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Oct 17, 2009 11:43 am

So I met a guy yesterday who says he has a firm. He charges high net worth clients a percentage (1-1.5% according to him) of their assets for advice and holds the assets in his "trust company", but then has a broker with another company place the trade, for ANOTHER fee. Is this normal? It sounds pretty damn expensive to me.

Oct 17, 2009 11:55 am
Ronnie Dobbs:

So I met a guy yesterday who says he has a firm. He charges high net worth clients a percentage (1-1.5% according to him) of their assets for advice and holds the assets in his "trust company", but then has a broker with another company place the trade, for ANOTHER fee. Is this normal? It sounds pretty damn expensive to me.



Maybe he means ticket charges, but for a HNW client that wrap sounds high. I know people that do something similar and charge less. I don't know though, because our closest comparable solution is Advisory Solutions.

Oct 17, 2009 1:24 pm

Ya but to charge the client the 1-1.5% wrap and THEN charge for each transaction. Seems fishy.

Oct 17, 2009 1:26 pm

The clients get their statements every month or quarter.  If they don't like number at the bottom then they can move their money.  If he's got a successful business then most of his clients must be happy with that bottom number. 

Oct 17, 2009 4:46 pm

wow ronnie you sound smart, can you help me?

Oct 17, 2009 5:25 pm

Forget it ice - he's too wrapped up in A-shares (notice I did not say Jones) to understand the different models.



Hey Windy, did you know that there are advisors who have institutional clients that use different broker/dealers depending on what kind of execution they get on trades? And UHNW and HNW clients?



Did you know that there is a world outside of "If you have some money available I think you should buy some today?".

Oct 17, 2009 5:29 pm

A quick example:



I charge clients anywhere from .5% to 2% of assets. Or a flat fee. Or an hourly fee. All depends on the arrangement they would like.



They pay the transaction cost of the custodian (Fidelity, TDAmeritrade, E-trade, Schwab, etc.). Usually between 7 and 30 dollars depending.



Now what I am about to say is going to make you defensive. But here goes: This is why you should not be managing people's money.   You know nothing about the industry. And it's not your fault.

Oct 17, 2009 5:34 pm
Moraen:

A quick example:

I charge clients anywhere from .5% to 2% of assets. Or a flat fee. Or an hourly fee. All depends on the arrangement they would like.

They pay the transaction cost of the custodian (Fidelity, TDAmeritrade, E-trade, Schwab, etc.). Usually between 7 and 30 dollars depending.

Now what I am about to say is going to make you defensive. But here goes: This is why you should not be managing people's money.   You know nothing about the industry. And it's not your fault.


 
And you knew nothing about the industry, when you first started too. I understand and know everything you just told me. The way the guy explained it, just seemed to be REALLY high. Stop trying to use the thread as a "Windy doesn't know anything" thread. We all know that I just started. You aren't smart for figuring that out.
Oct 17, 2009 5:38 pm
Ronnie Dobbs:
Moraen:

A quick example: I charge clients anywhere from .5% to 2% of assets. Or a flat fee. Or an hourly fee. All depends on the arrangement they would like. They pay the transaction cost of the custodian (Fidelity, TDAmeritrade, E-trade, Schwab, etc.). Usually between 7 and 30 dollars depending. Now what I am about to say is going to make you defensive. But here goes: This is why you should not be managing people's money.   You know nothing about the industry. And it's not your fault.





And you knew nothing about the industry, when you first started too. I understand and know everything you just told me. The way the guy explained it, just seemed to be REALLY high. Stop trying to use the thread as a "Windy doesn't know anything" thread. We all know that I just started. You aren't smart for figuring that out.





Don't you have your MBA?



I never assumed that just because Jones didn't do it, didn't mean it wasn't ethical. His wrap fee seems a little high, but if he is adding a ton of alpha, my guess is it's fair.



I charge a lot more than most indy's, but my clients see all of the fees they pay.

Oct 17, 2009 5:50 pm

Yes I have my MBA. It just seemed to be a little high. That was all.

Oct 17, 2009 5:52 pm
Ronnie Dobbs:

Yes I have my MBA. It just seemed to be a little high. That was all.



You are working on your MBA, you do NOT HAVE YOUR MBA.  It's sort of like you telling us about your great months before the business is booked.

Oct 17, 2009 5:57 pm

Anybody look at this thread and wonder if there should have been a "Bi-" in front of it?

Oct 17, 2009 6:04 pm
SometimesNowhere:

Anybody look at this thread and wonder if there should have been a "Bi-" in front of it?



bravo   I thought the same thing but once Windy started telling people he HAD his MBA I forgot about it.

I know a guy in his region so I get alllll the special Windy updates.

Oct 17, 2009 6:33 pm

lol. If you know a guy in my Region. Then you wouldn't be arguing with anything I say. By the way, I am done with my MBA. Just for your Information.

Oct 17, 2009 6:40 pm

Good for you, congratulations.

Oct 17, 2009 6:47 pm

Maybe your talking about Ben. He just went to PDP the same week you did, I believe.

Oct 17, 2009 6:48 pm

Nope, he's a vet ... sorry Wind, I won't tell ya.

Oct 17, 2009 6:52 pm

lol That's cause your a liar.

Oct 17, 2009 7:01 pm
Ronnie Dobbs:

lol That's cause your a liar.



you're

The difference between me and you Windy.  I'm not a prick so it's easy for me to build relationships with people.  I hope you are not so shut in that you don't reach out to people outside your region. Minus spiff. Lots of great ideas and perspectives out there.

It's too bad the people in your region know what kind of person too, you just can't hide a-hole.

Oct 17, 2009 7:07 pm

LOL....Thats the problem. I'm not an a-hole. Just on this site. I actually reach out to alot of people and I help whoever I can. Being judged on a forum, where you cannot say a word without being bashed is not worth anyones time. If you know anyone in my region, it is someone who has shut themselves out from the rest of the region. I talk with the other FA's daily, as well as eat lunch and share ideas. If I was an A-hole, I wouldn't be invited.



If I was an A-hole, you wouldn't be pming me asking me if you can call me.