That is not part of the biographies, but I personally know half a dozen of them, and they're all from the "right families," the "right schools," the "right side of town," and they all married into similar families.

Are there exceptions?  Sure, but the odds of a guy who doesn't move in the right circles having a chance to land the whales are just about nil.

For most people it would be easier to open four-thousand $10,000 accounts than one $40,000,000 account.

The rolls of failed brokers are loaded with people who washed out because they fancied themselves to be capable of opening the huge accounts and ended up having a termination conference with their manager.

[quote=Soon 2 B Gone]

That is not part of the biographies, but I personally know half a dozen of them, and they’re all from the “right families,” the “right schools,” the “right side of town,” and they all married into similar families.

Are there exceptions?  Sure, but the odds of a guy who doesn't move in the right circles having a chance to land the whales are just about nil.

For most people it would be easier to open four-thousand $10,000 accounts than one $40,000,000 account.

The rolls of failed brokers are loaded with people who washed out because they fancied themselves to be capable of opening the huge accounts and ended up having a termination conference with their manager.

Ultimately, the issue relates much more to knowledge, experience and credentials. Most of the wealth in this country is earned (I seem to recall one study saying that only 9% of the people with more than $5 million investment assets had inherited the money), so the truth is that having certain grace is not really that big of a deal.

However, one skill that is well developed with the acquisition of wealth is the ability to separate a truely hard working person from a bull***t artist. People who've made money generally understand enough about finance to determine whether the person whose sitting across from them knows what they're talking about. Most people putting themselves out as financial experts don't. The average broker lacks the knowledge and skill to be of much value to people with lots of money - they aren't very useful to the middle class. This is the challenge that the average wirehouse trainee must confront.

I recently constructed an excel spreadsheet for aone of my largest clients that analyzed the relative attractiveness of a pledged asset mortgage vs a conventional one and which factored in the potential for volatility in the pledged portfolio. (This is a CFO, with a consulting background with an MBA from a decent school.) After he reviewed it, he commented that this was why he transferred his account from MS PWM to me - that essentially this kind of work wasn't possible from MS because the advisors there didn't understand how to do this kind of work. They always gave him outputs from boiler-plate financial planning software that weren't flexible and they never really understood the basis of their recommendations.

I don't have an MBA and I didn't learn how to do this kind of stuff until I was on the job. I learned how to do it on my weekends and at night. The reality is that if you were smart enough to graduate college, you will be smart enough to learn how (on the fly) to create financial models on spreadsheets. But, most advisors don't want to do that because its hard and unpleasant and most lack the discipline to do something they don't like on their own. That's why they need a sales manager over their shoulder and why they resort to "Gorilla Marketing" strategies in order to get clients.

If you want to do UHNW business, its not about who you know or where you went to prep school - what matters is the work you do and the sophistication of your approach. Hard work, education, empathy and more hard work are what get you ahead in this business - and what will get you to the front of the class. 

Good post san fran.  <!–
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We are getting some excellent feedback on this forum.  Finally!!!!  We need more feed back like this and less of the D**k is B****R lingo.

 <?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

“The average broker lacks the knowledge and skill to be of much value to people with lots of money - they aren't very useful to the middle class. This is the challenge that the average wirehouse trainee must confront.”

Your opinion, how long does it take to make the transition from trainee struggling to hit production goals to a useful broker.   ML says we should do it in 2 years…

[quote=san fran broker]

Ultimately, the issue relates much more to knowledge, experience and credentials. Most of the wealth in this country is earned (I seem to recall one study saying that only 9% of the people with more than $5 million investment assets had inherited the money), so the truth is that having certain grace is not really that big of a deal.

However, one skill that is well developed with the acquisition of wealth is the ability to separate a truely hard working person from a bull***t artist. People who've made money generally understand enough about finance to determine whether the person whose sitting across from them knows what they're talking about. Most people putting themselves out as financial experts don't. The average broker lacks the knowledge and skill to be of much value to people with lots of money - they aren't very useful to the middle class. This is the challenge that the average wirehouse trainee must confront.

I recently constructed an excel spreadsheet for aone of my largest clients that analyzed the relative attractiveness of a pledged asset mortgage vs a conventional one and which factored in the potential for volatility in the pledged portfolio. (This is a CFO, with a consulting background with an MBA from a decent school.) After he reviewed it, he commented that this was why he transferred his account from MS PWM to me - that essentially this kind of work wasn't possible from MS because the advisors there didn't understand how to do this kind of work. They always gave him outputs from boiler-plate financial planning software that weren't flexible and they never really understood the basis of their recommendations.

I don't have an MBA and I didn't learn how to do this kind of stuff until I was on the job. I learned how to do it on my weekends and at night. The reality is that if you were smart enough to graduate college, you will be smart enough to learn how (on the fly) to create financial models on spreadsheets. But, most advisors don't want to do that because its hard and unpleasant and most lack the discipline to do something they don't like on their own. That's why they need a sales manager over their shoulder and why they resort to "Gorilla Marketing" strategies in order to get clients.

If you want to do UHNW business, its not about who you know or where you went to prep school - what matters is the work you do and the sophistication of your approach. Hard work, education, empathy and more hard work are what get you ahead in this business - and what will get you to the front of the class. 

[/quote]

+1, excellent!!!!!!

Regarding San Francisco's comments--very well written and well considered.

I tend to disagree with the Pollyannish idea that all it takes is perseverance and creativity.  Certainly that is part of it, but handling people's money is a very sensitive task--and the more they have the more likely they are to be very discerning in their choices.

I use the word "class" to summarize a variety of traits that are absent in most people--it's not just the knowledge of what a finger bowl is for, it's an array of things.

This forum has witnessed a discussion of how to properly dress for this career--those with the class that I am speaking of know that it is never acceptable to suggest you're a financial professional if you're not wearing a dark suit.  Period.

Those with the class that I am speaking of know the difference between advise and advice.

Those with the class that I am speaking of do not excuse a lack of formal education with comments such as "This is a sales job, plain and simple."  Yes it's sales, but if you're not well spoken and able to write the language most clients will "pick up" on your inabilities and exclude you from consideration.

I think it's a poor use of an advice giving forum to suggest that the dull witted can make it in this business if they just try hard enough.

I think it's a poor use of an advice giving forum to suggest that the physically unattractive or poorly groomed can make it in the business, because they cannot.

I think it's a poor use of an advice giving forum to suggest that somebody who does not have an extraordinary network of contacts can survive long enough to gather enough assets to succeed.

I think it's a poor use of an advice giving forum to suggest that a married person who does not have an exceptionally strong marriage is going to be able to keep both the career and the marriage alive.

Finally I think it's a poor use of an advice giving forum to suggest that a young man or woman can generate confidence among those with money to invest--but can very likely convince lots of people to add to their life insurance coverage, open a retirement vehicle, or sell a 45 year old who has maxed out his 401(k) some tax advantages in a variable annuity.

The ranks of failed regsistered reps is littered with people who did not take time to consider the realities that I am pushing--based, of course on nothing more than thirty five years worth of watching the revolving door.

[quote=DirtyDeltaBro]

We are getting some excellent feedback on this forum.  Finally!!!!  We need more feed back like this and less of the D**k is B****R lingo.

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“The average broker lacks the knowledge and skill to be of much value to people with lots of money - they aren't very useful to the middle class. This is the challenge that the average wirehouse trainee must confront.”

This is exactly what I am fighting with right now.  How did you manage to learn all of this, prospect, and open accounts?    [/quote]

Thanks everyone for your nice comments.

Its a difficult tightrope to walk, but what I did was:

In the first year, I read the books I was given in training (unlike most of my peers) and I also read at least one book a month (Intelligent Asset Allocator, Winning the Losers Game, etc). I also took an excel training class. I went to at least 2 networking events a week, cold called about 2 hours a day and 1 hour to "warm calling" leads I was given by the company (mostly crap). I had a pretty good idea of my niche market after about 6 mos.

In my second year, I started studying for the CFA - 2 hours a day (I hid from my sales manager while doing this - although he was a pretty cool guy anyway - just didn't believe in anything but cold calling.) I attended ALL of the firm's training classes held locally (free food and good information - management didn't seem to mind if it was firm training.) I read just about every trade journal for my niche's section on financial planning.

In my third year, I started reading lots of stuff on financial planning and my niche market (a decent chunk of books are available). One or so a week. I also started reading a lot about stock options on the web. (Part of my niche.)

In my fourth year, I studied longer and harder for the CFA Level 2 and did nothing else, but read a little bit here and there.

I finished the CFA level three earlier this year. Now, I read all of the major pieces from the firm's research (I'm in my fifth year) - I'm pretty busy right now (although, not TOO busy to post apparently). I am planning on taking the CFP test at some point in the future...

[quote=DirtyDeltaBro]Your opinion, how long does it take to make the transition from trainee struggling to hit production goals to a useful broker.   ML says we should do it in 2 years… [/quote]

IMHO, the ML has really studied this and I'm inclined to agree with their take on these matters.

SF Broker, the fact you're up and at your place of work at 0600 PST or at least up out of bed before the bell and functioning at 90% plus efficiency says a lot for you.

WORK ethic, unfortunately, is a 4 letter word for many in your profession.

Great posts....

[quote=ymh_ymh_ymh]

SF Broker, the fact you’re up and at your place of work at 0600 PST or at least up out of bed before the bell and functioning at 90% plus efficiency says a lot for you.

WORK ethic, unfortunately, is a 4 letter word for many in your profession.

Great posts....[/quote]

[quote=mktsystms]

I really like SF Broker's posts too, and strong work ethic has to be a given for anyone to succeed, no matter the industry.  But in regards to time of day, if you live on the West Coast, and you're in the investment business, the days start early. (The bond market opens at 5:30 am, PST.)
[/quote]

Try living in Hawaii.

[quote=Soon 2 B Gone]

[quote=mktsystms]

I really like SF Broker's posts too, and strong work ethic has to be a given for anyone to succeed, no matter the industry.  But in regards to time of day, if you live on the West Coast, and you're in the investment business, the days start early. (The bond market opens at 5:30 am, PST.)
[/quote]

Try living in Hawaii.

Wow, great posts.

[quote=AirForce]Wow, great posts. [/quote]

I would think that a guy in the Air Force would have known about the time zones.

Soon 2 B gone. We know time zones, but typically we are going east, SW Asia, instead of to Cali.

[quote=AirForce]Soon 2 B gone. We know time zones, but typically we are going east, SW Asia, instead of to Cali.[/quote]

Are you saying you can travel east to reach the west?  What's wrong with you, do you think the world is round?