Expense Accounts?

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May 16, 2012 7:45 am

Just curious, do any of the firms out there allow Associates to use any form of "expense account" or give them access to merchandise? If, for instance, I just get Dr. Chad Moneybags VXI, PhD. to rollover a $20 million dollar retirement account, will a firm give me their blessing (and $$$) to take him out to a $300 steak dinner? 

May 16, 2012 8:39 am

No. And if they do, it comes out of the money you earn. You have to determain what your clients are worth to you, it's a business decision. If you're earning  50bips on 20 million, that's $100,000 a year in gross production. That's worth a nice dinner.

May 16, 2012 12:22 pm

Ha, agreed. $100,000 / year "in gross production" is industry speak for "I'd be making an additional $100,000 per year," correct?

May 16, 2012 4:22 pm

[quote=CashMonger9000]

Ha, agreed. $100,000 / year "in gross production" is industry speak for "I'd be making an additional $100,000 per year," correct?

[/quote]

No. I don't know what your payout rate is. 

May 16, 2012 4:22 pm

[quote=CashMonger9000]

Ha, agreed. $100,000 / year "in gross production" is industry speak for "I'd be making an additional $100,000 per year," correct?

[/quote]

No. I don't know what your payout rate is. 

May 16, 2012 8:58 pm

A good general rule:  Create a "Retained Earnings" savings account and put 10% of your earnings in there.  Easy to track, especially for tax purposes.  This is your piggy bank for taking care of clients.

May 16, 2012 9:33 pm

[quote=Mr. Sweaters]

A good general rule:  Create a "Retained Earnings" savings account and put 10% of your earnings in there.  Easy to track, especially for tax purposes.  This is your piggy bank for taking care of clients.

[/quote]

Good idea! Thanks! 

May 17, 2012 12:00 pm

FINRA limits gifts to $100 annually.

May 17, 2012 1:07 pm

[quote=Amber_M]

FINRA limits gifts to $100 annually.

[/quote]

But a working dinner doesn't fall under that rule. 

May 17, 2012 2:18 pm

Business development is not considered gifting, and much of it can also be written off when tax season rolls around.

May 17, 2012 11:11 pm

[quote=Mr. Sweaters]

A good general rule:  Create a "Retained Earnings" savings account and put 10% of your earnings in there.  Easy to track, especially for tax purposes.  This is your piggy bank for taking care of clients.

[/quote]

Yep, Re-invest 10% of your production/earnings into marketing and personal development.

May 17, 2012 11:19 pm

Also, to the OP, back in the days, Ameriprise would let me get reimbursed.  Managers had Amex cards too.  So in short, develop the relationship with your manager, however don't feel entitlted to anything.  Accept it as cost of doing business.

Lastly, you don't need to spend alot of money on a client, a simple personal hand written note will do far more than a $200 dinner.

May 18, 2012 8:59 am

[quote=aeromaks]

Also, to the OP, back in the days, Ameriprise would let me get reimbursed.  Managers had Amex cards too.  So in short, develop the relationship with your manager, however don't feel entitlted to anything.  Accept it as cost of doing business.

Lastly, you don't need to spend alot of money on a client, a simple personal hand written note will do far more than a $200 dinner.

[/quote]

Thank you. Well said. That certainly helps. :)

On another note... Can someone tell me 1.) Why it is generally not advisable to take accounts from family? Say, for instance, if your wealthy father / in-law / uncle wants you to invest some money for them? and 2.) When gathering up phone number to call to reach out to prospective clients... do many people decide to purchase leads from websites like infoUSA?

Thanks!

May 18, 2012 9:53 am

Who said it was not advisable?  Do you think you can do a better job for your family member than their current advisor?  If so, you have a duty to help them.

Get phone numbers anyway and everyway you can.

May 18, 2012 11:02 am

[quote=Element]

Who said it was not advisable?  Do you think you can do a better job for your family member than their current advisor?  If so, you have a duty to help them.

Get phone numbers anyway and everyway you can.

[/quote]

Element, this would be my gut reaction. If family / friends WANT me to invest their $, who am I to say no? Don't I owe that to them? It's also money in my pock and the chance for refferals if I do well. At least, that's the way I see it. Anyway, this is from the 500 Day War post:

"- Don't solicit or accept friend or family accounts. In addition, politely let them know that you are not to be called at work before 6 pm unless there is an emergency.  No time for idle chit/chat and friendly calls often turn into long conversations.  Keep up contact evenings/weekends."

I guess this one is debatable? 

As far as the phone numbers... I'm thinking that a combination of scrolling down corporate directories, purchased leads, and people who I already know would probably make up amount of people who I could call for business...

May 18, 2012 11:07 am

I've never known anyone to actually follow the 500 day war.  Would it work? Of course... this is a numbers game.

If accounts come to you... go for it man!

May 18, 2012 12:57 pm

[quote=Element]

I've never known anyone to actually follow the 500 day war.  Would it work? Of course... this is a numbers game.

If accounts come to you... go for it man!

[/quote]

Thanks Element, I'm going to check out your blog. 

May 18, 2012 1:29 pm

[quote=Element]

I've never known anyone to actually follow the 500 day war.  Would it work? Of course... this is a numbers game.

If accounts come to you... go for it man!

[/quote]

Thanks Element, I'm going to check out your blog. 

May 20, 2012 8:04 am

If you have a good manager and you are exceeding your hurdles, then they may help you out with something like what you mentioned with regards to a steak dinner for a large prospect.  Experience I have had in the past was, if you can prove that business was generated from the dinner (by showing a transfer in or deposit to the new account), then they will authorize it on a case by case basis.  This does not mean go back to the well too many times and get greedy, but if have proved that you are working smart, then you may have a chance.