Trainee Cost Experience with Morgan Stanley Smith Barney
Just about to leave a Morgan Stanley Smith Barney branch and have been there just over a year.... Does this firm actually pursue coming after you on the training costs or enforce the Non-compete 1 year? And if so, which firms are usually ok with paying these costs so I don't have the personal liability? It's a pretty big chunk of change and this is such a grey area from everyone that I talk to about it.... I talked to EJ the other day and they said they wouldn't cover it... I know ML would though, from what I've heard... Any insight helpful, just really curious if anyone out there has had this experience with MSSB, and if you don't pay it, what happens? Can they ding your credit or screw up your Security Licensing records?
I think most of the time it depends on why and how you are leaving..
A. Low production: Probably not going to care
B. Decent production: Will probably come after you but will settle for less than original amount.
Not sure about your credit(though I would guess it would be possible)
Why are you leaving after 1 year?(assuming you were brand new and spent 3 months in training, you have only worked there for 9 months)
09 was a terrible year for gathering new assets, especially starting right after bottom hit... Most of my national class is getting the news that we will get the boot soon, even though we are 9-10 months into production... They kept the same high ass bar at over $300K per month, and didn't adjust for 08-09 meltdown... Realistically, that equates to bad timing on getting into industry I guess...
I rather take my chance in stock investing. It's that time of the year for quadruple witching – meaning a lot for stock traders, but average folks still have to go to work. What happens is that in a certain part of the year, the stock market goes nuts because it's getting towards the end of a fiscal quarter, and options on stock futures are up, and usually, right before the end of trading, people go crazy, selling lots of stocks, prices wildly fluctuating, and a lot of people left running for payday cash advances to make up any losses if needed.
No offense Ghekko, but I don't think I would categorize $300K in AUM per month as a "high ass bar". That's about $4mm AUM per year. That's about average at Jones of those that "make it". That's like one or two decent accounts per month. For someone in their first year, who should be spending 85% of their time prospecting (and 15% in front of clients), that seems fair. If you think the bar will be lower elsewhere, think again. What do you expect, $200K per month?
I recently switched firms, for different reasons all together and among the Big Firms, it was explained to me that there is a "Protocol" that exists which prevents them from pursuing training costs with each other (i.e. I take yours hostage, you take mine. We call it even.) so, as long as you stay in the big firms, you should be fine, BUT...you may want to re-evaluate yourself in this business. If you're making excuses as to why you can't grow, then you're heading in the wrong direction. You should be thinknig of ways to surpass this goal, even if it is crazy (to you). The fact is that there are people doing it every day. I started when the market was at the highest point ever (month 0, DOW 14k+) and on my first anniversary, the DOW had gone down every month in a row and I averaged 500k a month Net New Money. That being said, my first year sucked, as you can find by reading other posts, but my second year rocked. First year I avged maybe 250k a month, and second year 1mm. keep your head down, get off this friggin' forum and stay on the phone.
in talks w/ mssb, if you're getting the boot why are they still hiring??
Phil ask the branch manager how many rookies sat in you seat?
Remember he will lie to you every time his mouth is open!
You can trust Osoma bin laden more than a wire house.
Lie about what? The number of rooks before me? If the failure rate is 80% then I would have to believe that 8 have sat there before me and have washed out and 2 are still in the firm producing. Further I could really give a sh!t who failed before me. I will not be relying on the BM or the training to make me successful. If I feel unprepared after training then I will have to pay to go to a seminar or figure it out myself.
Though I have not signed on yet, I don't have any concerns about getting cut if I am below $500k/mo. If I'm understanding this process correctly $500k would be ~5k/mo or 60k in gross production on the year (again give or take) yielding a whopping $24k split. Dee-ammm!!!!!!!!!!!! Not enough to keep the lights on. I think that getting cut when you're below $300k is akin to a mercy killing. I have talked to three separate acquaintances who are super-producers and they felt that you either always kill it or you don't. SO, if you can't work yourself up into that $1M+ a month then you aren't going to get there for a long damn time. Which is fine I suppose, unless you have a family.
Not talking smack, just how I see it.