Half time at Morgan Stanley
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[quote=frumhere]no...all ms accounts are classified as such so why shold reps be any different?[/quote]
Huh? How are those two things similar?<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
Households are classified as such to give special bennies to folks with more assets with us. I suppose they could do the same to reps, though there’s already some of that already going on with the special bennies some club levels get with admin support.
What makes you think they’ll go that route further? You sound pretty disillusioned. Weren’t you considering management? Does that have anything to do with your current mood?
[quote=fritz]I sure you will show up now that you presence has been asked for Butler...so let me ask you what you think about the brokerage settlements for registrations, SA's, errors, O/T etc...How do you think this will play out over the next year or two?[/quote]
I'm not sure what you mean. What do you mean by "brokerage settlements" and why are you so certain the sky's falling?
I was considering mgt, but decided that the best insurance is a book not a monthly check, although consistant in payment.
[quote=frumhere]I was considering mgt, but decided that the best insurance is a book not a monthly check, although consistant in payment.[/quote]
I couldn't agree more. A book is a lifeboat, a mgt position is anything but, and lately it's been a bad place to be.
i am just nervous b/c i am los 5 and trail 250 and i feel i could get slammed if they make changes
[quote=frumhere]i am just nervous b/c i am los 5 and trail 250 and i feel i could get slammed if they make changes[/quote]
I don't know that there's anything to be gained by worrying about it. It will happen or not happen no matter how you worry or don't worry about it. I doubt there will be more cuts, especially at your LOS. OTOH, you should always have a lifeboat handy. T
he best advice I think you can get is to just grow your biz, have an escape handy just in case and don't be distracted by what's happening in mgt corner offices.
That’s why I have been talking to ML and SSB. They seem interested…it would make sense that MS would be interested in keeping me, but you never know.
My los is 3.5 and T12 $200K. A little worried, but not in panic mode. I think before they change the grid they will encourage us to team up. Either that, or we should think about doing it now. I’ve talked to SB and ML as well, but we can’t compare MS to them because our margins are so much lower. Gorman is going to do whatever it takes to increase the margin. I don’t think getting rid of promising young producers is smart, but I also didn’t think hiring 2400 trainees a year was good business either. I hope we’re okay, but I agree with you guys. It can’t hurt to have a plan B.
You guys should both be fine. If they cut at those production levels for your respective LOS, the firm would be up $#it creek.
[quote=fired?] I've talked to SB and ML as well, but we can't compare MS to them because our margins are so much lower. [/quote]
You mean ave production per broker? Gorman has a slide that says post last year's cut we've move to a tie for 2nd on that category with (I believe) SB. I agree he won't be statisfied with 2nd, but we no longer trail everyone by miles.
Team Up? Most people I know looking to go into teams do it for convenience (vacation, coverage, etc )and not to make 1+1=5.
Gorman mentioned in a few of the townhall’s that he believes teams are the future of the business. He seems to feel that there is too much for one person to master on their own. Thinking about teaming up prior to being forced to may help one find the right partner.
Butler, I didn’t mean avg. production. I was referring to the profit before tax margin which is 8% for MS versus 19-21% for SB and ML. Gorman seemed intent on narrowing this gap at the UBS Financial services conference.
The fact with Gorman is, he wants advisors to grow their revenues to a million plus. I guess we can’t sit back until we get there.
The wirehouses want teams to make the assets “stickier”. It is harder to move a team, and more difficult to for one broker to leave and take his/her accounts when someone else has a relationship with them. More vacations and free time is how they sell it to the brokers.
[quote=fired?]Yeah downtown. Teams never leave...[/quote]
They do, but they don't seem to be as mobile as individuals. I think there IS something to the "sticker" logic, as well as the need to increase assets.
[quote=fired?]
The fact with Gorman is, he wants advisors to grow their revenues to a million plus. I guess we can't sit back until we get there. [/quote]
Well, don't we all want to be over $1MM?
Don't leave out the "ultimately" that he said before that figure and the average of $700k he had on his slide (from today’s $520K average) as an "aspiration" figure.
Teams are stickier, but they also tend to have more wealthy clients, and better relationships with them. Therefore the move is actually easier with a team. However, I do think it is more difficult to motivate a team to move in comparison to an individual.
I agree with your assessment of $700K. It probably takes an advisor between 10-15 years to get to the $500-700 level. As long as lower LOS producers are growing their revenues at a reasonable pace we should be okay.
Butler what do you think?