MWD FAs options

Why would they look at people let go for under-performance?

That’s what I was wondering.  I have talked to a number of FAs that were let go and they were telling me to get in touch with SSB and Merrill for them.  I wanted to make sure I was up to speed and wasn’t missing out on anything.

The MS FA’s better have a solid reason why they were expendable in the eyes of the new restructuring. My Director has gotten several calls from interested, recently departed FA’s and has only scheduled a meeting with one of them… Even thought there was a strict criteria for letting brokers go, they will have some explaining to do… If I were on of the departed, I would be walking into the local branches with a fresh resume, asking to personally meet the branch manager/director. Time’s ticking, and it may come off as more ambitous if they take the initiative to contact potential employers… But, I do understand that recruiters dont get paid if that happens, so its a crapshoot…

I think some firms are concerned about image if they start scooping up Morgan's dregs (with all due respect, I am sure there are some good people out), and Will this hurt their recruiting efforts for bigger brokers.

I wouldn’t call those MS terminations dregs.  Not at all.  In
fact, as of three months ago they were perfectly welcome producers.



I can’t imagine why any large wirehouse would be interested, to tell
the truth.  They operate the same way.  However, unless
things have changed in the past couple of years, the smaller regionals
like Piper and Stifel may be quite interested.  (Yes folks, you
can have a very productive, lucrative career at a regional–despite
what some folks want you to believe.  Plus you’ll get better
treatment.)



That must suck to be only a few thousand UNDER the cutoff and have your
entire career ruined and YOUR clients stolen away like that. 
Tossed out like yesterday’s garbage–should be a reminder to everyone
who works in this industry what it can be like.



"Sorry, Frank, even though you make money for the company, you don’t
make enough.  So we are going to fire you and reassign your
clients–the clients you busted YOUR ass to get."



This should also give someone considering working for Morgan Stanley or any other large wirehouse something to think about.

Well-put, Inq.  I would be nervous.  Mack could steer this ship in the right direction, but anything is possible at this point.

"I wouldn't call those MS terminations dregs.  Not at all.  In fact, as of three months ago they were perfectly welcome producers."<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

"Perfectly welcome producers"? Not really. I don’t want to insult those who lost their jobs, but let’s be serious. We're talking about people above LOS 8 doing less than $225k in annual production. That’s simply pathetic.  Most were already in the "penalty box" of a 25% pay out until they passed 200K in production. They were already gently being shown the door.

There's a world of difference between being a "perfectly welcome producer" and just hanging on by the skin of your teeth. The overwhelming attitude I've heard about the cut is "why did it take so long".

I am one of those "dregs" with 20 years with Dean Witter.  It was a great 20 years, loved my clients.  So what if I didn't churn my clients.

I can now retire at 45, thank you Phil P.!

The "pathetic" ones are those talking trash will still having to work for a firm.  I work for myself now.  I practiced what I preached.

I still miss those small accounts, they where fun to help.  Always great to see young investors trying to accumulate wealth.

Did they offer any of the ‘tenured’ reps they let go some sort of comp. package or just cut you loose?

There is a “sunset provision” for brokers over 55 that truely retire.  Something like 50% of commisions earned for one year after retirement.  The only package I got was a box to put my stuff in. 

[quote=rickmwd]

I am one of those "dregs" with 20 years with Dean Witter.  It was a great 20 years, loved my clients.  So what if I didn't churn my clients.

I can now retire at 45, thank you Phil P.!

The "pathetic" ones are those talking trash will still having to work for a firm.  I work for myself now.  I practiced what I preached.

I still miss those small accounts, they where fun to help.  Always great to see young investors trying to accumulate wealth.

[/quote]

I don't want to make this personal Rick, and you really do have my sympathies, but please don't tell us someone with over twenty years as a rep has to "churn" to produce over $225k. After twenty years a reasonable asset base with a reasonable production rate will put you well over $225k. If you’ve gone off to be independent, I wish you the very best.<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

It could be perceived as churning depending upon the amount of assets you have under management.  The key to this business is new money.  If no new money comes in, yes, then a lot of people churn to grow revenue.

[quote=frumhere]It could be perceived as churning depending upon the amount of assets you have under management.  The key to this business is new money.  If no new money comes in, yes, then a lot of people churn to grow revenue.[/quote]

With twenty years to gather assets you don't need to "churn" to hit $225k. All you need is a reasonable amount of AUM which shouldn’t be a problem to meet after that much time. Even at a rate of 50 bps, it only requires 55M in assets, which after twenty years is very little.<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

The insinuation is obvious, if you'd doing better than the bottom 10%, you must be churning. There are plenty of new people to the business here and there's no reason to spread that kind of misinformation in front of them. The more experienced people already know that isn’t true.

[quote=rickmwd]There is a "sunset provision" for brokers over 55 that truely retire.  Something like 50% of commisions earned for one year after retirement.  The only package I got was a box to put my stuff in.  [/quote]

When the word first went out, the end of July, did you have an inkling you might be effected? Do they provide you with information about where you rank in the entire company and within your LOS? Were you already in the reduced payout "penalty box" and if so, how many years were you there?

 Just trying to spread some information here to those not involved.

I don’t think the cards were tipped for all to see, but I would think someone in that bracket should have seen it coming.

[quote=rickmwd]I still miss those small accounts, they where fun to
help.  Always great to see young investors trying to accumulate
wealth.[/quote]



Aaaaaaaaaa!  You sound like someone who actually enjoys helping
people with their investments.  You sound like someone who enjoyed
his work.  No no no no!  That’s not the way the business
works anymore!  Gather as many assets as you can.  Then
gather more!  Make as much money as you can at all costs!!! 
Then next year, make more!!!   Money money money money! 
F*** the little people.



I’ll bet you even like talking about investments and the market in social situations, don’t you? 

"F*** the little people. "

Oh, that's just silly. You don't have to "f***" anybody to hit $225k after 20 years.

There is a fine line that seperates an advisor who is not making the cut, and one who has a lower priced comfort level. what’s wrong with a guy who is very content with a level of production  that gives them an income of $125,000. It’sfunny that when you are highered, management paints a picture of you running your own business, the way you want it. Eventually, they are always wanting you to do more.  

Last year I did 211k.  62 million under management.  Spotless U-4. Mostly bonds and long term stock holdings. I have never been in the penalty box. I was 80% transactional business.  Taxfree, CMO's and Treas....MS cut the commisions and we are at a 40 year low in rates.  Did it cause me to fall below $225k?  Yes, last year.  Did they give warning? Maybe to the guys below 200k.   BTW I was a "Sears Broker" and liked it.

Sorry to offen so many using the "churn" word.  The new term for that is managed money, wrap accounts, etc.  Please don't bother to respond to my post. I will not read them. Like I said I am retired at 45.  Reading these posts take me away from things I'd perfer to do and piss me off. Not much can be done now anyway.  I'll have a margarita and think of how lucky I am.  If you are unable too to the same, then try. 

Retired at 45 making 225k gross for the last 20 years. Keep smoking the weed. things always look better. BTW 225 after 20 years is pitiful no matter what your business model is. Retired at 45 bullsh*t!

I did'nt realize someone was holding a gun to RickMWD's head to read posts. Actually you sound like an idiot. Please tell me how in god's green earth....managed money is like churning. You guys in the business twenty years ago making 8% on mutual funds, selling bonds with 5 points in them, Strategizing stock business to earn hundreds of thousands in commissions on a book of 10 million, have no f*** 'n room to criticize new people in the business killing themselves to get  a lousy 1% fee, who are trying to grow an ethical business. Oh by the way... thank you for muddying up the water for the next generation.

I hope there is plenty of room in that trailer park retirement community for some of your other loser Morgan hacks!! Cheers. I thought you had to be 55 to get into those communities.

I have to call BS. There's no way you can do less than $225k on 62 million unless you're sleeping at your desk.  Sorry you got kicked, but that's just unbelievable. You don’t have to churn to do better than that, you just have to show up. Also, 225k at MS is $72k in gross pay, not much if you really are working.

211k off of a 60 mill book? Why on god's green earth did your BOM allow you to remain at your desk for the last 10yrs?

Now we know why the average MS brokers production is so much less than that of ML or SB. You would never be allowed to have those weak numbers off of a book that size at any other wirehouse. They would have given you an option of teaming up with an experienced hungry broker or shown you the door years ago. 

Honestly...I would have a field day in your old book, like shooting fish in a barrel. I gotta go, I'm having a wet dream just thinking about it.

Churning, churning, churning.....move 'em around....raaaawhide.  Ooops. Wrong channel.   

You do have a point, however.   That is a really low return on assets under management.

How are you retired rickmwd??? You haven’t made any money yet. Either the wife works, or mom and dad are supporting you. If not…I hope you like cat food.

If any MWD broker is looking for a place to build your book, career and is located in the Pasadena, CA. area, I am interested. Payout raise, benefits, full service with independent attributes. Please respond/replay to this post.

[quote=rickmwd]

Last year I did 211k.  62 million under management.  Spotless U-4. Mostly bonds and long term stock holdings. I have never been in the penalty box. I was 80% transactional business.  Taxfree, CMO's and Treas....MS cut the commisions and we are at a 40 year low in rates.  Did it cause me to fall below $225k?  Yes, last year.  Did they give warning? Maybe to the guys below 200k.   BTW I was a "Sears Broker" and liked it.

Sorry to offen so many using the "churn" word.  The new term for that is managed money, wrap accounts, etc.  Please don't bother to respond to my post. I will not read them. Like I said I am retired at 45.  Reading these posts take me away from things I'd perfer to do and piss me off. Not much can be done now anyway.  I'll have a margarita and think of how lucky I am.  If you are unable too to the same, then try. 

[/quote]

80% Transactional!  Where have you been the last 5 years?  No wonder you're not producing.  I don't know about your market, but if I had to bang around stocks and bonds, I would be out of the business. 

I'm highly offended that you think Managed Money is churning.  Do you honestly think you can pick an chose securities and perform better than a group of P.H.D's who watch their asset class, and only their asset class constantly? I love it because the clients get what they want.... results.  And if they don't get results, the money manager is the one that the client fires, not me.

As for Mutual Fund Wrap, you get a the ability to rebalance and choose the best fund in each category.  You don't have to worry about breakpoints or sales loads or CDSC.  You don't have to keep all your money in one or two fund families, you have total flexibilty.  How is that wrong?

Managed Money allows you to be a consulant, not a product pusher and is going to help keep clients from getting blown up, if the process is executed properly.