November 08 Production Numbers

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Nov 19, 2008 6:56 pm

How are your production numbers for November?


Speaking for myself and my firm - they are HORRIBLE
Nov 19, 2008 7:14 pm

bad.thank god for fee based.

Nov 19, 2008 8:32 pm

Good. Thank God for Indexed Annuities. 

Nov 19, 2008 8:59 pm
Vin Diesel:

How are your production numbers for November?


Speaking for myself and my firm - they are HORRIBLE
 
AWFUL..Never seen so many ACAT's going according to Front Desk help..myself included unfortunately.  The managed money guys will probably not see the big hit until jan when new fees go out, but from what can gather the guys who were at 1 MM will do less than 400 next year, 50% drop from assets drop and another 10-20% from people who closed their accounts, and the 500K guys will struggle to do 200K next year, even if we stay around 8000 on the DOW, if we break than all the above numbers are way to high.  But its so bad you just have to ask yourself if you have any skills to switch careers, I have asked myself and not come up with a good answer yet.
Nov 19, 2008 9:11 pm

This may well be the cycle that tests the real validity of the fee-based advisory approach that has been aggressively "suggested" to all of us over the past decade or so. I have never been a believer nor practitioner of, but my T12 is taking it on the chin, none the less ( I never doubted that it was better for brokers (and especially their firms), I've just never thought it was better for clients). I am and have been targeting currently fee-based prospects with advertising asking whether those fees are really a good value or not and encouraging readers to look closely at fee costs now, more than ever. Let the pot-shots begin!

Nov 19, 2008 9:32 pm

Production remains stable, though I am re-amping my business after splitting with my partner. Finding a lot of accounts $250-450K range at wirehouses that are neglected.


YHWY, I came from a EDJ, home of the longterm investor, only problem is after 5-6 years they reup that sales charge by changing to another fund company.. My favorite is when they split between Franklin and American Funds, and tell them it was diversification, but the real reason was increased commission on less breakpoints...Anyways won't argue fee based vs commission, but I think if I can add stocks, alternative assets, uits, mutual funds, etfs, indexes and not have to charge the client for every single item, and beat a asset allocation of index funds by at least my fee, then it is better for my clients than them being on their own...
Nov 19, 2008 9:37 pm

at 400k for year, less than 15k in for November...ugleeeeee. Goal was 450-500 for the year, going to be tough. More importantly not a whole lot in the pipe either.

Nov 19, 2008 10:06 pm
badmove?:

at 400k for year, less than 15k in for November...ugleeeeee. Goal was 450-500 for the year, going to be tough. More importantly not a whole lot in the pipe either.

 
Least one honest person on the board.  I know its pretty important to stay positive, but my pipeline is so empty could see to russia on a clear day.  I barely have the energy to go in and can not imagine trying to get more clients now..Attitude going to have to change Jan or could be rough, already told the wife to quit spending money.  HOPE I am wrong but think this bear market going to a long painful event.  Seeing retail stock like Nordstrom, Macys, Saks, Ann Taylor all looking like BK is a real threat.  Dozens of restaurants look like BK also, could not look someone in the face now with a clear conscience and say" I am so excited about this economy and you should be too" 20% of S&P 500 stocks under 10.00 today, after crash 1987 it was only 30 names, this is serious stuff.
Nov 19, 2008 10:18 pm

Lots of cuts coming at all firms on many parts of a branch P&L. If a branch had 4 billion in assets at .75 roa they where doing 30 million. same roa on 2-3 billion means branch now doing under 20 million!!



not to mention the errors and legal line are killing branch offices.



Support staff cuts, marketing budgets, real estate, manager cuts, and low performing FA cuts will be coming very soon.

Nov 19, 2008 10:53 pm

last month was great and im looking to end the year strong.  i will admit my business has changed though.   mostly fixed income business buying intermediate muni's and short term corporates.  dont think i have done this much fixed income business in my life.  also did some fixed annuity business.  my revenue is up year over year.  these are the markets where the strong survive. 

Nov 19, 2008 11:46 pm

My business is up slightly, and new assets are starting to come in.

Nov 20, 2008 6:44 am
fritz:

... and the 500K guys will struggle to do 200K next year, even if we stay around 8000 on the DOW, if we break than all the above numbers are way to high.


We broke 8,000 on the Dow just hours before you wrote that, with a close of 7,997.  It may be ugly, and it may be a long time since we were below that level, but there's nothing magical about 8000. 

Nov 20, 2008 8:04 am
fritz:
badmove?:

at 400k for year, less than 15k in for November...ugleeeeee. Goal was 450-500 for the year, going to be tough. More importantly not a whole lot in the pipe either.

 
Least one honest person on the board.  I know its pretty important to stay positive, but my pipeline is so empty could see to russia on a clear day.  I barely have the energy to go in and can not imagine trying to get more clients now..Attitude going to have to change Jan or could be rough, already told the wife to quit spending money.  HOPE I am wrong but think this bear market going to a long painful event.  Seeing retail stock like Nordstrom, Macys, Saks, Ann Taylor all looking like BK is a real threat.  Dozens of restaurants look like BK also, could not look someone in the face now with a clear conscience and say" I am so excited about this economy and you should be too" 20% of S&P 500 stocks under 10.00 today, after crash 1987 it was only 30 names, this is serious stuff.



Why can't you change your attitude on November 20, 2008?

Nov 20, 2008 8:27 am

"Why can't you change your attitude on November 20, 2008? "

 
Early in my career, I learned an important lesson about attitude.  It's very, very difficult to have a positive attitude without a full pipeline.  The negativity feeds on itself.  Anyway, what I learned is that activity comes before attitude. 
 
If you wait to get a good attitude to do the things that are needed to fill your pipeline, you're screwed.  If you do the things that are needed to do to succeed despite your attitude, your attitude will immediately improve.
Nov 20, 2008 9:10 am

Disappointing results. Three years in, I need to bring in at least 300k investable per month to survive and it's not happening. 



But have had good conversations with prospects lately. Dropped the EDJ 'sun will come up tomorrow/if you diversify everything will be OK/we didn't see any of this coming but believe what we're saying now' spin and have been leveling with people. It's bad and it's going to be bad for a while. Here's what we can do.
Have not lost any clients and only two have liquidated. Having their confidence feels good.
 
Nov 20, 2008 3:05 pm

Interesting topic.

Thank God I am indy.
My numbers are down and I am thankful for fee based and C-shares.

I hired a marketing professional to go after the wire house accounts in my area. I will see how that goes going forward into the first quarter of 08. I do not need that many more fee-based accounts and my practice will be at full capacity for me.  

Nov 20, 2008 3:06 pm

Ice--










 
Since you're 100% fees, I assume you're charging fees on a wide variety of account sizes.
 
At Jones, there's a $100K minimum for our fee-based account. Can an indy charge fees on any sized account?
Nov 20, 2008 3:29 pm

bad bad production month, started to pick up this week finally but I need more new assets.

Nov 20, 2008 4:01 pm

Thanks for the information. It's very difficult for me to implement our fee-based option with the $100K minimum; I need the upfront pop t-o-d-a-y.

 
I was just wondering if an indy can charge fees on any account size.
Nov 20, 2008 4:27 pm

Dang it!