A time for...encouragement...and bragging

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Jul 12, 2005 7:27 pm

Hey fellas,


I used to come on here all the time.  It got to be a bit monotonous, so now, after about 8 months, I'm back again...with a new and more exciting name :).


I am younger in the business...been in about 2 years now.  I have almost $19,000,000 under mgmt.  I work at Jones.  I won't forever...when I can leave, I will.  I am already doing more C-shares and looking at the crappy EJ managed acct program to start annuitizing the business.


I am thinking about the business and sometimes get discouraged at the "marathon" aspect of it.  I would like to hear some real-life success stories...your stories.  Like...mine (not a success yet) would read:


2 years in the business...monthly residual gross of $1,500.  Last year did $165,000 gross.  Net last year was $65,000.  AUM=$19mil


I am most interested to hear about the residual business you have built and, with as much detail as possible, your ways of going about increasing that portion of your business.  Also, for those truly independent now, what percentage payout do you get (before expenses and overhead is fine)? 


I completely understand if you want to fudge your numbers a bit to maintain anonmymity, but if you have to skew them wildly, please don't bother post them as I am looking for realistic numbers in the business.


Thanks and have fun bragging -- and at the same time encouraging us younger brokers.


Jim

Jul 12, 2005 9:48 pm

1.2MM

190MM

Jul 12, 2005 10:08 pm

Hey Sailor,


Nice numbers, but I think we need at least one more number...your W-2 (or net if you're indy)

Jul 12, 2005 10:49 pm
JimMorrison:

I am most interested to hear about the residual business you have built and, with as much detail as possible, your ways of going about increasing that portion of your business.  Also, for those truly independent now, what percentage payout do you get (before expenses and overhead is fine)? 



it would be easy now just to post your numbers--and that is fine.  but, please, if you can spare 3-4 minutes, please post details pertaining to the above.  try to take yourself back to your 2nd year in the business when you still needed guidance.  thanks again!

Jul 13, 2005 12:37 am

mr morrison


You need more experience.  I would say you need at least 5years and be producing 250k per year before you make the change.  Most b/d's want at least 200k in production before they will take you on.  Plus you will get assitance based on your prior year commssion levels.  Hang in there be patient and then leave



Jul 13, 2005 12:39 am

i was afraid this might happen...please don't let this turn into a thread about when i should or should not go independent...i know i am not ready now...that is not the issue. 


some say "start the business with the end in mind"...this thread is about seeing what that end can look like for me (and does currently look like for some other folks).


thanks for the advice though.

Jul 13, 2005 10:52 pm

I have been at Jones for 7 years.  I have to disagree with you
regarding the Managed Account Program.  It's not crappy and I have
$10,000,000 in the MAP program and getting about $500,000 a
month.  My assets are $50,000,000 and I did $500,000 gross last
year.  I also make $6,000 net every month between service fees and
Managed Account Program Fees.  I would reccommend you take Jones
up on the Continuing Education offer and get your CFP.  They paid
for all my classes and I am taking the test Friday.  I think if
you have the credentials and build the business then you will have the
confidence to go out on your own.


Jul 13, 2005 11:01 pm

Jim, why the C shares and the "crappy" MAP program to annuitize your business?? Doing what is right for the client is the best way to annuitize your business. YoBrad, great foundation. After 13+ years I walk into about 10k net a month the first day. I have 3xs your assets, so you are doing well..

Jul 14, 2005 10:02 am

Hi,


C shares are fine and I use them all the time.  I use multiple fund families in putting together portfolio's and A shares don't make sense much of the time due to front end loads.  I am more than happy to take a pay cut for the first 4-6 years by using a C share if I think the client will benefit in the long run by having more flexibility and control and a more diversifed portfolio.  I also like smoothing out my income.


The "MAP" program is the only thing you have so,..if you like the concept--go with it.  Fee based is becoming a larger part of my business all the time.  When I left Jones I had 80 something million and had 3 million in C shares and no fee based.  18 months later I have 100 million AUM.  14 million in C shares, 4 million in fee based and another 3 million in annuities that pay me a 1% trail.   I did 760k last year with a net/net of 66% (takehome pay after all overhead).  I'm off that this year about 7% due to fee based and C shares placements.


My total fee based and Trail income (with A shares incl) should be darn close to 300k next year.  That's a 90% payout on that stuff too which is 270k for turning the key.....so that's about $22,500 net per month.  Wow--that's not half bad.  That covers all my office overhead and my home bills too!   


One of the best things about indy is you can take your business in any direction you want.  Your payout will be the same on all share classes A, B, or C which is a refereshing change from Jones.  Your not being manipulated into doing a certain share class or being told what's the best for YOUR client. 


Hopefully that was some of the detail you were looking for and if I were to change one thing--it would have been to annuitize my business sooner.  I like it and so do the clients BTW.

Jul 15, 2005 7:20 am
Sailor25:

1.2MM

190MM





You posted somewhere out here you were "interviewing" with Morgan, UBS,
and AG Edwards, and you were waiting for the results from some of
them.  Those numbers do not warrant an "interview";  you
would simply choose where is best for your busienss.  You even
said Morgan had administered a "test".  Does a million dollar
producer with nearly $200 mil need to do one of those tests at
Morgan?  If so, I would tell them where to put the test.

Jul 15, 2005 10:06 am

Rightway,


Nice call out on a big fat liar.  A million dollar producer would not ever have to take a "test".  As you said, it is simply a matter of deciding who has the best package of resources, compensation, etc. 


Sailor25 is knee deep in his own BS.

Jul 15, 2005 10:50 am
Guest1:

Jim, why the C shares and the "crappy" MAP program to annuitize your business?? Doing what is right for the client is the best way to annuitize your business. YoBrad, great foundation. After 13+ years I walk into about 10k net a month the first day. I have 3xs your assets, so you are doing well..


Guest1


Try honesty.......it works even better............................after 13+ yrs at Edward Jones and you allow your own firm not to do so.


Is is not right for your customer to know the TRUTH? 


By the way what is your opinion of the stupid remarks made on here by your favorite Drone Bill F-upped.........he is a very sick person, and one of Edward Jones self proclaimed stars......and yes you must be so proud of his statements? 

Jul 15, 2005 5:16 pm

any other non-bank producers care to weigh-in?  no offense to the bank brokers, but it comes to you and you don't have to go get it...


thanks,


JimMorrison

Jul 16, 2005 8:35 am

bump

Jul 16, 2005 7:52 pm

So sorry, nit-pickers. Did I use the wrong word? I suppose I should have said "meetings" instead of "interviews."



Perhaps I should not have bothered to participate in this discussion.

Jul 17, 2005 12:15 am
Sailor25:

So sorry, nit-pickers. Did I use the wrong word? I suppose I should have said "meetings" instead of "interviews."

Perhaps I should not have bothered to participate in this discussion.



don't feel too bad, you actually hardly participated.

Jul 17, 2005 9:28 am

I think creating portfolios of C Share mutual funds will come under
extreme scrutiny in that they do, in fact cost more.  Not that the
flexibility is not a positive factor though, its just these accoutns
will be "means tested" (much like wrap accounts are going through
now).  What I mean is that you will only be paid the 1% trail on
the assets on the for a certain time period.  The SEC will not
stand for a 55 Year old client holding his portfolio in a static C
share mix or fund with no management beyond the fund level, and us
getting paid 1 % for ever. Just my opinion.

Jul 17, 2005 11:18 am

just transitioned from being a RR to being a licensed branch manager
fora large national bank.  I get the manager's salary, but also
generate commissions.  It's a six figure a year gig, all told, and
I get four weeks paid vacation a year.  If a HNW client comes
into the bank, I can sell them, but I no longer spend every hour of
every day trying to find somebody with $100,000 to invest.  Me
happy now  

Jul 17, 2005 11:24 am
george:

just transitioned from being a RR to being a licensed branch manager fora large national bank.  I get the manager's salary, but also generate commissions.  It's a six figure a year gig, all told, and I get four weeks paid vacation a year.  If a HNW client comes into the bank, I can sell them, but I no longer spend every hour of every day trying to find somebody with $100,000 to invest.  Me happy now  


How nice for you. You've worked your way up to being an "employee" who is subject to being fired for any little reason.

Jul 17, 2005 2:08 pm

yeah, please no need for arguments...we all know bank brokers are employees, just like office assts and can be fired anytime...they just get paid a little more.  now, anyone that is INDEPENDENT and had to prospect to find their book--->  see first post.


thanks
Jimmy