Who Still Offers B Shares & Best Bond Funds
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Yes, and we have several fee based models which we have complete control over. Whats the issue w/Ameriprise? We can do everything, but the only real issue investment-wise is the lack of annuity carriers. Who gives a flying f*** about annuities if you don’t do a lot of annuity business.
Here's where some people are missing the point of the fee based platform and the whole suitability/fiduciary issue. I have to admit, I am struggling through it from an indepent RIA viewpoint. If you are offering a fee platform you are (or soon will be according to the news) held to the fiduciary standard. Your firms have processed this. They have formed Investment Committees tasked with the management of the due dilly process for the model portfolios that are ultimately recommended. A single person couldn't possibly go through the hoops that they are going through and expect to produce at the same time. If you deviate from the model portfolio, what are the reasons and rationale? What type/amount of research went into that decision? I have in front of me right now the Due Diligence Process Manual for a broker/dealer provided platform. It's 33 pages long and more complex than all get out. Can you honestly say that you went through as thorough a process as the Investment Committee in coming up with your own model, and then bring that into context of fiduciary responsibility?Makes me wish EDJ had a fee based platform that we as advisors actually had control of and could build the portfolio however. I think every client deserves the right to decide if they want to pay an annual fee or transactional. Of course at Jones we have Advisory…Where we give EDJ COMPLETE control!..That’s great…except then Jones has COMPLETE control of our business:) …Then we are just babysitters and any chump can do that job…
[quote=Spaceman Spiff]
Technically that's not accurate. You could do Advisory on the custom model side. You have more control over it then. Granted, you still have to stay within the guidelines with percentages in G/I, G, etc and you can't use individual securities, but if control is what you're looking for then you've got quite a bit of it that way. If you see Advisory as reducing your role with your clients down to simply babysitting, then you're missing the point of the program altogether. With my Advisory clients I've become MORE involved with them rather than less. We just spend more time talking about things other than performance and fund companies. [/quote] Spiff I still think Advisory is more for control over our business than anything. I know we have the side that you have "more" control over, but it's no different than having a 401K and having limitations on what you can choose from. Picture this: Spiff has 90% of his book in Advisory. What happens when you have one little quarrel with Jones. You are easily replaced. They boot you out and put someone else in your place to talk about other things, other than their performance, which in reality, is the only reason that client is sitting across the desk from you. To know his performance for the last quarter, month, year...whatever...Take the ability for an advisor to ACTUALLY build a portfolio and you are useless..To me the best part of this job is building the portfolio and doing the research....Maybe thats just me... Speaking of this, I have a good friend who works in the IT department on supporting different programs. We were talking a week or 2 ago and he was telling me about some of the new programs Jones has coming out. Did you know that Jones is working on a system that you put all the parameters in for a client, age, income, etc...and it builds a portfolio for you? Thats control my friend..... I think we should have a real option of fee based. I have LOTS of clients who would go for the fee, if they could trade stocks and swap fund families without any cares. In some cases, it's just a better deal for them...in others..transactional is best. Although I highly agree with a post someone had on here recently, that Bonds should never be wrapped...Yeah, well. Thats just, like, your opinion, man.Ameriprise=weak minor league ball
Actually Jones is going the other way with that. By going fee based with Advisory, we have no fiduciary responsibility, because Jones makes all the decisions. Atleast thats what J-Dub said....Here’s where some people are missing the point of the fee based platform and the whole suitability/fiduciary issue. I have to admit, I am struggling through it from an indepent RIA viewpoint. If you are offering a fee platform you are (or soon will be according to the news) held to the fiduciary standard. Your firms have processed this. They have formed Investment Committees tasked with the management of the due dilly process for the model portfolios that are ultimately recommended. A single person couldn’t possibly go through the hoops that they are going through and expect to produce at the same time. If you deviate from the model portfolio, what are the reasons and rationale? What type/amount of research went into that decision? I have in front of me right now the Due Diligence Process Manual for a broker/dealer provided platform. It’s 33 pages long and more complex than all get out. Can you honestly say that you went through as thorough a process as the Investment Committee in coming up with your own model, and then bring that into context of fiduciary responsibility?
Actually Jones is going the other way with that. By going fee based with Advisory, we have no fiduciary responsibility, because Jones makes all the decisions. Atleast thats what J-Dub said....[/quote] Uhhhhh....That was actually my point. You are acting as a fiduciary, Jones provides the CYA.[quote=joelv72]Here’s where some people are missing the point of the fee based platform and the whole suitability/fiduciary issue. I have to admit, I am struggling through it from an indepent RIA viewpoint. If you are offering a fee platform you are (or soon will be according to the news) held to the fiduciary standard. Your firms have processed this. They have formed Investment Committees tasked with the management of the due dilly process for the model portfolios that are ultimately recommended. A single person couldn’t possibly go through the hoops that they are going through and expect to produce at the same time. If you deviate from the model portfolio, what are the reasons and rationale? What type/amount of research went into that decision? I have in front of me right now the Due Diligence Process Manual for a broker/dealer provided platform. It’s 33 pages long and more complex than all get out. Can you honestly say that you went through as thorough a process as the Investment Committee in coming up with your own model, and then bring that into context of fiduciary responsibility?
My bad for mis-reading. I, however, still think the best part of this job is doing the research and building the portfolio. Not very keen to giving that up. After all, that is our job.
[quote=Ronnie Dobbs][quote=Spaceman Spiff]
Technically that's not accurate. You could do Advisory on the custom model side. You have more control over it then. Granted, you still have to stay within the guidelines with percentages in G/I, G, etc and you can't use individual securities, but if control is what you're looking for then you've got quite a bit of it that way. If you see Advisory as reducing your role with your clients down to simply babysitting, then you're missing the point of the program altogether. With my Advisory clients I've become MORE involved with them rather than less. We just spend more time talking about things other than performance and fund companies. [/quote] Spiff I still think Advisory is more for control over our business than anything. I know we have the side that you have "more" control over, but it's no different than having a 401K and having limitations on what you can choose from. Picture this: Spiff has 90% of his book in Advisory. What happens when you have one little quarrel with Jones. You are easily replaced. They boot you out and put someone else in your place to talk about other things, other than their performance, which in reality, is the only reason that client is sitting across the desk from you. To know his performance for the last quarter, month, year...whatever...Take the ability for an advisor to ACTUALLY build a portfolio and you are useless..To me the best part of this job is building the portfolio and doing the research....Maybe thats just me... Speaking of this, I have a good friend who works in the IT department on supporting different programs. We were talking a week or 2 ago and he was telling me about some of the new programs Jones has coming out. Did you know that Jones is working on a system that you put all the parameters in for a client, age, income, etc...and it builds a portfolio for you? Thats control my friend..... I think we should have a real option of fee based. I have LOTS of clients who would go for the fee, if they could trade stocks and swap fund families without any cares. In some cases, it's just a better deal for them...in others..transactional is best. Although I highly agree with a post someone had on here recently, that Bonds should never be wrapped...[/quote] Stepping back and looking at the big picture, you make a very good point. You guys have to remember that technically you are employees of the firm. It reminds me of the evolution of commercial banking. Loan officers used to do the loan analysis themselves and present it to loan committee, and ultimately to the board (if it was large enough). Credit departments sprung up to support loan officers, taking some of the analytical burden off of their shoulders, but the loan officer ultimately called the shots. Now the tables are turned, and the loan officers are nothing more than paper shufflers taking orders from the credit department. Which makes me glad I own my own business now.it's Mel and Shoe[/quote] I need to start looking at this site at home more often. The only thing I see in your avatar in the guy with the question mark in his head.[quote=3rdyrp2]That avatar is killing me mlgone! Funniest sh!t I’ve seen.
Picking mutual funds that are approved by EJ is not research or building a portfolio. This is not a shot. I don't do research either.My bad for mis-reading. I, however, still think the best part of this job is doing the research and building the portfolio. Not very keen to giving that up. After all, that is our job.
Wind - I guess the reason I like advisory is so that I don't have to do all the research. I can't possibly do enough quality research to improve upon what those analysts do. It's just not possible for me to run my business, post on here so much, and search the universe of funds for the right combination to use.
I think in this business you have to figure out what your focus is going to be. Guys like BondGuy or Gaddock know the investment side of what they do like the back of their hands. That's why they attract new clients. I don't really care anymore to get bogged down with whether Keeley is a better small cap manager than American Funds. OK, well, maybe that wasn't a good example, but you get the point. I'd rather spend my time doing what I am this morning - working with a client who wants to retire next year and just simply wants to know if she can. I've got her 401k statement, her budget, her pension statements, her SS statements, her insurance, her 529 plans, etc all scattered all over my desk. Not one time in this entire conversation with her have we talked about mid-cap funds. She doesn't care. She wants to know if she's going to run out of money before she dies. If using Advisory means that I can focus more on retaining and attracting clients like her, then I'm all for it.it's Mel and Shoe[/quote] I need to start looking at this site at home more often. The only thing I see in your avatar in the guy with the question mark in his head. [/quote] Where do you access this forum from....Communist China?[quote=mlgone][quote=3rdyrp2]That avatar is killing me mlgone! Funniest sh!t I’ve seen.
Picking mutual funds that are approved by EJ is not research or building a portfolio. This is not a shot. I don't do research either. [/quote] Ron, many of us use funds at Jones that are NOT part of their approved, preferred, focus, whatever-lists. We have access to about 75 different fund families, so there's no shortage of options. However, I wish I had my choice of what funds to use in Advisory, not just the funds they put in the program (which is what I think Windy was getting at). The problem I have with Advisory is not so much the funds they choose (they are generally pretty good in their categories), but the asset allocation methodology. I don't necessarily buy into "style-box" investing, which is exactly what Advisory Solutions is. Not one of my "favorite" funds is in Advisory Solutions, because most of them are not category-specific. Jones does not choose funds that have much flexibility in approach. They want to totally control the asset allocation. I prefer more of a core/satellite approach, and want to be able to tweak my allocations as I see fit.[quote=Ronnie Dobbs]My bad for mis-reading. I, however, still think the best part of this job is doing the research and building the portfolio. Not very keen to giving that up. After all, that is our job.
Picking mutual funds that are approved by EJ is not research or building a portfolio. This is not a shot. I don't do research either. [/quote] I work within the guidlines I have, but for the most part we can purchase almost anything Ron. I DO, do my research. I enjoy the whole process.[quote=Ronnie Dobbs]My bad for mis-reading. I, however, still think the best part of this job is doing the research and building the portfolio. Not very keen to giving that up. After all, that is our job.
it's Mel and Shoe[/quote] I need to start looking at this site at home more often. The only thing I see in your avatar in the guy with the question mark in his head. [/quote] Where do you access this forum from....Communist China?[/quote] No, but I suspect something similar, like an EDJ workstation.[quote=Spaceman Spiff][quote=mlgone][quote=3rdyrp2]That avatar is killing me mlgone! Funniest sh!t I’ve seen.
There are guys like B24 that do things differently at Jones and that’s great. I think B24 is more suited to be an independent, but that will be a decision he’ll have to make.
Wind - Jones didn’t hire you to manage portfolios and select securities for people. They hired you to grow assets and make money for the firm. They pay people to do the stuff you want to do.
Like Ron said, it’s not a dig. I would like nothing better than to have other people deal with the client side while I simply make investment recommendations.
Jones has the scale to hire people to make investment recommendations and hire brokers to sell it. That’s what you do. If you want to make investment recommendations you can, like B24 and some others there, but that’s not what Jones hired you for.
Spiff, B24 - Have you heard about this new program that involves, putting in paramaters (age, etc…) and the program builds the portfolio for us? That’s the kind of thing I don’t like. Advisory is not too far off. I understand Spiff, what you are getting at, but at the same time, you have that retirement conversation once, maybe twice…Everything else is performance. I don’t think I have EVER had a client come in for an appt and not wanna talk about their performance.
Not arguing that, good point, but that doesn't take away the fact that I run my business how I want, within "Jones" guidelines of course. I sell plenty, but I also greatly enjoy building portfolios. I in no way want to be an analyst, but I think an advisor should be very educated on the process, the investments, and know how to build a portfolio properly. Not just shove them in something. Of course i'm sure everyone does that in the beginning...I enjoy the research, because Spiff....then when that person comes to you and says "Can I retire", you can say, "Yes, you can because, you and I developed the right plan and stuck with it", and not say..."Whew...I'm glad Jones partnered with the right companies!...Good job Advisory committee, you didn't screw me this time!"....There are guys like B24 that do things differently at Jones and that’s great. I think B24 is more suited to be an independent, but that will be a decision he’ll have to make.
Wind - Jones didn’t hire you to manage portfolios and select securities for people. They hired you to grow assets and make money for the firm. They pay people to do the stuff you want to do.
Like Ron said, it’s not a dig. I would like nothing better than to have other people deal with the client side while I simply make investment recommendations.
Jones has the scale to hire people to make investment recommendations and hire brokers to sell it. That’s what you do. If you want to make investment recommendations you can, like B24 and some others there, but that’s not what Jones hired you for.
Can't they go to Fidelity for that and not the the 5%?Spiff, B24 - Have you heard about this new program that involves, putting in paramaters (age, etc…) and the program builds the portfolio for us? That’s the kind of thing I don’t like. Advisory is not too far off. I understand Spiff, what you are getting at, but at the same time, you have that retirement conversation once, maybe twice…Everything else is performance. I don’t think I have EVER had a client come in for an appt and not wanna talk about their performance.