Moving clients/AUM

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Dec 20, 2007 2:45 am

I have read many posts on this site and others, but I am curious about recent people who have left Jones what percent of your book are you able to move with you? I have been told 80%, but that seems really high.

Dec 20, 2007 2:53 am

That depends very much on how strong your relationships are with your clients.  If you’ve been with most of them at least 4-5 years and you’ve done even a decent job of choosing investments, your retention rate should be high, assuming you don’t do something stupid like going to work for Primerica or World Financial Group.

Dec 20, 2007 3:43 am

I took over an office and the previous advisor was able to take at least 75%.. So I think that is true.. I worked very hard to keep the accounts and they still left.

*I wish you wouldn't leave Jones but if you do.. You should be able to take the majority.   Miss J
Dec 20, 2007 6:11 pm

[quote=MISS JONES]

I took over an office and the previous advisor was able to take at least 75%.. So I think that is true.. I worked very hard to keep the accounts and they still left.

*I wish you wouldn't leave Jones but if you do.. You should be able to take the majority.   Miss J[/quote]   I stepped into a similar situation, and of the remaining 30% in my office, probably 25% of that was worthwhile accounts.  Mostly it was difficult personalities and LOTS of 30 yr munis that clients had no intention of selling ever.  Plus the $10,000 accounts.  And the guy I replaced had the personality of a snake oil salesman.   Jones always tells you how when IR's leave they only take 30-40% of the accounts, or whatever that number is.  That is a meaningless statistic.  If I left where I am at now, I probably wouldn't even send a letter to 1/2 of my clients, because I have a ton of small accounts where the client will probably never have money.  What matters is how much AUM and A clients that you take, not how many C clients you leave behind.  If I could tactfully do it, I would love to transfer 1/2 of my clients to someone else now.  They burn a ton of my assistant's time, and we make virtually nothing from the relationships.  A firm change is a good way to purge some of the accounts that you are losing money on when your time is figured in.  
Dec 21, 2007 3:26 am

I left AGE 7 weeks ago for ML.  To date I have 75% in the door.  I spent lots of time analyzing my book before the move.  I started production 2/2001 and had 58MM under management when I left. Similar to jones, I was able and happy to take anyone and everyone at first. Of course during more recent years focused only on viable relationships.  The most interesting realization was that 1/2 of my households were simply dragging down my production. Of my 240 households, the top 100 accounted for 90% of my AUM…The bottom 140 household housed only 10%!!. While I foolishly got into the business thinking I could help those lesser clients become financial independent, it was me who would need the help if I continued that offer. Starting out with nothing and virtually no contacts, I actually enjoyed helping someone get started. Not to mention…who knows when one of those little guys may come in to something, Right?  But I have my own family to worry about as well and since the move, I have only pursued those clients north of 100M .  I will end up with 85-90%. Instead on being bogged down with too many small clients, I have shed over 60% of those I previosly had to service.  I will provide much better attention and service to the currently viable clients and I am confidence that my business will double as a result.  I started out of college and my trailing 12 was 475M now at age 32. While I am young and have much to learn, I believe that when the dust settles, I will have twice the time I used to have.  I plan to replicate my current clients through referrals in order to double production in the next 5 years.  While the move continues to be the most stressfull thing I have done since I was a rookie, it will prove to be best thing I could have done.  Not to mention, the technology and client service capabilities are equivalant to driving a ferrari vs the Honda Civic I used to drive at AGE.