Switching Firms

 Why not go INDY? Life is nice here!

thanks but no thanks

Rule of thumb seems to be 100% - 150% of trailing 12.

[quote=cracker]Rule of thumb seems to be 100% - 150% of trailing 12.[/quote]

I could be wrong, but while wirehouse deals are certainly up in that range I doubt you'd get that high on T12 of only $225k.

what do you think is more accurate with my trail?

Why are you considering leaving MSDW?  Just curious, because I will be starting with them in next week. 

beach…are you a rookie?

Not even.  I just had my 2nd interview the other day and was told I would find out within the week if I will be starting. <?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

all the news out there

I wouldn’t suggest going anywhere with only $225k in production. 
I think those with lower production and less-established client
relationships (in years) are more likely to lose clients in a
move.  Big producers will take almost all.  Smaller producers
usually don’t do as well.



I’d wait to hit 350k - $400k, then move. 



Just my opinion. 

I hear what you are saying, but I have a few dynamics at work...

1) places are hot to steal MSDW brokers right now.

2) only 3 years in production

3) clients are spoken to at least weekly

4) very top heavy with clients (a few realtionships are my book) and therefore i will know before i switch who will come.  if not enough, i will stay

General question…if anyone was in a similar situation like mine, who else would you look at in addition to SSB?

The usuals, alsoo compare ML and UBS, see where you fit and who has the best deal!

[quote=frumhere]

I hear what you are saying, but I have a few dynamics at work…

1) places are hot to steal MSDW brokers right now.

2) only 3 years in production

3) clients are spoken to at least weekly

4) very top heavy with clients (a few realtionships are my book) and therefore i will know before i switch who will come.  if not enough, i will stay

not each of my clients.  i am top heavy.  the relationship with 15mm and the relationship with 6mm i speak to all the time. 

How many years are you in the business?

My experience has shown that anything under $250 will not garner much interest.

I started 12/01.

I was in your boat last year. Moved to UBS. Got 75% of training 12

upfront 25% if I hit certain golas the next two years. Transition went

smooth.

Is the 15mm relationship your in-laws?

I had a trailing 12 of about 230K six months ago and shopped around at
UBS, MS and SB and here is what I was offered by these three firms…



The worst: SB - 100% of trailing 12. 80% in cash and 20% in Citigroup
Stock but only if 60% of assets transferred over after 14 months. Loan
was non-forgivable over 7 years.



The middle: UBS - 125% of trailing 12 all in cash. Loan was non-forgivable over 5 years.



The best: MS - Rising Star Package - 100% of trailing 12 all in cash.
After year 1 (actually 14 months) if 80% of assets transferred over,
another 20% of trailing 12.

After year 2 if trailing 12 is equal to 125% of trailing 12 at old firm you get another 20%.

After year 3 if trailing 12 is equal to 150% of trailing 12 at old firm you get another 25%.

Nothing in year 4.

After year 5 if trailing 12 is equal to 200% of trailing 12 at old firm you get another 25%.



Total possible - 210%



Loans are non-forgivable over 5 years…each with their own schedule. Also 5K per month for the first 3 months.



And if you miss one bonus, you can still get the others…example, miss
the one in year 2, you can still get the ones in year 3 & 5.



Hope this helps.

[quote=dinkado1]

Loans are non-forgivable over 5 years…each with their own schedule.

[/quote]



Non-forgivable loans?  As in you have to repay the entire amount out of your net commissions?



I wouldn’t include any non-forgivable portion when evaluating a
deal.  That would be like taking a loan from a bank and counting
that as income.



Just wondering.

Forgivable…sorry.

I would look at which firm offers the most overall.  Your
production level would indicate you are in serious growth mode- go with
a firm that will best support your growth efforts, has the best service
and product platform for your business model.  I know it may not
seem like it right now, but do not hold the transition package in such
high regard- it is only meant to help you out, it is not a bonus. 




With that said- the SB offers seems terrible.