Why are you still with MSSB or MER?

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Sep 10, 2009 1:07 pm

If you're doing between $400k and $500k a year, why haven't you left yet? They decided not to pay you to stay, they continue to decrease your payout, they find ways to not pay you on business; i.e. small households or trades and they continue to increase the fees they charge your clients. All this and you get the luxury of defending their name to your clients.



I'm just curious.   

Sep 10, 2009 2:13 pm

Why are you at a wirehouse at all may be the best question? 

This article from "OnWallStreet.com" is pretty on target

Wirehouses Losing Assets and Advisors
$800 billion of client assets in play
By Lee Conrad
September 10, 2009



Wirehouses are projected to lose $188 billion in client assets this year due
to advisor migration, according to a new report from Cerulli Associates. And
those losses are expected to continue over the longer term as well.

The
channel’s market share of assets under management will be at 40.7% by 2012, down
from 47% as of year-end 2008, according to the report. Wirehouses will still
dominate the market, but the downward trend will continue as more advisors seek
out the independent channel, according to the Cerulli’s report entitled,
“Advisor Migration: The Changing Landscape of Retail Distribution.”

Scott
Smith, the analyst who wrote the report, said the main driver behind these moves
is brand erosion of the wirehouses. “There’s a lot of investor dissent [at the
wirehouses]. Some advisors told me that their clients said ‘What took so long?’
when they moved.”

At the same time, the independent channel, which
includes independent broker-dealers, registered investment advisor firms and
dually-registered advisors, are gaining market share. The independents will
nearly match wirehouses’ market footprint by 2012, with a 39.3% market share of
assets under management, the report said.

This year’s decline is just
part of the industry’s overall advisor migration that will put $800 billion of
client assets in play as advisors move from job to job.

For wirehouses,
the diminution of headcount will be significant. By 2012 they will account for
13.7% of the job market, down from 20% as of the end of 2008, the report
predicted. But that may not be all bad news. “While this represents a
significant loss, we expect the wirehouse advisor of the future will be
relatively more productive, resulting in a highly effective and profitable sales
force," says Smith.

For instance, the report cited the joint venture of
Morgan Stanley Smith Barney as being in an “enviable position of being able to
select top talent from two skilled organizations.” The firm will be able to
capitalize on a position as a “pure play” for wealth management-focused
advisors, the report said.

However, the picture isn’t quite as rosy for a
couple of its competitors. The report said Bank of America’s controversial
purchase of Merrill Lynch could threaten the historic dominance of Merrill’s
sales force. The report also stated that there is a concern about UBS among both
advisors and product manufacturers about how the corporate ownership of that
firm will play out over the next several years.
 
Overall, Smith viewed
the report’s findings as a “slow erosion” of the power of the wirehouses.

Sep 10, 2009 3:17 pm
Stifel Nation:

If you're doing between $400k and $500k a year,
I'm just curious.   

 
 
 
 
You make a great point.  
Stifel Nation is a great place for peanut producers.
 
Sep 10, 2009 9:55 pm

I love articles talking about how indy is going to over take wirehouses... Where do you think all the indys came from? Most of them got a start at a wire. Most of the big producers(no $600K doesn't count) are still there..

Sep 10, 2009 10:58 pm

If you're doing 400-500k after 10+ years the question isn't why haven't you left MSSB or MER it's why haven't you left the business?  There has to be something you're good at.

Sep 10, 2009 11:46 pm

Of course the majority came from wirehouses. In the old days the wirehouses provided immediate name recognition and some training. These days who wants the name recognition of the old wirehouses? The advisor spends half the day explaining to their clients why they are still associated with their firm.

Don't get me wrong, the current wirehouses still have an attraction for the advisors who are scared or to lazy to make the move. How can you call yourself a "financial advisor" when you have decided to allow your firm to keep the lion's share of your gross? The world can only handle so many leaders. It's OK that you would prefer to be a follower since the world needs its share of people (sheep) who just follow the herd.



   

Sep 11, 2009 12:19 pm
Apollo 13:

The world can only handle so many leaders. It's OK that you would prefer to be a follower since the world needs its share of people (sheep) who just follow the herd.



   







The 400-500k Stifel Nation leaders?    funny

Sep 11, 2009 12:28 pm

Again, SN makes some great points and nothing really has changed since i started in 1981.   Regionals and Indy provide a great place for smaller producers to make a living.   

Its a great little niche.    Its not a bad thing and guys can feel good about themselves doing these low numbers.

Sep 11, 2009 12:39 pm

Indie firms, like the one I found, are willing to give newbies, and smaller producers a place to learn and grow.  The wire houses don't want us simply because we don't make "them" enough money.

At the end of the day, I don't want a firm that's going to penalize me for not being a huge producer.  I just want to take care of my clients.  Not worry about when the next time I'm going to lose 10 pounds of ass for not hitting sales goals and quotas.
Sep 11, 2009 2:08 pm

My Stifel office has 2 $1MM+ producers out of 6. Keep watching us grow. Yes, we are a GREAT place for $500K, but we're increasing our $1MM+ advisor force monthly.



Every firm has it's knocks, but over the last two years our stock price has gone up 55%, we won the Starmine award for earnings accuracy and stock selection (no other firm has one both in one year), and we were named in Fortune 100's list of fastest growing companies.



My last two years at MS watched my stock go from $70 to $29, after going down to $6, fines in the billions for auction rate securities, TARP money, staff reductions, decreasing payouts constant changes in Senior Management.



All facts, not my opinion.

Sep 11, 2009 2:13 pm

Stifel Nation... maybe you should change the title of your thread to: "Why is everyone not at Stifel".... dude.. we get it.. Stifel rocks the free world and we're all blind for not seeing ourselves there right now 

Sep 11, 2009 2:18 pm

I'm down with that. New topic. "Why aren't you at Stifel?

Sep 11, 2009 2:20 pm
Stifel Nation:

My Stifel office has 2 $1MM+ producers out of 6. Keep watching us grow. Yes, we are a GREAT place for $500K, but we're increasing our $1MM+ advisor force monthly.



Every firm has it's knocks, but over the last two years our stock price has gone up 55%, we won the Starmine award for earnings accuracy and stock selection (no other firm has one both in one year), and we were named in Fortune 100's list of fastest growing companies.



My last two years at MS watched my stock go from $70 to $29, after going down to $6, fines in the billions for auction rate securities, TARP money, staff reductions, decreasing payouts constant changes in Senior Management.



All facts, not my opinion.





Do regionals, like Stifel, hire newbies?

Sep 11, 2009 2:42 pm
tqspygame:
Stifel Nation:

My Stifel office has 2 $1MM+ producers out of 6. Keep watching us grow. Yes, we are a GREAT place for $500K, but we're increasing our $1MM+ advisor force monthly.



Every firm has it's knocks, but over the last two years our stock price has gone up 55%, we won the Starmine award for earnings accuracy and stock selection (no other firm has one both in one year), and we were named in Fortune 100's list of fastest growing companies.



My last two years at MS watched my stock go from $70 to $29, after going down to $6, fines in the billions for auction rate securities, TARP money, staff reductions, decreasing payouts constant changes in Senior Management.



All facts, not my opinion.





Do regionals, like Stifel, hire newbies?

Sep 11, 2009 3:43 pm

That looks like a no..

Sep 11, 2009 4:11 pm
Stifel Nation:
tqspygame:
Stifel Nation:

My Stifel office has 2 $1MM+ producers out of 6. Keep watching us grow. Yes, we are a GREAT place for $500K, but we're increasing our $1MM+ advisor force monthly.



Every firm has it's knocks, but over the last two years our stock price has gone up 55%, we won the Starmine award for earnings accuracy and stock selection (no other firm has one both in one year), and we were named in Fortune 100's list of fastest growing companies.



My last two years at MS watched my stock go from $70 to $29, after going down to $6, fines in the billions for auction rate securities, TARP money, staff reductions, decreasing payouts constant changes in Senior Management.



All facts, not my opinion.





Do regionals, like Stifel, hire newbies?





Strange, it told me I have responded too many times and it wouldn't post my response. Most Regionals have a training program, but they do not hire very many trainees a year. Stifel hires about 50 - 75 trainees a year.

Sep 11, 2009 4:13 pm

So the only way they grow is by aquiring or underperforming wire guys(not a crack. honestly curious)

Sep 11, 2009 4:19 pm

SN



more importantly



why the f&^% is Joe B so GD bearish?



In the 90's   he thought nasdaq was going to 100,000

Sep 11, 2009 4:25 pm

Pretty much.. call any AMP manager.. they'll have 10 canned stories for you about the 'big' wirehouse broker they just moved over.  True.. but yes, they're growing because they're recruiting hard, not because they're a great firm, brand, value, have excellent FAs, etc. But, they have $7B in cash.. did I tell you that?  Sorry for the sarcasm, AMP is not bad.. just not for everyone IMHO

Sep 11, 2009 5:32 pm

To Squash's question. We're much more profitable on a $400,000 since we don't have layers and layers of management. So "underperforming" to a wirehouse is not the same to us.



To A B's question. I'm not sure why Joe B. is so negative, but he performed pretty well last year, so I'm sticking with him. It's been tough though since the market has had a strong rally.