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New Assets--Changing Firms

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Aug 14, 2007 2:19 pm

I have about $3 million in new assets coming in next month.  My current firm is great, but there are some outstanding offers out there.  I may be making a move to a new firm.

My question is---which assets are the easiest to move from one firm to another?  80 % of my assets are in some type of a fee based account. 

I don't want to do a bunch of annuities with upfront trails, but i would consider putting the money into annuities that pay a lower comission upfront and then a steady trail every year after.  It seems annuities are very easy to move as it is just one form--no new account form--no ACAT.  Just taking the  chance that if the client doesn't move with me some jabroni in the office gets my comission.

I would think most of my clients would be warm to moving with me--but noone wants all of their assets jumbled around.

Could people with experience in this matter give me their opinion?  Where would you put new assets if you were contemplating a switch?

Thank you.

Aug 14, 2007 2:24 pm

Where would you put new assets if you were contemplating a switch?

I'd put them in the same place that I would put them if I was not contemplating a switch.   I truly believe that the best way to make the most money in this business it to ALWAYS do what is in the clients' best interest.

Aug 14, 2007 2:31 pm

[quote=vbrainy]

I have about $3 million in new assets coming in next month.  My current firm is great, but there are some outstanding offers out there.  I may be making a move to a new firm.

My question is---which assets are the easiest to move from one firm to another?  80 % of my assets are in some type of a fee based account. 

I don't want to do a bunch of annuities with upfront trails, but i would consider putting the money into annuities that pay a lower comission upfront and then a steady trail every year after.  It seems annuities are very easy to move as it is just one form--no new account form--no ACAT.  Just taking the  chance that if the client doesn't move with me some jabroni in the office gets my comission.

I would think most of my clients would be warm to moving with me--but noone wants all of their assets jumbled around.

Could people with experience in this matter give me their opinion?  Where would you put new assets if you were contemplating a switch?

Thank you.

[/quote]

You are a creep. If you believe in annuities so much, why isn't your book in them now?

On a serious note...I switched from one indy firm to another and all I did was have the new firm request a block transfer of the annuities. I may have signed a form or something, but it was a piece of cake. The old firm didn't even reassign any accounts until I was gone for 4 months.

Aug 14, 2007 2:46 pm

Wow, how would your clients feel if they knew you were choosing their portfolios based on how easy they’ll be for you to ACAT?

Aug 14, 2007 2:49 pm

[quote=gad12]Wow, how would your clients feel if they knew you were choosing their portfolios based on how easy they'll be for you to ACAT?[/quote]

The guy is a real piece of sh*t. Maybe he'll order out the certs and have his clients hand-carry them to his new office.

Aug 14, 2007 2:53 pm

[quote=Devils Advocate]

[quote=gad12]Wow, how would your clients feel if they knew you were choosing their portfolios based on how easy they'll be for you to ACAT?[/quote]

The guy is a real piece of sh*t. Maybe he'll order out the certs and have his clients hand-carry them to his new office.

[/quote]

Picking assets for clients based on how you can profit just reinforces and confirms all the bad things that DAtoo has to say about our industry.   

Aug 14, 2007 3:30 pm

. . . hmmmm well interesting.  I take the criticism under advisement.

Do you honestly think there is that much difference between:

-C shares

-Fee based mutual fund accounts

-Annuities?

Well, I don't.  I think that they all end up costing the same.  My clients want to work with ME.  That is the value I give them.  And by the way, they have all done very well.

Products don't help people Advisors do.

I work hard, contact my clients, rebalance, educate, find the best managers, etc.  And guess what?  I get paid.  I deserve to get paid.  I DO NOT PICK FUNDS, ANNUITIES, ETC. ON WHAT PAYS ME THE MOST.  I pick them on which best fit my client.

Most of them end up costing the client 1 to 1.5 %.  We have LONG term relationships.  I do not believe in transactional business or large upfront comissions.

OK, in light of that, can you take a look at the questions again?  Which is the easiest to move?

Have a good day.  Relax a bit.  Gee.

Aug 14, 2007 3:36 pm

If you have a good relationship, they are all easy to move.  I would take advantage of the move to leave behind clients who are not profitable.

Aug 14, 2007 3:45 pm

[quote=vbrainy]

. . . hmmmm well interesting.  I take the criticism under advisement.

Do you honestly think there is that much difference between:

-C shares

-Fee based mutual fund accounts

-Annuities?

Well, I don't.  I think that they all end up costing the same.  My clients want to work with ME.  That is the value I give them.  And by the way, they have all done very well.

Products don't help people Advisors do.

I work hard, contact my clients, rebalance, educate, find the best managers, etc.  And guess what?  I get paid.  I deserve to get paid.  I DO NOT PICK FUNDS, ANNUITIES, ETC. ON WHAT PAYS ME THE MOST.  I pick them on which best fit my client.

Most of them end up costing the client 1 to 1.5 %.  We have LONG term relationships.  I do not believe in transactional business or large upfront comissions.

OK, in light of that, can you take a look at the questions again?  Which is the easiest to move?

Have a good day.  Relax a bit.  Gee.

[/quote]

That's probably the best response that an exposed scumbag could come with. Nice job.

Aug 14, 2007 3:47 pm

Paperwork wise: It’s easiest to move mutual funds that are held at the fund company and not in a brokerage account because there is no head’s up to your old brokerage firm and no transfer fees to the client.

Aug 14, 2007 5:51 pm

Good advice.  I have done that for client’s from time to time.  I’ll take a look at it.

Aug 17, 2007 1:15 pm

[quote=Dust Bunny]Paperwork wise: It's easiest to move mutual funds that are held at the fund company and not in a brokerage account because there is no head's up to your old brokerage firm and no transfer fees to the client.[/quote]

What about small business 401k plans held with Transamerica or Principal.  I would assume those are pretty easy to move.

Aug 17, 2007 7:07 pm

Am I the only advisor who has 401k plans and who prospects them?

Aug 17, 2007 7:10 pm

[quote=vbrainy]Am I the only advisor who has 401k plans and who prospects them?[/quote]

pbrainy, weren't you told to leave? go away or suffer the consequences.

Aug 17, 2007 7:14 pm

DO WHATEVER IS BEST FOR THE CLIENT! 

Aug 17, 2007 7:15 pm

401K PLANS ARE A WAIST FOR YOU AND YOUR CLIENTS, IMO. LEAVE THE 401K’S TO FIDELITY

Aug 17, 2007 7:32 pm

[quote=jackbauer]401K PLANS ARE A WAIST FOR YOU AND YOUR CLIENTS, IMO. LEAVE THE 401K'S TO FIDELITY [/quote]

How big a waist are they?

Aug 17, 2007 7:36 pm

42?  XXL

Aug 17, 2007 7:39 pm

BTW:  401K plans are not a waste. 

They are give you good leads, especially in a small business ,for getting the business owners other accounts as well as investment account for the workers, their families and other accounts outside of the 401K.

Aug 17, 2007 8:05 pm

[quote=Dust Bunny]

BTW:  401K plans are not a waste. 

They are give you good leads, especially in a small business ,for getting the business owners other accounts as well as investment account for the workers, their families and other accounts outside of the 401K.

[/quote]

Well, some good information logically given.

401k plans of a large size are difficult to get, unless you know one of the decision makers.

But, once you get them they PAY and the lead base is great.  When they retire, I have always got the rollover.