Bank Secrets Revealed Part II

or Register to post new content in the forum

12 RepliesJump to last post

 

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Feb 23, 2007 12:03 am

Bank broker to elderly client,


    "This Variable annuity doesn't cost you anything, will guarantee you at least 6% rate of return, needs to be upgraded every 7 years (which is the only time I will keep in touch with you), and grows tax free even though you don't pay any taxes anyway."

Feb 23, 2007 12:59 am

This is a misleading characterization.  With an L-Share annuity, I can "upgrade" the client every 3 years, you don't have to wait 7.

Feb 24, 2007 9:35 am

You forgot the tax free death benefit and Ben Bernanke's investments are 70% annuities!

Feb 24, 2007 9:43 am

Rank, give it a rest.

Feb 24, 2007 3:26 pm

Rank,



The compliance departments within banks are some of the toughest in the business. It is highly unlikely this scenario will ever play out, now there are sleazy independents out there doing this everyday if your going to take aim try them.



I know there are alot of elderly people that go into fixed annuitties in the banks, but at the right time that is not neccasarily a bad thing.

Feb 25, 2007 8:32 pm

Bankrep1,


    You have got to be joking me.  "compliance departments within banks are some of the toughest in the business."  And pigs fly.  There might be a few good bank brokers out there, but as a whole all I see is garbage investments, crap service, and high expense products.  Justify it all you want, but the higher the cost to the client, the worse the investment usually is.

Feb 25, 2007 9:48 pm

Rankstocks,


You have no life.

Feb 26, 2007 12:25 am

I have recent experience with both EDJ and a bank.  At both places, I have had transactions get questioned that shouldn't have.  I have also had things go through both places that on paper looked inappropriate (not that WERE inappropriate, but without talking to the client the forms don't always tell the whole story) but noone ever questioned me.


Everyone thinks their compliance is a pain in the a**.  Of course they are, that's their job.  Jones had some taboos that were more difficult (like paying a surrender fee on an annuity), but overall I find myself having to justify transactions more now than I did at the most ethical firm in the business.


Feb 26, 2007 12:29 am
rankstocks:

Bankrep1,


    You have got to be joking me.  "compliance departments within banks are some of the toughest in the business."  And pigs fly.  There might be a few good bank brokers out there, but as a whole all I see is garbage investments, crap service, and high expense products.  Justify it all you want, but the higher the cost to the client, the worse the investment usually is.



This is the equivalent of the posters who say that all they see from EDJ is 30 yr bonds and funds that seem chosen to avoid breakpoints.  Locally, I am sure different firms have incompetent brokers.  There is an LPL guy who does some business in this town that is horrible.  Does that mean that all of you independents are crooks?  Of course not.


Feb 26, 2007 12:59 am
EDJ4now:

I have recent experience with both EDJ and a bank.  At both places, I have had transactions get questioned that shouldn't have.  I have also had things go through both places that on paper looked inappropriate (not that WERE inappropriate, but without talking to the client the forms don't always tell the whole story) but noone ever questioned me.


Everyone thinks their compliance is a pain in the a**.  Of course they are, that's their job.  Jones had some taboos that were more difficult (like paying a surrender fee on an annuity), but overall I find myself having to justify transactions more now than I did at the most ethical firm in the business.





Tell us about your experience switching over to the bank.  How is it over there? 

Feb 26, 2007 10:06 pm

Personally , the bonused annuities that I run across are usually the worst product as far as cost that I run across other than EIA's. The difference is the bonus VA's are supposedly sold by people that should know better.....

Feb 27, 2007 1:56 am

gad -


here is a post I did a couple of months ago, I just cut and pasted, but it mostly describes my experience.  My experience is not universal, but trust me, if you can make it at EDJ, you can make it at a bank, and probably make more $$ while working less. 


(Also for Noggin, just because I can now sell bonus annuities and EIA's doesn't mean I do, I still think they are crap.)


"I was in a similar situation with EDJ, and went to a regional bank recently.  Through combination of salary, bonus and commission, reps in my program who have been there at least a year are making $65k at the low end, half are over $100k, and none are working nearly as hard as you are.  Also, between office expenses and health insurance, there is another $1-2k in my pocket every month, my net is really net now.


If you get in the right situation, it's a pretty easy life compared to what you are used to.  I don't do much prospecting, because I spend most of my time serving clients and prospects that are dropped in my lap.  Also, because I can now do wrap accounts and L Share annuities, my recurring income is already higher that it was at Jones (very few clients followed me, because I did a geographical relocation).  I anticipate my recurring income to grow significantly in the next few years, the starting at zero every month is a difficult thing for me so I am focusing on building recurring income, which is MUCH easier to do pretty much anywhere other than EDJ.


There is room to grow a big business if that is what you are interested in.  And if you are content making less than $100k, it's a way to stay in the business with a lot less stress.  Every month I know my salary will pay the mortgage, whether I have a good sales month or not.  I also know that 1-2 good clients are going to fall into my lap from bank referrals.


Every program is different, but at least in mine if you work half as hard as you did at Jones (which is about what I am doing), you will rise to the top, I'm in the middle of the pack and have been here less than a year, most of these guys have been around at least 5 years. 


My bank is in the midwest and is looking for people in a couple of areas, I don't get anything other than an atta boy for making a referral, but you can pm me for more info if you are interested."