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And I believe you are misunderstanding. I’m not positioning anyone on fees. When I ask a client, “Are you in a wrap account or do you pay transactional” and the client says “I pay $500 a year, because 2 days ago I signed a new contract with my Ameriprise Advisor and told him I did not want to pay $500 a year plus transactions” and the advisor says “Oh you don’t ever pay me a dime. The investment company pays me. You don’t pay any fees”. Thats a flat out lie that needs to be addressed.
This situation is totally different than anything you guys are posting. You are continuing with this whole “I bash other advisors” and “say we are cheaper”, thats not what I do at all.
You are taking a question I asked here ()<-------------------------------------------------------------------------------------------------------->() and coming over here with it. Thats the name of this site.
Don't pull me into this. I'm not going to rehash it, but I've only had one thread that I have discussed anything of this nature on, and I still feel that I was spot on on that one. Apparently a few of this guy's clients did, too, as he has now had 3 complaints filed against him for the exact same thing in the last six months. This was the only situation where I have ever showed the slightest distate for another broker. I typically deflect anything said about the current broker and tell the client what I can do for them. I have never stood on a soapbox, thinking Jones' way is the only way. I am well aware that there are a lot of advisors out there that know a hell of a lot more about investments than I do, and have access to a hell of a lot more strategies. Ron, I like your sig.No. This is not the first time you have come to the table with this argument. You and MsBroker have both done this. Standing on the Jones soapbox as newbies that you are doing right and everyone else is doing wrong. I did the exact same thing when I started and I was an idiot. You will see as time goes on that there are plenty of good advisors out there and plenty of dumb clients, not the other way around.
Its well documented that Wind is a proponent of positioning fees as a reason to switch advisors. In your last post, you asked a simple question “Are you in a wrap account or do you pay transactional?”. You’re honestly telling us that that long winded answer is what the client gave you? Not only did the client answer your question but also went into a diatribe about how the advisor explained how the client is not paying any account fees? He said that without you delving further into the whole “Oh, interesting Mr. Client. Tell me more about how the fees are structued.” Why was the question even asked? Do you pay wrap or transactional. How is that even relevant before you look at a statement? What would your answer have been? “Oh, cool.” Or, “Interesting.” Your tales of bashing other advisors is legendary, and the legend continues.
[quote=Moraen] [quote=Ronnie Dobbs] You’re wrong Moraen.[/quote] Unlikely this time. Since this is experience talking. I spent the first 18 summers of my life and three years in Oklahoma. Had to go to church with my grandparents every week. My first job was working on a Christmas tree farm in Haskell. My brother is a graduate of OU. I have an uncle in OKC, another who teaches at OU, and an aunt who lives in Norman. My grandmother lives in Tulsa, another set of aunts and uncles live in Stillwater. I’m also in your neck of the woods every time for a week around April and every other year go there during December. How much time have you spent in Georgia, South Carolina, North Carolina? I will concede that you have spent more time in Oklahoma than I have, but you have nothing to compare it to.
Can you deliver a gift to Windy for me next time you are in his neck of the woods ?[/quote]
I can. Sure thing.
Is there a good way for me to package a steaming loaf without you having to smell it ?
Consider the source - your coworker and future partner
Hater
Oppps darn blackberry posted twice!
Is this question offered to show the client what you can do for him or is it offered to initiate a conversation on your lower fees? I will save you the time, it is offered to show the client what you can do for him which is offer lower fees. This will come back to bite you. THIS IS POSITIONING A PROSPECT ON FEES. I opened a $800m account last week despite the fact I charge 50 bps MORE than the previous adviser. The client moved his money to me because of what I can do for him, not what fee I charge.And I believe you are misunderstanding. I’m not positioning anyone on fees. When I ask a client, “Are you in a wrap account or do you pay transactional” and the client says “I pay $500 a year, because 2 days ago I signed a new contract with my Ameriprise Advisor and told him I did not want to pay $500 a year plus transactions” and the advisor says “Oh you don’t ever pay me a dime. The investment company pays me. You don’t pay any fees”. Thats a flat out lie that needs to be addressed.
This situation is totally different than anything you guys are posting. You are continuing with this whole “I bash other advisors” and “say we are cheaper”, thats not what I do at all.
You are taking a question I asked here ()<-------------------------------------------------------------------------------------------------------->() and coming over here with it. Thats the name of this site.
Windy - not going to argue with you.
I admitted that I was wrong about OK not being in the bible belt.
However, what I said was, that the South is MORE of the bible belt than OK. Since I have been to both areas, and have seen them, even inside my little “whole”, based on my experience, the South is more bible belty (?) than OK.
Also, since the matter of degree is a matter of opinion and personal perception, I really CAN’T be wrong about that.
Is there a good way for me to package a steaming loaf without you having to smell it ?
No. I guess I could breath through my mouth, but I don't want the particles to come through.
Is this question offered to show the client what you can do for him or is it offered to initiate a conversation on your lower fees? I will save you the time, it is offered to show the client what you can do for him which is offer lower fees. This will come back to bite you. THIS IS POSITIONING A PROSPECT ON FEES. I opened a $800m account last week despite the fact I charge 50 bps MORE than the previous adviser. The client moved his money to me because of what I can do for him, not what fee I charge.[/quote] Good post. If you are going to win all of your clients over by charging lower than their previous guy then you are no better than a discount online brokerage.[quote=Ronnie Dobbs]And I believe you are misunderstanding. I’m not positioning anyone on fees. When I ask a client, “Are you in a wrap account or do you pay transactional” and the client says “I pay $500 a year, because 2 days ago I signed a new contract with my Ameriprise Advisor and told him I did not want to pay $500 a year plus transactions” and the advisor says “Oh you don’t ever pay me a dime. The investment company pays me. You don’t pay any fees”. Thats a flat out lie that needs to be addressed.
This situation is totally different than anything you guys are posting. You are continuing with this whole “I bash other advisors” and “say we are cheaper”, thats not what I do at all.
You are taking a question I asked here ()<-------------------------------------------------------------------------------------------------------->() and coming over here with it. Thats the name of this site.
The south and the heartland are both traditionally considered the bible belt. Its definition has broadened over time and now includes places like OK. Not that it matters, this is a forum for financial advisors not preachers. Plus, Windy I don’t think you even believe in god, what do you care?
- because he is GodThe south and the heartland are both traditionally considered the bible belt. Its definition has broadened over time and now includes places like OK. Not that it matters, this is a forum for financial advisors not preachers. Plus, Windy I don’t think you even believe in god, what do you care?
Volt I now believe what you said about everyone on this site. You guys are idiots. IF you have had any appointments, you know that one of the first things a client asks is, “How do you get paid”. I simply asked, “How did you pay before”. End of story. The “Fee” conversation ALWAYS comes up. I simply explain it in black and white and ask how they paid before, because it gives me an idea of where they came from. You constantly try and find holes in everything to bash upon. Even if it makes absolutely no sense to what I’m saying. I’m not positioning anyone on fees. That’s idiotic, because it’s no cheaper at any firm unless your a DIY. That’s like saying the omelette I cooked earlier is cheaper than the one you cooked this morning. It’s dumb, but I can promise you mine tastes better :). I’m simply having that conversation, which is something you should be doing too. Maybe it’s one of your clients that i’m stealing?
one of the first things a client asks is, “How do you get paid”.
Uhhh, no. Clients want to know what you can do for them that is better than the last guy. Maybe this is one of your first questions from a prospect because YOU ARE POSITIONING PROSPECTS ON FEES.[quote=Jebediah] one of the first things a client asks is, “How do you get paid”.
Uhhh, no. Clients want to know what you can do for them that is better than the last guy. Maybe this is one of your first questions from a prospect because YOU ARE POSITIONING PROSPECTS ON FEES.[/quote]
How can I position anyone that walks in my office, and asks, “How do you get paid”. That’s the dumbest thing i have ever heard. Remember, i started in a down market. In a down market EVERYONE pays attention to fees. I always get that question. My clients know what they pay and that they can get the same prices or better somewhere else. But they stay with me because i go above and beyond for them. You don’t know what I say to my clients and positioning them on fees is NOT what I do.
That has never been the first question I have been asked. Most of the time I am the first one who addresses that. In a down market fees is the last thing they are worried about, they are worried about THE DOWN MARKET. Unless of course you are leading with the "fee" question, which you are obviously doing and Jeb just pinned you on it. Game over, stroke.
I have a client that passed away and i just had a meeting with his son, who is keeping his portion with me but also has $1.4 Million with Ameriprise. He wants me to give him a second opionion on his portfolio. You said yourself most of the 1.4 is in his 401k. You have seen the contract which you don’t understand and have come to the conclusion $500 couldn’t be all he is paying because you can’t do business this way and with a second opinion from another rep who has not seen the contract or statement. He brought in his contract with Ameriprise. Now me being from Jones, I am not accustomed to having a client sign a contract. He said all he pays is $500 a year, with no transaction fees, or wrap fees (other than the $500). His contract did not say anything about fee’s from what I saw, but I would think that there is no way that is all he is paying. Like I said, I know nothing about having clients sign a contract with me, but can any of you give me some tips on nailing this account or pointing out “hidden” fees or statements or whatnot on a client contract, that might make him think twice about the other broker, so that I can bring in this client.
How is this not positioning fees? The $500 is for the financial planning. He is paying for the transactions as well, or in a wrap account. Nonetheless he is paying more than the $500 and doesn't know he is You haven't seen a statement so you don't know either. Yet you are now stating this as a fact that you pointed out to get the prospect upset about the fees he is paying. What if the $500 is an charge for advice on the 401k and this is what the contract covers, a fee for service agreement. You may well be confusing his large 401k account (your words) with his small Ameriprise account. But you don't know because you haven't seen the statement and you don't understand the contract. Who is the dbag if you have upset the client over a situation you do not have all the fact for and have carelessly moved forward anyway? What if you are wrong? Actually i just spoke with the client again. He didn't know. He's pretty pissed about it though. YaY for me! Good job, you have upset someone over a situation you do not understand part of and do not have all the facts on the rest.... over fees. But you don't position yourself on fees. I'm not positioning anyone on fees. When I ask a client, "Are you in a wrap account or do you pay transactional" and the client says "I pay $500 a year, because 2 days ago I signed a new contract with my Ameriprise Advisor and told him I did not want to pay $500 a year plus transactions" So he just walked in and asked or you asked? You are contradicting yourself. This is why you get the responses you do. IF you have had any appointments, you know that one of the first things a client asks is, "How do you get paid". I simply asked, "How did you pay before". End of story. The "Fee" conversation ALWAYS comes up. I simply explain it in black and white and ask how they paid before, because it gives me an idea of where they came from Fees are usually one of the last things that come up in my experience. How can I position anyone that walks in my office, and asks, "How do you get paid". Again your own posts contradict themselves.Ok, since no actual Ameriprise advisor replied here... here it is.
The guy is paying a $500 planning fee. Many advisors make money on planning fees only, esp since alot of clients would not roll their money in. The question is, is the guys money at Ameriprise or somewhere outside?
Also, if the client transfered in the money, and just house holding it at Ameriprise, and doesn't make trades, there is the reason why he might not of been hit with fees.
If he was in a wrap account, which there are 2 types at Ameriprise, it shows on the statements the fees that are being paid.
As previous poster mentioned, it is not all about the fees. If you are competing on fees, you will go out of business sooner or later unless your name is Walmart.