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Advisory Solutions $50K

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May 6, 2009 2:35 am

[quote=breaking news]

I believe Advisory is a great new tool in our quiver but I also know it was introduced to annuitize the business.  Lowering it to 50K just helps us do it quicker.  GP doesn’t like no bonus bracket.  You’ve got vets living in big houses and big lifestyles with a serious pay cut this year.  Check yourself boys and girls.  Make sure your moving clients into this for the right reason.  [/quote]
Best post on this in the whole thread.
May 6, 2009 3:14 am

Jones analysis of anything, be it stock, bond, mutual fund or anything else is subpar.  Sorry, Spiff, that’s just a fact.  Please stop touting your “analysts.”  In the big picture, they kind of suck. 

May 6, 2009 4:18 am
Moraen:

A-shares are the best thing for clients. The best. We believe that. We truly believe that. Oh, wait we’re losing market share to other firms. Advisory solutions is a great fit for a lot of clients. Remember how you sold against advisory accounts for so long… well, now you get to sell them and talk about how ours is better than theirs b/c we have a board of people who rebalance it and guess what? You get to use the same funds you were selling people before, so it’s easy. We are moving from product-based selling to solutions-based selling. We’re awesome. Our advisory platform is the best. If you don’t use that for your clients, use the robust MAP program. Which is also full of lots and lots of awesomeness.

We are offering clients all kinds of stuff now. We won’t help protect them from severe market loss, but we’ll move them into this new solution that will help you annuitize your business and focus on less clients, more service.


  This is exactly it. And the RL's BS their way around it saying, well do what is best for the client. It is this double talk that drives many with the ability to think for themselves away from Jones.
May 6, 2009 2:14 pm

Isn’t it interesting that firms believe that accounts like Advisory Solutions is only in the best interest of the 50m or 100m client.  Apparently it isn’t in the best interest of smaller accounts to have the same types of investments available to them. 

May 6, 2009 2:28 pm
Spaceman Spiff:

If you go indy (which would be the only really logical place to go if you leave Jones) all those things that used to be automatic (including the research and fund selection if you use the models) you now have to do yourself.


Space,



I’m not going to enter the old debate about wrapping MFs vs ETFs vs individual securities, or what the appropriate minimum $ level might be, but I do want to correct one misunderstanding.



Contrary to what you may have been told, my friend, indys do NOT “have to” do all those things you mention by themselves. One certainly CAN do them if you wish, but it’s not necessary: there are many platforms and programs available that perform the same functions you mention, and almost always for a lower all-in price (including your fee and the platform fee) than your single internal program. Some of them are the exact same third party platform you might be familiar with, just with a different name and pricing structure.



That’s not a knock on EDJ or your internal program - it applies more or less to all these programs at any brokerage firm. But if you think this same thing can’t easily be done by indys for lower costs, you aren’t really familiar with the actual options in the independent channel.

May 6, 2009 7:22 pm
Soothsayer:

Jones analysis of anything, be it stock, bond, mutual fund or anything else is subpar.  Sorry, Spiff, that’s just a fact.  Please stop touting your “analysts.”  In the big picture, they kind of suck. 

  Actually, I used to think that as well.  However, one of the things I came to realize is that it's not the quality of the analysts.  It's their over-arching investment philosophy.  If you are a true believer in buy-and hold, which MANY people are, then Jones actually does a pretty good job.  I won't bore everyone with details, but would argue more that the investment philosophy is lacking sometimes, versus the analysis.  And there is not a lot of tangible evidence that the analysts "suck".  Their numbers are on par with the rest of the industry.  I would also say that FA's NEED to think for themselves when it comes to choosing investments.  Use the resources of the firm, but use 3rd party resources as well.  And your clients needs should play a big part in your investment decisions, not just whether the Jones model beat the S&P last year or not.
May 6, 2009 7:36 pm

Who really cares about firm “analysts” anyways ? There aren’t firms who are crushing the benchmarks over long periods and there aren’t firms being crushed by benchmarks over long periods. Same with mutual fund families and companies. It seems like a completely irrelevant way to judge the strength of how well a firm operates from both its employees and their clients.

May 6, 2009 7:38 pm

 have done my due diligence and for the type of program it is, there aren’t many programs that compare in price.  And none of them work exactly like AS does.  Now, you as an indy may choose to only charge the client 1% to manage their portfolio, but you’re not going to do the level of research, allocation, and rebalancing that the AS team does.  Especially at the $50K level. 

  SPIFFY...Crack is wack.  Quit drinking koolaid out of a fire hose....your so funny...
May 6, 2009 8:07 pm

.

May 6, 2009 8:11 pm

Actually Spiff, I have to side with Spears et.al. here.  I have a few friends at Merrill and a few friends that are RIA’s.  Their processes are quite impressive.  And the guys I know at Merrill are not just taking the Merrill boilerplate and running with it.  And FYI, most of them charge around 1%  (granted, they generally don’t TAKE clients under a certain amount, but if they did, their fee would be higher than ours by about 25 bips). 

Spiff, sometimes you REALLY have to take the company line with a grain of salt.  Yes, I have seen many managed accounts come over from other firms that are absolutely crap and absolutely over-charging.  But there are plenty of really good ones out there.  You just don't see them because they won't leave their current advisors.   As a sidenote, one of the RIA's is almost stricly an index/ETF guy, and the other is almost strictly actively managed MFD's.  Both have impressive track records and good busineses, but manage VERY differently.  Neither incorporate any individual securities.  Take that for whatever it's worth.
May 6, 2009 8:13 pm

[quote=noggin][quote=Spaceman Spiff]Why would it be bad and who would it be bad for? 

  How much time do you spend managing a $50K portfolio?  1-2 hours a year, maybe?  How often do you rebalance it?  Once a year or less?  I'd guess most FAs have a small group of funds that they like, probably called Checks and Balances or Founding Funds or something like that and anything in the $50K range gets put in there.  You wouldn't even think about using 20 different funds for $50K.  With Advisory Solutions you can use all the funds you need, rebalance whenever necessary without thinking about it, and still get paid to do the work for the client.  I'd guess for a lot of Jones guys dropping the minimum to $50K puts a ton of people in the funnel for Advisory.    Is it easier to move?  Possibly.  Can you find it less expensive somewhere else?  Doubtful.  Will you get the whole Advisory Solutions group approach with another program?  No.  That program runs on autopilot from an investment standpoint once you put the money in.  If you go indy (which would be the only really logical place to go if you leave Jones) all those things that used to be automatic (including the research and fund selection if you use the models) you now have to do yourself.    I think it's good for Jones, good for the FA, good for the clients who can now participate. [/quote]   Do you really believe that your pricepoint is lower??? You really should do your due diligence before you accept what the home office tells you......[/quote]   Wrong again. Spiff, I really respect your love for firm, but please do not make sweeping statements about other firms Advisory Platforms based on what the STL allows you to know.   Last time they tried that, the presentation was called "Is The Grass Really Greener?" and FA's started leaving in droves. Dumbest thing I have ever seen in business, besides your boy Fes telling FA's/IR's that this would be the best advisory platform in the industry... and then "stepping down" right after it rolled out.
May 6, 2009 8:21 pm

I think Bondguy, Bspears, and B24 should come out with their own individual newsletters for new FA’s to subscribe to and learn from. I am not being sarcastic, I would be a buyer. Although currently we are getting good stuff from them for free on here !

May 6, 2009 8:24 pm

I saw someone resembling Fes giving a tour at Anhueser/Inbev a few weeks ago. He smelled of beer and looked confused.  He was telling some old people about the George Putnam Fund…LOL. He did know his stuff on the clydsdales…I’ll give him that.

May 6, 2009 8:31 pm

Actually Spiff, I have to side with Spears et.al. here.

    B24, don't think there's not an alarm and red flashing lights going off in HQ with that comment.  I'd pack my sh*t tonight and head out...you won't survive the night. Good luck my friend, I hope you find peace where you're going. 
May 6, 2009 8:57 pm

OK, OK.  I give.  Our Advisory Platform sucks, our analysts are crap, and Fes drinks too much. 

May 6, 2009 9:23 pm

Over!  Did you say over?  Was it over when the Germans bombed Pearl Harbor?  Hell no!  And it ain't over now, when the going gets tough...the tough gets going.  What the f*** happened to the Spiff I used to know?  Where's the spirit?  Where's the guts?  This could be the greatest night of your life, but you're going to let it be your worst.  We're afraid to go with you, we might get in trouble.  Well just kiss my a** from now on.  Not me, I'm not gonna take this. 

Come on Spiff this has been your most valiant battle yet.  Don't let them snatch it away from you. 
May 6, 2009 9:30 pm
B24:

[quote=Soothsayer]Jones analysis of anything, be it stock, bond, mutual fund or anything else is subpar. Sorry, Spiff, that’s just a fact. Please stop touting your “analysts.” In the big picture, they kind of suck.



Actually, I used to think that as well. However, one of the things I came to realize is that it’s not the quality of the analysts. It’s their over-arching investment philosophy. If you are a true believer in buy-and hold, which MANY people are, then Jones actually does a pretty good job. I won’t bore everyone with details, but would argue more that the investment philosophy is lacking sometimes, versus the analysis. And there is not a lot of tangible evidence that the analysts “suck”. Their numbers are on par with the rest of the industry. I would also say that FA’s NEED to think for themselves when it comes to choosing investments. Use the resources of the firm, but use 3rd party resources as well. And your clients needs should play a big part in your investment decisions, not just whether the Jones model beat the S&P last year or not.[/quote]



Wrong about AAPL, wrong about HD, wrong about Lehman not going out of business three days before they did. Wrong about BAC, wrong about C - I could go on, but their analysts do suck.



They are not on par with “the rest of the industry” regardless of their investment philosophy.



I agree that clients’ needs and risk tolerance should play the major part. The problem is, that’s not Jones. I lost track of how many times I had to explain a trade to HQ. Every time the response was, “why don’t you let the analysts make those calls. We have the great Alan Skrainka for a reason. (ok, i put the great part in there).”



My calls have been right more often than Jones.
May 6, 2009 9:35 pm

[quote=jkl1v1n6]

Over! Did you say over? Was it over when the Germans bombed Pearl Harbor? Hell no! And it ain’t over now, when the going gets tough…the tough gets going. What the f*** happened to the Spiff I used to know? Where’s the spirit? Where’s the guts? This could be the greatest night of your life, but you’re going to let it be your worst. We’re afraid to go with you, we might get in trouble. Well just kiss my a** from now on. Not me, I’m not gonna take this.





Come on Spiff this has been your most valiant battle yet. Don’t let them snatch it away from you. [/quote]



A wise man picks and chooses his battles. I believe the correct term (correct me if I’m wrong 13A) is tactical withdrawal. Spiff is not giving up, he’s simply choosing to fight on ground of his choosing. LOL



B24 - I hope that you don’t have the Jones anti-Indy squad crawling through your office tonight while you are gone. Hope you get out before they get you.
May 6, 2009 10:14 pm

Too late Moraen, he’s gone.  RIP B24 …you will be missed.  I’m sure someone in home office has already got dibs on his office.

May 6, 2009 10:18 pm
bspears:

Too late Moraen, he’s gone.  RIP B24 …you will be missed.  I’m sure someone in home office has already got dibs on his office.

  Probably a PASS Program Kid