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Feb 15, 2007 8:29 pm

I've been an independent money manager for individuals now for over 2 years.. I have 35 clients and about $1 million under managment.  Clearly I'm doing something way wrong. 


I rely soley on networking and giving presentations.  I don't or haven't tried cold calling.  I'm in a small office with a branch manager who barely has a book as he has a pipeline financing business he focuses on and the other broker has been broker for 7 years and has less money under managment than me as he's a poor stock picker and has always had a weak client base that turns over a lot. 


I think I have got a very poor perseption of what it takes to succeed.  My 35 clients are mostly professionals in the city in which I work, make good money, but don't yet have large portfolios.  But the relationships are strong and will be long term clients.


I'm returning 20% per year on average, some over 100%... my own IRA is up 100% in little over 2 years.  I'm a good investor and perhaps I spend too much time investing and not marketing


I've written a book and teach a class based on the book at my office. But gosh the people who take class dont' have big bucks and the networking I do I'm just not getting in front of people with big bucks.


What I'm most surprised about is, I almost never meet investment professionals.  I meet tons of RE investors and RE agents, Mortgage brokers.. but rarely do I meet FA's.  Where is everybody? Are they all just behind desk cold calling? 


Perhaps its because my "networking" approach is just weak and doesn't work.  I'm 29 years old..not from wealthy family and circle of associates/friends is not of wealth.


I've got my book, my class, great presentation using lots of Harry Dent forecasting data.. got a good website, and starting to get more clients faster now.. but nothing big.  I have idea of having 200 account with avg account $50k so to have $10 million under managment.  Far from it and getting worried...


Advise?  Thank you.





Feb 15, 2007 8:51 pm

Are you kidding?   You must be joking? I hope you're joking...

Feb 15, 2007 9:32 pm

Never had "training program" .. the one that only 15% of new FA's even make it through. 

Feb 15, 2007 10:45 pm

You make the bank boys look like real brokers.

Feb 15, 2007 11:20 pm
bankrep1:

Are you kidding?   You must be joking? I hope you're joking...



Haha!  But, my partner tonight is Stone Vertical Epic Ale.


Seriously,  1MM under assets?  Pick up the phone and start calling people.  Your success/failure is your own fault.  Decide which side you want to be on.

Feb 15, 2007 11:51 pm

I'm returning 20% per year on average, some over 100%... my own IRA is up 100% in little over 2 years. 


This might be a case for some more formal training. It seems like you are really aggressive, have you been through a down market?


For example, today I called a working client who has about 850k with me - we made 13% 12 months trailing, with about 40% fixed. I wanted to pull him back five or ten percent into bonds, we ended up going to 55% bonds.


Point is, people who have money want to make it and preserve it, and you need to try to talk to clients and potential clients in a way that makes sense.


Personal contact is good, but the phone is very efficient. Don't spend too much time building portfolios, you are probably not smarter than the average mutual fund manager.

Feb 16, 2007 1:12 am

Sinking,


    I don't want to make you feel bad, but I brought in 2 million this week.  You need to start asking for the order.

Feb 16, 2007 2:02 am

If you really want to do this as a career, you've got to find an office that will teach you how to survive and eventually thrive.  You have no one to model. 


Feb 16, 2007 8:16 am
planrcoach:

I'm returning 20% per year on average, some over 100%... my own IRA is up 100% in little over 2 years. 


This might be a case for some more formal training. It seems like you are really aggressive, have you been through a down market?


For example, today I called a working client who has about 850k with me - we made 13% 12 months trailing, with about 40% fixed. I wanted to pull him back five or ten percent into bonds, we ended up going to 55% bonds.


Point is, people who have money want to make it and preserve it, and you need to try to talk to clients and potential clients in a way that makes sense.


Personal contact is good, but the phone is very efficient. Don't spend too much time building portfolios, you are probably not smarter than the average mutual fund manager.



Seems to ME that he's lying.

Feb 16, 2007 8:31 am

Do you work in some kind of rural or very poor area? I cannot remember the last month where I did not pull in a million dollars.



If someone has 30K I will set up an account for them, but we are going to look at it maybe once a year.

Feb 16, 2007 9:28 am

Thanks Planrcoach..


Performance I would not say funchion of aggressiveness.. there was very good reason to be bullish on Energy in 2005 and Silver, solar panel companies in 2006 and now tech, Japan and S. Korea in 2007.  It's more a funchion of discretion of timing and % allocation.  I do have some fixed income as well.


Fire has been lite under me.. thanks.


Meeting with new prospect today.  Taking business from SmithBarney..once again. : )




Feb 16, 2007 9:51 am

function

Feb 16, 2007 10:01 am
rankstocks:

Sinking,


    I don't want to make you feel bad, but I brought in 2 million this week.  You need to start asking for the order.



Congrats.  I have been in the biz for 18 months and hit $10 AUM.  This has too be a joke.


Again, major congrats.

Feb 16, 2007 10:16 am

Meeting with new prospect today.  Taking business from SmithBarney..once again. : )


Good luck. All kinds of opportunity to build it in your own creative way. Ironically, the money itself is well, just money.

Feb 16, 2007 11:21 am
bankrep1:

Do you work in some kind of rural or very poor area? I cannot remember the last month where I did not pull in a million dollars.

If someone has 30K I will set up an account for them, but we are going to look at it maybe once a year.


Wow Bank, it's good to be you.  Annually what then 15 -20 million?  Is it really that good at your bank?  Man I think I could swallow some of the drawbacks for asset exposure like that.  Do you think it's the best place for an AVERAGE successful broker to build a big book?  I'm bringing in 5-6 million a year (EDJ) and heading toward going independent. (20M under management).  If you were me would you look at banks? 

Feb 16, 2007 11:23 am

Replace AVERAGE with TYPICAL.  I don't want to imply substandard at all just to point out I'm not a super duper asset gatherer.

Feb 16, 2007 2:42 pm

This has got to be a joke.  35 clients with $1M AUM means an average client size of $28,000.  Given the "impressive" returns cited, the clients probably opened the accounts with maybe $20,000. You cannot live for two years on 1.5 clients/month investing maybe $20,000 total.  No B/D will let you coast this long.


I would think you would have better luck prospecting for big game ($500,000+ clients) than doing what you're doing.  At least, if you landed even three of these accounts in a year, you're doing better than you are now. And those clients could actually give you some decent referrals.  Referrals from clients with $20,000, generally aren't worth too much.

Feb 16, 2007 2:58 pm

The original post is a sham- this guy is not for real...

Feb 16, 2007 3:22 pm

Since when is Putsy not for real?

Feb 16, 2007 4:23 pm

Got the new client.. $40k in retirment accounts and $5k to start individual.. has net worth of $125k.   She's from Morgan Stanley, not Smith Barney.


Very humbling to put myself out here like this and share my lack of assets. (and spell FUNCTION wrong)


It's as though I'm running a race and no one to "keep up with" .. getting the critisism and hearing about the levels of assets you folks are getting at least give me benchmark.


planrcoach, good website! Thanks!