Contract
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Lastly... there are no termination fees on financial planning. The client can request their planning fees back if the plan hasn't been given to them yet. Also, Ameriprise goes out of the way to make sure people know the Planning fees are not for Investment Management.
They would have to go through more hoops just to justify charging a planning fee and investment management wrap fee, esp since "investment management" is part of the financial plan. So what most advisors would do is take that section out of the financial plan.
As for the how do you get paid question.
I have NEARLY (notice I said nearly) always had to ask, “Do you want to know how I get paid?”
[quote=Jebediah] I have a client that passed away and i just had a meeting with his son, who is keeping his portion with me but also has $1.4 Million with Ameriprise. He wants me to give him a second opionion on his portfolio. You said yourself most of the 1.4 is in his 401k. You have seen the contract which you don’t understand and have come to the conclusion $500 couldn’t be all he is paying because you can’t do business this way and with a second opinion from another rep who has not seen the contract or statement. He brought in his contract with Ameriprise. Now me being from Jones, I am not accustomed to having a client sign a contract. He said all he pays is $500 a year, with no transaction fees, or wrap fees (other than the $500). His contract did not say anything about fee’s from what I saw, but I would think that there is no way that is all he is paying. Like I said, I know nothing about having clients sign a contract with me, but can any of you give me some tips on nailing this account or pointing out “hidden” fees or statements or whatnot on a client contract, that might make him think twice about the other broker, so that I can bring in this client.
How is this not positioning fees?
The $500 is for the financial planning. He is paying for the transactions as well, or in a wrap account. Nonetheless he is paying more than the $500 and doesn’t know he is You haven’t seen a statement so you don’t know either. Yet you are now stating this as a fact that you pointed out to get the prospect upset about the fees he is paying. What if the $500 is an charge for advice on the 401k and this is what the contract covers, a fee for service agreement. You may well be confusing his large 401k account (your words) with his small Ameriprise account. But you don’t know because you haven’t seen the statement and you don’t understand the contract. Who is the dbag if you have upset the client over a situation you do not have all the fact for and have carelessly moved forward anyway? What if you are wrong?
Actually i just spoke with the client again. He didn’t know. He’s pretty pissed about it though. YaY for me! Good job, you have upset someone over a situation you do not understand part of and do not have all the facts on the rest… over fees. But you don’t position yourself on fees.
I’m not positioning anyone on fees. When I ask a client, “Are you in a wrap account or do you pay transactional” and the client says “I pay $500 a year, because 2 days ago I signed a new contract with my Ameriprise Advisor and told him I did not want to pay $500 a year plus transactions” So he just walked in and asked or you asked? You are contradicting yourself. This is why you get the responses you do.
IF you have had any appointments, you know that one of the first things a client asks is, “How do you get paid”. I simply asked, “How did you pay before”. End of story. The “Fee” conversation ALWAYS comes up. I simply explain it in black and white and ask how they paid before, because it gives me an idea of where they came from Fees are usually one of the last things that come up in my experience.
How can I position anyone that walks in my office, and asks, “How do you get paid”. Again your own posts contradict themselves.[/quote]
You proved nothing. It’s like i’m arguing with a retard. The client told me he paid $500 ONLY. He was lied to. When he called me back, i told him what I found out. I was asking about the contract for my own purposes. If he is paying more fees that what he should be, of course i will mention it. Just like you would. So shut up. End of convo…
You told him what you found out? You don’t even know what type of account he has! You haven’t even seen his statement! You looked at the website and saw a disclosure that says something like “There may be additional fees or commissions.”
Here's the deal. You, personally, are not qualified to comment or judge what an appropriate fee structure is. You know 2 things: A shares and Advisory Solutions. Any other type of fee structure causes combustion in your brain. Heaven forbid some "prospect" gives you his separately managed account statement. "My dear, do you realize you pay 2.75% for your wrap fee??? That's DBAGGISH!!!" I would bet my life you couldn't explain the benefits of an SMA to a client, or why someone would want that vs. a regular wrap account. And since you can't (You don't need to confirm this for me, I already know) then what makes you a qualified judge on how another advisor runs his business or charges fees?Forget it 3rd. He’ll never admit he’s wrong. It’s not in his nature.
I saw this on an episode of “chopped” last night. The judges give criticism so that you can become a better chef. Yet this guy refused to listen. “His” way was the best.
Windy is the Chef Malik of RR.
You looked at the website and saw a disclosure that says something like “There may be additional fees or commissions.”
Don't forget that he asked another rep from Ameriprise (who hasn't seen the contract or statement) what was going on.Your first post asked for advice to find “hidden” fees so you could get this account. It is not a surprise that the conclusion you reached is the conclusion you were searching for. It should give you pause that you have come to this conclusion without having all the facts and not fully understanding the clients current situation. I do not think you are purposefully trying to do anything wrong, in fact I believe that you truly have good intentions. However, if your posts are accurate, you MAY be doing more harm than good. It is not a bad thing to tell a client that you need more information before commiting to an opinion, in fact that is the sign of a professional. Call me all the names you want, it does not deter from the fact you are proceeding with a selfish course of action regardless of the actual facts (as you don’t have them) under the guise of benefitting the client.
Let me ask you a question. What if you are wrong? You say you told him what you found out, but without the statement and understanding the contract, you can't know anything for sure. What if the client is so upset over your information based on assumptions of facts you do not know, he files a complaint or sues the other adviser? What if the other adviser is ethical and fully disclosed all costs and expenses associated with the account and now has to defend himself in a system skewed in the investors favor? What then? Although I do not think you are doing it intentionally with malice towards another adviser, how is this any better than when you were outed on this very forum, possibly putting your career in jeopardy? You say you come here to learn, yet you refuse to do so.[quote=Jebediah] You looked at the website and saw a disclosure that says something like “There may be additional fees or commissions.”
Don’t forget that he asked another rep from Ameriprise (who hasn’t seen the contract or statement) what was going on.[/quote]
I did a bunch more than just look at a website. You guys don’t know anything about this situation and you’ll obviously never get it. I’m done talking here. You just want to argue.
We only know the facts as you have presented them. With the facts that you have stated, you are acting in a reckless and selfish manner. If anyone feels differently let me know.
I asked a simple question. Not all this fee bullsht. If you can’t stay on topic and quit with the, “You don’t know anything crap” and “You’re going to hurt someone” crap everytime i ask a question. DONT POST. Stop hiding behind a stupid screen name to argue over every single unnamed detail, then turn around and ask me if i ever want to go indy to call you and come work for you…(Member that Moraen). Be a man and answer the damn question asked, instead of taking a sentence and building a case against me like you know EVERYTHING about the story. You are making assumptions on EVERYTHING…I don’t care how long you’ve been in the business, or what you know, or what I don’t know…Get the f** over yourselves and just answer the question asked, otherwise ignore it. Is it really me that is arrogant when every post turns into what YOU know, that I don’t? I’d say it was more you. This site has become total sh*t…
Fact: You haven’t seen the client’s statement
Fact: You "found" information that you told the client and got them upset Fact: You revealed this information to the client without knowing what type of account the client even has. Conclusion: You're the a$$hole.[quote=3rdyrp2] Fact: You haven’t seen the client’s statement
Fact: You revealed this information to the client without knowing what type of account the client even has.
Conclusion: You’re the a$$hole.[/quote]
I received all the information I needed. All you see is what you see here, then actualize it as the full story. You forget i could have received them since 2 yesterday. You’re the asshole.
You said the client’s son is going to mail you the statement. You said this yesterday. I’ve met with a lot of prospects and clients over the past few years and I know none that would overnight a statement to someone who’s not even their advisor yet. You received the information you wanted to receive. That, I don’t dispute.
but can any of you give me some tips on nailing this account or pointing out “hidden” fees or statements or whatnot on a client contract, that might make him think twice about the other broker, so that I can bring in this client.
Not without knowing all the facts of the prospect situation. First, find someone to explain the contract to you. Second look at the statement before making any assertions to the prospect as this may lead to more problems than you solve. Third, don't assume there are hidden or unnecessary fees, concentrate on what you can do for the client. Doing these things will establish a strong relationship with the client that will last.[quote=Ronnie Dobbs] [quote=3rdyrp2] Fact: You haven’t seen the client’s statement
Fact: You revealed this information to the client without knowing what type of account the client even has.
Conclusion: You're the a$$hole.[/quote]
I received all the information I needed. All you see is what you see here, then actualize it as the full story. You forget i could have received them since 2 yesterday. You're the asshole.[/quote] You found out all the information you needed in 1 hour and 9 minutes for a $1.4mmm prospect based off a contract you do not understand, the prospects memory, and an anonymous Ameriprise rep who out of the kindness of his heart wanted to help you get an account from his company? You see, these are facts that are in black and white, and they lead the rest of us to question you. I am taking more pause for thought about a posting on a forum than you took with the client. That says something.
Did I say mail? That was my bad. He faxed it to me. I think i’m done on this site. Volt said something to me the other day that got me thinking. You know I’ve been lucky to have met quite a few million dollar producers and VERY successful advisors and everyone of them have one thing in common…
They don’t post on this site…
Did I say dbag? My bad. I meant best informed, most honorable, honest adviser ever!!!Did I say mail? That was my bad. He faxed it to me. I think i’m done on this site. Volt said something to me the other day that got me thinking. You know I have met quite a few million dollar producers and VERY successful advisors and everyone of them have one thing in common…
They don’t post on this site…
Windy - I do remember. Consider the offer rescinded. If you can’t check your ego, I don’t care if you produce $10 million a year, I don’t need you.
I made that offer when I thought you were just misunderstood.
Good luck.
I don’t know. I’ll see when he sends me the statements. I figured he might be in all C or B shares, but the CFP that I called from Ameriprise here told me that he’s paying transactional or wrap fees not just $500 annually.
This was posted well after this..... Actually i just spoke with the client again. He didn't know. He's pretty pissed about it though. YaY for me!...I'm off to see how the world ends..... Couple other things $1mmm producers I know (not met, know) have in common: honesty, integrity, and humility.