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Feb 2, 2007 3:44 pm


vbrainey wrote: "Have you heard of rebalancing?  You can shift to any mutual fund in the same family at no cost to the client in a fee based relationship."

What does "fee based" have to do with that?  It works the same way in a commissioned account. Fee-based allows someone to move to another fund family without a new commission and/or surrender charges.   Regardless, I wouldn't say "no cost" to the client without mentioning the tax ramifications of the sale which are the same regardless of whether the new purchase is inside or outside of the family.

Also, one of the things that I see lacking in the conversation of the positives and negatives of annuity taxation is that all the points only hold true for non-qualified annuities.  Qualified annuities are taxed identical to all other qualified investments.



'Cause after the EDJ guys sell the A share, they are NOT going to rebalance into the same fund family. (for the most part, I know there are some good EDJs out there)

It is the fee based relationship, where your pay is directly tied to the performance of your client's account that keep you in the game.

Feb 3, 2007 3:53 am



Bank FC appears to have too much time on their hands

Babbling is SMART and got to the meat.  Saved that answer and printed it out for my file.

Rightway is stupid.  Have you heard of rebalancing?  You can shift to any mutual fund in the same family at no cost to the client in a fee based relationship.  For example, you can move from the MFS Utility fund (and you should this year) to the MFS Total Return Fund.



Why did you call me stupid?

I don't use alot of mutual funds, but the ones I do use are all in discretionary fee based platforms I manage.  I rebalance regularly and am a big advocate basic asset allocation. 

I like annuities for a hedge and income.  I win very very large cases regularly by presenting them properly.

Oct 10, 2007 12:56 am

Any more recent thoughts from the bank side of the business?

Oct 11, 2007 2:44 am

Why do I have a hard time believing that you're snatching up 6% of the bank's assets every year? Once again, you are caught in a lie.


This is my first year back in a bank b/d and I've brought in outside money in excess of $2MM. It's not a problem for a bank broker to bring in 40 - 50% of his business in outside money because we can effectively service $200M - $500M clients while folks at wirehouses may not be able to. 10 - 15% of money comes from current clients & money moving around. The rest from the bank. You did know that people typically have 3 banking relationships & at least one and as many as 3 brokers? There is other money.
Oct 31, 2007 4:06 am

According to Ken Fisher -

  "Banks are known for underpaying their financial consultants, and therefore one could presume that if they [financial consultant] were any good - they wouldn't be working at a bank"   I'm sure this is a stinger for bank reps, but it's true in my city.  Most of the guys who couldn't make it elsewhere go to the banks for the cozy base salary and easy sales.  The only exeption I've noticed is the small, local or regional bank/cu.  In those cases the reps write their own ticket because the management is too ignorant about the investment business to know any better.