AND I Miss Summer Regionals

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May 26, 2006 12:32 pm

Footsoldier is right. This topic does deserve a thread.


Best laugh I ever had a Summer Regional was during introductions. Someone ALWAYS would give the old "My name is Joe, my office is in Whogivesacrap, Illinois and I've been an alcoholic since... no wait- wrong meeting...." yuk yuk.


Well, during introductions one year, who we thought was a new guy stood up and slowly gave his name, where he was from ... and then said "Is this an Amway meeting?" We laughed a little thinking he was pulling a joke... but when he left the room suddenly- it was apparent he had wandered into the wrong meeting room and thought he had fallen into some kind of Amway Ritual Ceremony. Turns out, he was with an Aflac group having meetings in the same hotel.

May 26, 2006 1:46 pm

Because I was a Top Producer in the region, I was almost "required" to attend the Summer Regionals. 


I told my Regional Leader that I didn't want to attend the upcoming regional.  My Regional Leader went on the biggest sales pitch/guilt trip about not attending the meeting. 


My compromise was, I would go to the final nights Awards Banquet.  When I got to the banquet everyone was asking me, "How's your grandma?"  I said with a surprised look, "fine, why do you ask?" 


 My regional leader had told everyone at the meeting that my grandmother was sick and that's why I wasn't there.  My RL had to lie to everyone because otherwise newer IR's would have thought that the Summer Regionals were mandatory. 

May 26, 2006 2:37 pm

 My RL had to lie to everyone because otherwise newer IR's would have thought that the Summer Regionals were mandatory.  [/quote]


Imagine an RL at Jones having to tell a lie.

May 26, 2006 3:13 pm

The best part was the "Family Summer Regional"  We got to pay to bring your family to this event.  My kids would be treated to hot dogs off the grill.  My spouse would be told how to support the future of the firm.  What a joke.  They would then have some group family event that they would choose and coordinate but I would pay for.  When I would pass on the event I was treated like an outcast.  I gave my kids the option of going to the summmer regional or a local amusement park.  Even they could see that the whole event was a rip off.   Has anything changed I have been gone for the past 2 years?

May 26, 2006 6:45 pm

I miss the wholesaler talks where brokers would ask brilliant questions of the wholesaler like "from what point do you measure the bottom of the market?" or "what's the beta of the S&P?"  Every year it was a new opportunity to gain respect for my colleagues.

May 26, 2006 11:34 pm

"what's the beta of the S&P?"


...man, that is priceless...

May 27, 2006 9:37 pm
exdrone:

I miss the wholesaler talks where brokers would ask brilliant questions of the wholesaler like "from what point do you measure the bottom of the market?" or "what's the beta of the S&P?"  Every year it was a new opportunity to gain respect for my colleagues.


It sounds like you really have gained a lot of respect for other brokers.

May 30, 2006 12:57 pm

I am attending my last summer regional ever in a few weeks... and I
will be taking home a bunch of garbage awards.  I remember winning
the EDJ Prospecting award a at my 2nd summer regional.  My wife is
doesn't have much tact.  She looked at it and said (loudly I might
add), "You won a SHOVEL?!"  Everyone at my table laughed. 



If it wasn't for the location, it would be a complete waste.






Feb 9, 2007 3:07 am

 SUMMER REGIONALS= All they mention is sales.  How much did this turd sell, over that turd.  Not one mention of performance, how many people did you help, nor hey fellas what are your top stock picks for the coming year.  Nothing like it.  At the end of the day, a couple of cocktails, and those same big-hitters are talking tall about their scare-tactic sales pitch on selling some insurance based bullsh*t.  I work at Jones, and I wonder if anyone there, besides me, actually sells individual stocks, bonds, and anything else that doesn't pay a trail.  I think Wraps is a good move, for me.  Everyone else is getting paid to sit on it, why not the Koolaid Brigade?

Feb 9, 2007 3:00 pm
EdJehovah:

I work at Jones, and I wonder if anyone there,
besides me, actually sells individual stocks, bonds, and anything else
that doesn't pay a trail.  I think Wraps is a good move, for
me.  Everyone else is getting paid to sit on it, why not the
Koolaid Brigade?





because money in motion and insurance sales are the key to riches for a
commision based firm. Whereas for clients and advisors sitting still
and collecting fee's is the best policy.



"Your average Wall Streeter, faced with nothing profitable to do, does
nothing for only a brief time. Then, suddenly and hysterically, he does
something which turns out to be extremely unprofitable. He is not a lazy man."



Fred Schwed - 1940

Feb 9, 2007 7:34 pm
EdJehovah:

 I work at Jones, and I wonder if anyone there, besides me, actually sells individual stocks, bonds, and anything else that doesn't pay a trail.  I think Wraps is a good move, for me.  Everyone else is getting paid to sit on it, why not the Koolaid Brigade?


Yes.  The avg book contains about 20% stocks, 20% bonds, a lot of MFDs, and some other misc investments.  Ask your buddies to see their product diversification mix.   


The "Koolaid Brigade" hasn't done a wrap account in the past because prior management didn't feel it was in the best interest of the clients.  Why charge the clients 1.25% a year when they can pay American Funds max of 5.75% to hold the funds for the rest of their lives.  Good for the broker, more expensive for the client in the long run. 


Times, and management, has changed and now they are starting to think some sort of fee based account makes sense for some clients.  Not all of them all the time like you might see other places. 


BTW, your comment about "brokers getting paid to sit on it" is the reason places like Morgan are getting fined by the governing bodies.  Too many wrap account sitting dormant, just collecting fees.  If that's your attitude I'd hate to be your client. 

Feb 16, 2007 2:53 pm

I like sitting down with Ed Jones clients and showing them what they're really paying and what they're getting:


3.5% A-share charge over 10yrs = ~.35%


Expense ratio avg. = ~.75%


Internal transaction fees(turnover) = ~.30-1.50%


Total annual cost = ~1.4-2.6%


What you get: Calls ONLY to sell you something. No ongoing management of account because the broker has got to constantly be looking for "new" money. Embedded capital gains from 1935 when ICA bought some Standard Oil (NQ). No performance reports.


My offer:


1.25% including transaction costs, performance reports, monthly update on account, your own cost basis (NQ), tax-harvesting (NQ), total transparency, no commissions, no surrender charges.


Even if I do "sit" on assets, they're still saving money.

Feb 16, 2007 4:22 pm
EDJ to RIA:

I like sitting down with Ed Jones clients and showing them what they're really paying and what they're getting:


3.5% A-share charge over 10yrs = ~.35%


Expense ratio avg. = ~.75%


Internal transaction fees(turnover) = ~.30-1.50%


Total annual cost = ~1.4-2.6%


What you get: Calls ONLY to sell you something. No ongoing management of account because the broker has got to constantly be looking for "new" money. Embedded capital gains from 1935 when ICA bought some Standard Oil (NQ). No performance reports.


My offer:


1.25% including transaction costs, performance reports, monthly update on account, your own cost basis (NQ), tax-harvesting (NQ), total transparency, no commissions, no surrender charges.


Even if I do "sit" on assets, they're still saving money.



You must have been a really poor EDJ IR if you're basing the avg EDJ client experience on what you did in your office.  Assuming that you're comments about only calling when they have something to sell is an introspective comment.  I call my clients on a regular basis to give them updates on their account whether I have something to sell them or not.  I review all of my client accounts frequently for balance and performance and make appropriate changes when necessary.  I don't think I am the exception to the rule at Jones.  It is true that we have to kill what we eat, but that doesn't stop us from having good working relationships with our clients that is not solely based on selling them a new 30 yr bond.  Your comments are incredibly off base.


I love how fee based advisors use the "I don't charge commissions" line but out of the other side of their mouth say "My fees are 1.25%."  Don't you think that's a bit hypocritical?  Whether I charge them the $$ up front when I buy something or you do it every year whether you do anything or not, the clients still pays.  Fees vs. commission is a semantics game.  You're using the public's distaste for commissions in your favor.  What happens when the WSJ publishes another article about another firm that gets dinged by the SEC for inappropriate use of fee based accounts?  I'm sure EVERY account in your office is appropriately suited for fee based biz though, so don't worry about it.  


What surrender charges are you talking about?  B shares?  Annuities?  Those are the only things I sell with surrender charges.  Oh yeah, I sell A share annuities.  They don't have surrender charges.    


I hope you're a better stock picker than the American, Franklin, or Goldman boys.  They all have letters behind their names that qualify them to be stock pickers. 


Seems like your kool aid is just a different flavor than mine.  

Feb 16, 2007 4:34 pm

Spiff,


It really is better to be silent and thought a fool than to speak up and remove all doubt.


Feb 16, 2007 5:34 pm
Spaceman Spiff:

It is true that we have to kill what
we eat, but that doesn't stop us from having good working relationships
with our clients that is not solely based on selling them a new 30 yr
bond.  Your comments are incredibly off base.





As a potential client, I like your "we have to kill what we eat" mentality.



What happens when the WSJ publishes another article about
another firm that gets dinged by the SEC for inappropriate use of fee
based accounts?

Impossible for RIA's but very likely for B/D's promoting fee-in-lieu accounts.


I hope you're a better stock picker than the American,
Franklin, or Goldman boys.  They all have letters behind their
names that qualify them to be stock pickers.


This is a complete softball right? You know the score on active vs passive money management.



Feb 19, 2007 10:31 am

As an RIA there can be no "reverse churning" of accounts. clients pay me for my advice. You're right about all my clients being appropriate for fee-managed accounts. The ones who aren't I charge $150/hr to and show them how to invest in no-loads/ETF's so they don't have to pay a fund/annuity salesman 5%. Then we do another 2 hours in six months to rebalance. It's a heck of a lot cheaper than investing in mutual funds, especially after you consider the tax-harvesting.


I guess you didn't understand my math above. I don't think it's hypocritical at all to tell someone that I don't charge commissions. See I have to EARN my fees or else they walk out the door. YOU get paid up front, so it doesn't matter if they leave next month, you've already "killed and eaten" them.


My 1.25% is also less than they're paying you each year, so it's a win-win (for me and the client, not you).

Feb 19, 2007 3:58 pm
AllREIT:
Spaceman Spiff:

It is true that we have to kill what we eat, but that doesn't stop us from having good working relationships with our clients that is not solely based on selling them a new 30 yr bond.  Your comments are incredibly off base.



As a potential client, I like your "we have to kill what we eat" mentality.   


I've never used those terms with a client of course.  But in a forum of brokers/RIA's/whatever's I felt comfortable.  Thanks for reminding me to watch what terms I use everywhere.

[quote]What happens when the WSJ publishes another article about another firm that gets dinged by the SEC for inappropriate use of fee based accounts? [/quote]


Impossible for RIA's but very likely for B/D's promoting fee-in-lieu accounts.   


From the average client's point of view, they don't care that you are an RIA vs B/D vs fee based Indy.  They'd read the article and those seeds of doubt would be placed.  It's human nature to think they're getting screwed or that they can get something better for their money somewhere else. 


[QUOTE]I hope you're a better stock picker than the American, Franklin, or Goldman boys.  They all have letters behind their names that qualify them to be stock pickers.[/quote]


This is a complete softball right? You know the score on active vs passive money management. 


Yeah, I do.  That's why I think it's important to educate clients about a buy and hold philosophy.  And to use a good money manager that knows what they are doing.  I agree that the avg Joe out there isn't going to beat the market in the long run trading stocks, but that doesn't mean there aren't pro's that haven't.  How much money would you have today if you had put $100K into AGTHX 20 years ago and let it ride?  $1.1 million.  How much would you have if you hired Mr. RIA to tell you you can't beat the market Mr. Investor, so put your money into the S&P 500.  My fee is only 1.25%.  $634k.  Paid Mr. RIA $83K.  But no conflict of interest.  Even if I take out the 1.25% fee every year, the S&P only grows to $810K.  Tell me you can't find other funds that beat the other indexes like that.  



I know we all have our our ways of running our businesses.  Some like the RIA model, some like the Indy some (like me) like working for a B/D.  The comments EDJ to RIA made about EDJ clients were, in my experience, way off base.  If you can convince your prospects that your way is better than some other guy's way, more power to you.  That's why at the end of the day it's still considered a sales job.