They could go indie or Jones.  They might also be able to get on at Stifel or another regional.  None of the other larger firms would want them either. 

I think these type of cuts are the reason why the industry is not able to inject youth into the industry.

That means they WANT you to leave.

maybeeee is correct.  It is a firms way of legally getting rid of you and not having to pay unemployment.  In a market were our firms preach responsibility, ethics and best for clients, it's amazing how dirty, and ruthless firms can be to employees.  But than they get upset and sue you when good producers leave.  No wonder why their is no loyalty. 

Yep, they don't want to fire people.  $300,000 in gross revenue is respectable.  They will probably set up a call center.  They look at what reps are making and it makes them jealous.

B/D's are dumb as hell. With twice the payout and less compliance headaches the RIA path will just keep growing. Getting almost twice the payout, it is a no brainer. 

[quote=I am legend]

They could go indie or Jones.  They might also be able to get on at Stifel or another regional.  None of the other larger firms would want them either. 

[/quote]

They could go Jones, but what is that like a 40% payout? Indie sounds likely. Or, they could go to an Insurance firm and get 65%+

[quote=palmpre]I think these type of cuts are the reason why the industry is not able to inject youth into the industry.[/quote]

Palm,

I couldn't agree more with you.  I just recently left ML for an independent.  Here is a quick picture, I'm 30 years old, have my CFP and CRPC, a reasonable book of assets at ~ 20 mm; graduated successfully from their training program during the 08/09 markets and basically realized that not only do the wirehouse firms not want people under a certain level, they really give 'newer' advisors ZERO ability to build their career.  The demographics of our industry is such that it is dominated by guys/gals who are over 50 years old (who presumably would like to retire one day), yet they make no effort to retain the younger FA who is trying to build his/her book the right way.  The only younger FAs that seem to survive are those who work for a family member or are lucky enough to join a team that actually looks out for their interests rather than their own.

Personally, I took a look at my situation and said - you know what, I have to put up with the BS from management and having to constantly look over my shoulder, and for what?!  So they can pay me 38 cents on every dollar I bring in!?  Now that I'm Indy, I'm making 70 on the grid with an existing Indy office (20 bps goes to the office for our assistant, overhead, expenses, etc.).  So, I basically doubled my payout and wake up every morning with one focus:

Building my book of business over the next 30-40 years without the worry of someone saying to me, hey you need to find another job.  I did the math and said, in order to get back to my old salary in the training program, I would have to do 200k in production.  If I do 200k in production, I would make TWICE that amount of money.

It's amazing to me why anyone stays at these larger firms anymore.  A "million dollar producer" at a wirehouse is making about 400k; as an independent, they're making 900k gross and if you figure a reasonable percentage goes back for expenses... let's say they make 700-750.  It's staggeringly different, even if one has to worry about paying the electric bills every month. 

Going indie has it's advantages...especially expensing everything under the sun. B/D's have a terrible time recruiting people because of their moronic reputation of making the industry so hard. The management idiots need to run a hot dog stand to understand what it takes to run a business. I told my wife 2 years ago that Obama couldn't even run a hot dog stand, yet the idiots elected him to the most powerful corporation...go figure. So, expect all the other B/D idiots to do worse.

I think the biggest joke is that all of these firms expect you to learn their products well. I have something to tell these Einsteins.....if you don't prospect no one can use the products. I have yet to see a majority of the program geared around cold calling. 

Build the field after everyone comes. Not before.