Best firms to work for over the long haul

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Feb 8, 2008 1:07 am

[quote=compliancejerk] c’mon leave b24 alone he’s snorting the koolaid before you add the water.



200-300 families w/ $750-1000K how many ej’ers have gotten this far???[/quote]



I think you misunderstood my post. My point was that most advisors have books that go in one of two directions as they age. Either they do the 1,000 household thing to get to million-dollar level, or they pare back their book to get to their 300 top households and do the hgih-net-worth comprehensive planner thing. I didn’t say ALL or MOST have 200-300 families with that amount of assets. And I also did not say I am doing that, or every FA in every region does that. But if you look at MANY advisors past the 15 year mark, that is what they are doing. It’s not that crazy. I am close to a few top producers in my region, and I see what they do, and they also tell me about many of the other advisors they are ASPIRING to. I have no allusions that Jones advisors produce more than other firms. I know that there is probably no Jones advisor even in the top 250 in the country. That’s just not our model. But there are many $1mm producers, and some $2mm producers. And if you compare apples-to-apples, that’s not too bad. Most wirehouse or indy guys doing the more than $2mm in production are on teams, they are not producing that by themselves.

Feb 8, 2008 3:50 pm

24,

I  see what you are saying..you were implying numbers for the whole industry.  i do know  a ML guy w/400 households and 350mm under management.    The big Jones guy in my area has 150mm, 3 boas and 3000 households.  
Feb 8, 2008 6:56 pm

[quote=Broker7]24,

I  see what you are saying..you were implying numbers for the whole industry.  i do know  a ML guy w/400 households and 350mm under management.    The big Jones guy in my area has 150mm, 3 boas and 3000 households.  [/quote]   Correct.  However, I do know several personally that are in the 125-175mm range with only 300 or so accounts.  Now, it took them time to get there, and they had many more accounts than that at one time, but they Goodknighted them away.  Different advisors have different business models.  The guy with 3000 accounts is a transactional guy.  Has to be.  But the guy with 300 is a planner.  He gets everything, the life, the LTC, the 529, the IRA, the brokerage, and does the estate planning.  Having 300 clients with 500-750k avg. AUM isn't that difficult for someone in the business a long time.
Feb 8, 2008 7:09 pm

haha, we had a jones guy in my region with 100m at American alone.  probably 95% of his business.  he was sorta anti-fee based,

Feb 8, 2008 9:12 pm

[quote=theironhorse]haha, we had a jones guy in my region with 100m at American alone.  probably 95% of his business.  he was sorta anti-fee based,

[/quote]   The anti-fee based stuff kills me.  That is sort of the "old-guard" thing.  I can't wait to start doing advisory accounts and annuitizing my book.  As it is, I try to use quite a bit of C shares (relatively), and I have done exactly one SMA.  I would love to do more, but not many of my clients fit the profile.  Our minimum is 500K, but I have a hard time putting a 500K IRA into SMA's.  I just can't see the benefit (other than to me).  To be honest, a well-planned AMF portfolio can kick the snot out of most SMA's.  I've reviewed dozens of SMA managers, and most of their returns are average, without the focus on risk minimization like AMF.  When you get into the tax benefits, then it becomes much more appealing.  Hopefully as I continue to swim upstream, more of that will come.  I don't have many clients with large amounts of non-qualified money.  I have a few with $1-2mm, but that's the extent of it.  I have many IRA's in the $500-1mm range.   But I must say, if you are trying to run a simple, profitable business, and do right by your clients, just using American Funds is not the worst thing you could do.  I know a lot of indy's and insurance guys that use strictly AMF, Franklin, or Oppenheimer.  They do no stock or bond business, and only use one MFD manager.  If you believe in something, and most of your clients are of similar profile (net worths, etc.), why try to get all complicated?