Wash out question

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Aug 8, 2006 7:09 am

My understanding is that many FAs "wash out" of this business. My question is, if someone gets their series 7 and 66 is it probable to be able to get pretty good salaried position at a bank or other companies? Any "success" stories of people who didn't make it going on the other careers?


Thanks.  



Aug 8, 2006 7:18 am

NASD Newbie washed out as a producer after a few years, and he landed a cushy back office job where he didn't have to accomplish anything.


You might ask him whose ass he had to suck to get that little plum!

Aug 8, 2006 7:20 am

I have seen people transition to wholesaling, general sales jobs, and
some banking related sales (trust, treasury management, etc).

Aug 8, 2006 7:48 am

you can go to wholesaling for sure, but usually it will require a stint as an internal first and it may also require relocation depending on where the rep is living.

Aug 8, 2006 10:23 am
FA Prospect:

My understanding is that many FAs "wash out" of this business. My question is, if someone gets their series 7 and 66 is it probable to be able to get pretty good salaried position at a bank or other companies? Any "success" stories of people who didn't make it going on the other careers?


Thanks.  



The primary reason for FAs washing out is failure to open new accounts and bring in assets. Many enter the business with a misconceived idea of what the job is. Since prospecting is the main roadblock many wirehouse washouts try banks where there is a built in client base to prospect. This leads to another misconception, that the bank biz is a lay up. It's not.


If the reason for washing out had anything to do with failing to meet asset goals it's unlikely that other national or regional firms would give the FA a second chance. Some FAs have landed back office jobs or gone to work as sales assistants for large brokers. Many more have landed at the local Ford dealership.

Aug 8, 2006 10:40 am
FA Prospect:

My understanding is that many FAs "wash out" of this business. My question is, if someone gets their series 7 and 66 is it probable to be able to get pretty good salaried position at a bank or other companies? Any "success" stories of people who didn't make it going on the other careers?


Thanks.  





You can certainly land a job with a series 7 in hand, perhaps at a discount broker's branch office or with the sales desk of a mutual fund company.  But the income potential will not compare to that of a full-service financial adviser.

Aug 8, 2006 11:04 am
hubbabubba:

you can go to wholesaling for sure, but usually it will require a stint as an internal first and it may also require relocation depending on where the rep is living.


You can get into wholesaling, for sure?  As in all you have to do is apply?

Aug 8, 2006 11:13 am

as usual, newbie, you add nothing to the discussion. There's always some jacka$$ on an online forum who feels the need to try to prove to others how smart he is.  You sound very bitter.  Are you holding a grudge from childhood?  Maybe you were the last one picked for kickball at recess? 



If FA prospect wants more information he can ask me.     

Aug 8, 2006 11:22 am
hubbabubba:

as usual, newbie, you add nothing to the discussion. There's always some jacka$$ on an online forum who feels the need to try to prove to others how smart he is.  You sound very bitter.  Are you holding a grudge from childhood?  Maybe you were the last one picked for kickball at recess? 


If FA prospect wants more information he can ask me.     



And just what do you bring to the table, a high school diploma and six months with a chop shop?

Aug 8, 2006 11:23 am

I think NASD was implying that one should not assume a job as a wholesaler is automatic for a failed FA.  But I think this is a valid question.



Aug 8, 2006 11:27 am

hahaha.  No an MA and extensive work with an international fund company, you idiot.


If you are so successful, then why are you trolling around here picking fights?  Your comments are not clever, contrary to what you might believe.  You're just a fool like the other trolls who inhabit cyberspace.  Don't waste my time and I won't waste your's.

Aug 8, 2006 11:29 am

Opie, I don't think that's what NASD implied.  If you read his posts long enough, you'll get the picture. 


Wholesaling is one option for an advisor who gets blown out the door or just wants a change.

Aug 8, 2006 11:31 am
hubbabubba:

hahaha.  No an MA and extensive work with an international fund company, you idiot.


If you are so successful, then why are you trolling around here picking fights?  Your comments are not clever, contrary to what you might believe.  You're just a fool like the other trolls who inhabit cyberspace.  Don't waste my time and I won't waste your's.



You're the guy who said that a failed broker could catch on as a wholesaler, for sure.  That was challenged and you get all snippy.


Me thinks you protest too much.


What's your experience at the international fund?


Aug 8, 2006 11:59 am
hubbabubba:

hahaha.  No an MA and extensive work with an international fund company, you idiot.


If you are so successful, then why are you trolling around here picking fights?  Your comments are not clever, contrary to what you might believe.  You're just a fool like the other trolls who inhabit cyberspace.  Don't waste my time and I won't waste your's.



We would all be better off not to respond to NASD

Aug 8, 2006 12:02 pm
vbrainy:
hubbabubba:

hahaha.  No an MA and extensive work with an international fund company, you idiot.


If you are so successful, then why are you trolling around here picking fights?  Your comments are not clever, contrary to what you might believe.  You're just a fool like the other trolls who inhabit cyberspace.  Don't waste my time and I won't waste your's.



We would all be better off not to respond to NASD



I agree, just read what I have to say and pay attention.  I don't need any comments from the peanut gallery.

Aug 8, 2006 12:10 pm

newbie, I can't help it that you are too literal.  That's not my problem.  Someone who was/is a broker can apply to a fund company like anyone else.  In fact, contact a recruiter.  There are probably a few on this very forum.  I know many who have successfully done so.  That's not too difficult to understand, is it?


Why would I be snippy?  Did it ever occur to you that your act is tired?  People like you are a dime a dozen on web forums.  Some of us are here to ask questions and to assist others in having their questions answered.  It's what professionals do.  You are clearly not professional so I have no patience with you.  All the negativity directed at you is self imposed.  Don't like it?  Then post something worthy.  Maybe then you might begin to earn some respect.  As it stands, you are still a troll and will be treated as such.


So, you can continue to try to provoke me or you can answer other people's  questions without trying to make them feel like idiots.  The choice is yours. Of course, you know that if you continue with your behavior you'll only prove my point. 



Hopefully, we will see a new Newbie?


With that, I'm done with you.

Aug 8, 2006 12:11 pm

If you wash out of an FA trainee program, you have a choice of several directions:

You can move to a lesser bank or brokerage with lower expectations.  (Common).

You can move to a sales position outside the industry. (Common)

You can move to a non-production position within the same firm  (Sometimes).

You can move to a non-production position with another firm (Rare).

In exceptional circumstances, you can move to a production position with another firm.  You should only try this if you have a solid business plan and a convincing reason why things will be different this time.  (Don't kid yourself, this is very rare.)


To answer your other question, yes there are success stories.  Most of our trainee-level placements are successful FAs looking for a stronger program.  However, we occasionally find and submit "failures" with exceptional backgrounds.  Here are some of these "failures" that have gone on to be successful:

A top mortgage producer who built his business on seminars, networking and referrals became an FA with a regional.  His sales manager required him to do nothing but cold call nine hours a day, six days a week.  After he washed out, we placed him at a different firm that allowed him to use the same techniques that had made him  successful in his previous career.  He's now at the top of his peer group.
One new FA was very successful finding HNW prospects in his network.  However, they were way too sophisticated for the firm's shallow and proprietary lower-middle-class product mix.  It definitely got the wirehouse BOM's attention when this rookie showed up to the interview with letters saying things like "If you get a job with a wirehouse, then sign me up for a million."One new FA built relationships with several small business owners in his community.  However, his firm required that he refer the commercial relationships to a department in another city.  His clients were very unhappy, since they wanted to deal with one rep who had the total picture.  He is now very successful at a different wirehouse with much different rules for business accounts.
One FA started a tax preparation practice part-time after washing out of a wirehouse's training program.  A few years later he told his HNW tax-prep clients he would be joining a different wirehouse, and asked if they would consider working with him.  Most of his clients said yes, so he started production with a huge pipeline of clients and referrals.Last year a major wirehouse slashed its training program in a highly-publicized downsizing of "underperformers".  I worked with a handfull of FAs who were junior partners on teams.  They were cut because most of their production credits went to the senior partners  (they received salaries in return).  These guys were snatched up immediately by other firms and are doing very well.  These "failures" have also referred several big producers to our firm...




Aug 8, 2006 8:48 pm

Thanks everyone for your responses...especially JCadieus for the insightful post. Assuming that I do get an offer - about the worst can happen if I "don't make the grade" is that I get some excellent training that I can use elsewhere.


Of course, I fully expect to be selected and to be successful but it is always good to have a backup plan!


Aug 9, 2006 4:20 pm
FA Prospect:

Thanks everyone for your responses...especially JCadieus for the insightful post. Assuming that I do get an offer - about the worst can happen if I "don't make the grade" is that I get some excellent training that I can use elsewhere.

Of course, I fully expect to be selected and to be successful but it is always good to have a backup plan!



Thanks for the compliment, FP.  Good luck and let us know how things turn out!