Boutique

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Dec 18, 2008 5:43 am

I'm thinking of departing a wirehouse in an affluent city and joining a 30 rep firm.  The firm is 100 years old, solid reputation.  I think clients and prospects will like the smaller boutique (I know i will).  I guess I'm looking for a second opinion...

Dec 18, 2008 9:35 am

What the hell are you doing posting at 4:43 a.m.?  So you're leaving a "main street" firm and going to a established, well respected local firm.  Well with all the news media out there about the big ones, I don't see any reason your clients would be upset with this.  I guess it depends on your relationship with them. 

Dec 18, 2008 10:03 am
NOVA:

I'm thinking of departing a wirehouse in an affluent city and joining a 30 rep firm.  The firm is 100 years old, solid reputation.  I think clients and prospects will like the smaller boutique (I know i will).  I guess I'm looking for a second opinion...



Nova, picking off clients from a wirehouse is a freaking piece of cake. If it's so easy for me, it ought to be a walk in the park for you to pick off your own clients.

I'm meeting with a $2mm lady today who has a morgan stanley broker and is tired of losing money and paying fees. I will let her know that the first thing I'm going to do is turn off "those extra fees." The second thing we're going to do is stop losing money.

Dec 18, 2008 10:51 am

Poor lady.

Dec 18, 2008 11:02 am
Borker Boy:

Poor lady.




She just called me to let me know that she instructed the MS broker to fax her most recent statements to my office. OUCH!

Dec 18, 2008 4:15 pm
Hank Moody:
NOVA:

I'm thinking of departing a wirehouse in an affluent city and joining a 30 rep firm.  The firm is 100 years old, solid reputation.  I think clients and prospects will like the smaller boutique (I know i will).  I guess I'm looking for a second opinion...



Nova, picking off clients from a wirehouse is a freaking piece of cake. If it's so easy for me, it ought to be a walk in the park for you to pick off your own clients.

I'm meeting with a $2mm lady today who has a morgan stanley broker and is tired of losing money and paying fees. I will let her know that the first thing I'm going to do is turn off "those extra fees." The second thing we're going to do is stop losing money.

 
 
 
Fixed or VA?
Dec 18, 2008 4:46 pm
NOVA:

I'm thinking of departing a wirehouse in an affluent city and joining a 30 rep firm.  The firm is 100 years old, solid reputation.  I think clients and prospects will like the smaller boutique (I know i will).  I guess I'm looking for a second opinion...

 
That's kind of what our company is like, but not as many reps and not as old.  I'd bet you'd love it and so would your clients.  They work with you, remember?
Dec 18, 2008 7:34 pm

Thanks.  You confirmed my gut feeling.  I'm so excited!

Dec 18, 2008 7:42 pm
NOVA:

Thanks.  You confirmed my gut feeling.  I'm so excited!

 
What is the rent and what other out-of-pocket expenses are you aware of?
 
What gross payout would you expect?
 
Also, what is the make-up of your book, more or less?
Dec 18, 2008 9:25 pm

Payout is just shy of 50%.  All rent and expenses are covered.  Book is either fee based or funds with trails...

Dec 18, 2008 9:48 pm

If you went to a smaller company, you might be able to find payouts between 80-90%.  But after rent and other expenses, ticket charges, etc., you could end up maybe in the 60% range.

 
So you might be giving up 10% for the 30 man firm, but being independent, your world could open up and lead you to a lot more business.  We've found people are really seeking an independent advisor, especially in these times.
 
I say do it.  Then, once you drop the "wirehouse mentality", look at some insurance based products and watch referrals grow!