as well, for the whole country.

Jul 7, 2006 6:35 pm

It’s all public information that’s available on the NASD’s website anyway, so it isn’t like it’s a big secret…

Jul 7, 2006 6:50 pm

[quote=FreedomLvr]It's all public information that's available on the NASD's website anyway, so it isn't like it's a big secret...[/quote]

What is available on the NASD website?

Jul 7, 2006 8:32 pm

Maybeeeee-

$75000 if I my whole book was A-shares, my book didn't grow a dollar last year and all I did was sit back and collect trails.

my revenue breakdown goes something like this trailing 12

$45000 stock trades

$20000 bond trades

$20000 service fees on those A-shares

$15000 on systematic investment/direct investment programs (Simple IRAs, Jones DCA programs, 529 plans, automatic bond reinvestment programs)

$150000 mutual fund sales on new money (A shares AND B shares--GASP!!)

$15000 variable annuity sales on new money

$90000 in Life insurance sales

Life insurance was the big difference for me this year. That $90000 came from 4 cases. Estate planning and tax planning with an attorney and the Hartford guy. Take the life insurance out and the numbers make more sense. If anyone wants more details on what I am doing, PM me later.

I also brought in $9 million over the last 12 months, which doesn't hurt anything.

You probably noticed that all of the above is transaction-based with the exception of the service fees and the automatic stuff I have going on. Which brings me back to the point, which you mentioned, I would LOVE to have fee based in my quiver. It's not for everyone, but a LOT of people, including current clients, would benefit.

Cheers!

RS

P.S. I have a meeting Monday with SB. I am asking for 100%. We'll se what happens.

Jul 7, 2006 10:10 pm

[quote=NASD Newbie]

[quote=FreedomLvr]It's all public information that's available on the NASD's website anyway, so it isn't like it's a big secret...[/quote]

What is available on the NASD website?

[/quote]

Part of that new fangled intel I was referring to. It is available at www.nasdr.com (you'll have to search the website).  Now gramps it's time to take out your dentures and let them soak over night.

Jul 9, 2006 11:54 am

Thanks for the breakdown on your book, and your honesty.  Transaction business in not bad--it is just nice to be able to offer both types of business.

Can you really make a case to sell B shares to a client?  Where does it fit?

Jul 9, 2006 2:41 pm

Not very many firms that treat transaction brokers with respect. Somehow the industry is telling us that our $1 of trade revenue is second class to $1 of fee revenue. As a matter of fact, there is only one firm I am aware of that flatly states “A dollar of revenue is all the same NO MATTER where it comes from.” In my previous posts, I have stated that the move to fee based is an insidious ploy to get the firm between the adviser and the client. We’ll see if I’m right.

Jul 9, 2006 11:50 pm

maybeeeeee-

B shares are good for:

Small trades where they will never hit a breakpoint. In the American Funds Advisor Guide they do a breakdown of A, B, and C shares at different investment dollar amount levels: $10k, $25K, $50K, $100k and run net return to client based on average expenses within the American Funds. On a $10,000 invesment, B shares actually outperform A and C shares over a ten year period. At $25,000, it's a wash between A and B shares. Anything above that probably needs to be A shares. 

Also, if you have a client who is taking immediate systematic distributions, B shares make sense (if the client is not eligible for a huge breakpoint). You can pull up to 12 % (depending on the fund company) a year as part of a systematic withdrawal program without triggering the CDSC, and the B share will outperform in most cases over most time frames. This works well for amounts under $100,000. Run some hypos sometime on this, it's fascinating.

Jones, of course, thinks C shares are the devil.

Transaction business is not bad, but at what point is this going to blow up on me? I know Jones brokers who have 1000 households. Studies have shown that one person can only service 300 effectively. Do I want to be the Jones guy? Or do I want to be more important to less people paying me fees for advice rather than transactions? Do I want to be tied to the office being reactive or do I want to able to cycle through all of my clients on a monthly basis? Transaction based isn't bad, it's just demanding and high maintainance.   

Meeting tomorrow night, I'll let you know what I decide and thanks again everyone on the input. It has been really helpful.

RS   

Jul 10, 2006 5:25 pm

[quote=rockstar1]

maybeeeeee-

B shares are good for:

Small trades where they will never hit a breakpoint. In the American Funds Advisor Guide they do a breakdown of A, B, and C shares at different investment dollar amount levels: $10k, $25K, $50K, $100k and run net return to client based on average expenses within the American Funds. On a $10,000 invesment, B shares actually outperform A and C shares over a ten year period. At $25,000, it's a wash between A and B shares. Anything above that probably needs to be A shares. 

Also, if you have a client who is taking immediate systematic distributions, B shares make sense (if the client is not eligible for a huge breakpoint). You can pull up to 12 % (depending on the fund company) a year as part of a systematic withdrawal program without triggering the CDSC, and the B share will outperform in most cases over most time frames. This works well for amounts under $100,000. Run some hypos sometime on this, it's fascinating.

Jones, of course, thinks C shares are the devil.

Transaction business is not bad, but at what point is this going to blow up on me? I know Jones brokers who have 1000 households. Studies have shown that one person can only service 300 effectively. Do I want to be the Jones guy? Or do I want to be more important to less people paying me fees for advice rather than transactions? Do I want to be tied to the office being reactive or do I want to able to cycle through all of my clients on a monthly basis? Transaction based isn't bad, it's just demanding and high maintainance.   

Meeting tomorrow night, I'll let you know what I decide and thanks again everyone on the input. It has been really helpful.

RS   

[/quote]

You sir are a gentleman and scholar.

I have not had customers with under $25,000 to invest.  My average account is above $150k.  Not bragging, just stating a fact.

You sound like a quality person who does the best for his customer.  Please keep us informed and best of luck.

Jul 24, 2006 11:07 pm

They ain't budging on the offer and I ain't leaving. The branch manager's explanation to my wife as to why the offer was so low:

"Well, you know, Smith Barney's offers are never going to be the best on the street. We have to do a P&L analysis because the recruitment bonus is amortized to the branch P&L for nine years."

Gimme a break-

So, $255000/9 equals $28333 a year amortized for my 75% deal.

and $340000/9 is 37777 a year if the deal was 100%.

By then I should be producing in the $700-800k range. Another $740 a month for nine years doesn't seem like a big deal for someone on the trajectory I am on. Apparently it is.

While I realize it's not about the money, it still amounts to someone tapping you on the shoulder and asking you "What do you think you're worth?" It's kind of insulting if the offer is too low.

Their platform is better, but after much consideration, it would really only make a difference for a handful of clients. My clients are middle market-mass affluent $100k-$500k households. Jones has everything they need and they LIKE Jones.

I would also lose my BOA in the deal. Screw that.

I think I will stick around. If I get sick of subsidizing the veteran IR's bonuses, I'll go indy and take my BOA with me.

Much thanks to everyone for the help. Y'all were extremely helpful in helping me make the decision.

Later-

RS

P&L THIS SB!!!

Jul 24, 2006 11:42 pm

I think you made the right decision.  It’s hard to put a price on your freedom, but what they shot you was pathetically low.

Aug 9, 2006 8:02 am

Wow, that place is in Houston.

What other recruiter who prowls these parts is also in Houston?

Who would have thought that there would be two employment agencies specializing in Wall Street so far from Wall Street?

Aug 9, 2006 8:55 am

[quote=NASD Newbie]

Wow, that place is in Houston.

What other recruiter who prowls these parts is also in Houston?

Who would have thought that there would be two employment agencies specializing in Wall Street so far from Wall Street?

[/quote]

News flash-things happen in this business outside the 212 area code all the time!  Why shoot we even have electricity and runnin' water and fancy computers out in these parts!!!
<!-- var SymRealOnLoad; var SymReal;

Sym()
{
window.open = SymWinOpen;
if(SymReal != null)
SymReal();
}

SymOnLoad()
{
if(SymRealOnLoad != null)
SymRealOnLoad();
window.open = SymRealWinOpen;
SymReal = window.;
window. = Sym;
}

SymRealOnLoad = window.onload;
window.onload = SymOnLoad;

//–>

Aug 9, 2006 9:01 am

[quote=joedabrkr] [quote=NASD Newbie]

Wow, that place is in Houston.

What other recruiter who prowls these parts is also in Houston?

Who would have thought that there would be two employment agencies specializing in Wall Street so far from Wall Street?

[/quote]

News flash-things happen in this business outside the 212 area code all the time!  Why shoot we even have electricity and runnin' water and fancy computers out in these parts!!!
 <!-- var SymRealOnLoad; var SymReal;

Sym()
{
window.open = SymWinOpen;
if(SymReal != null)
SymReal();
}

SymOnLoad()
{
if(SymRealOnLoad != null)
SymRealOnLoad();
window.open = SymRealWinOpen;
SymReal = window.;
window. = Sym;
}

SymRealOnLoad = window.onload;
window.onload = SymOnLoad;

//–> [/quote]

Yep, but what separates people like you from people like me is that I am bright and curious about things that seem strange to me.