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My KYC Class

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Nov 10, 2009 2:25 am

[quote=Ron 14]

My class

50yr old dude, took over 20mil, still there 25yr old dude, new/new, left for UBS 3 months in and is on fire Me-Handing out suckers 28 yr old dude, got office of 10mil and his dad is a GP with a 250mil office, still there 28 yr old dude, GK 2, dad is home office GP, still there 35 yr old dude, dumbest guy I ever met, took over 15mil office, will be fired for ethics eventually but hasnt been yet 30yr old dude, transfer broker from Schaub, no clue his story but still around 40yr old chick, was spread eagle with a different guy at KYC and PDP, ugly as hell, no clue about her   There were 2 PASS guys also that I have no clue about   So 5 of 7 are still there almost 4 years later, 3 unknown[/quote]   How much of that would you have received had you kept your nose to the grindstone?
Nov 10, 2009 2:37 am

Those guys were given those offices right off the bat. It had nothing to do with work.

Nov 10, 2009 3:20 am

volt check your PM’s

Nov 10, 2009 2:30 pm
Ron 14:

Those guys were given those offices right off the bat. It had nothing to do with work.

  Ron, you're starting to piss me off. Change your signature.
Nov 10, 2009 2:42 pm

[quote=Gaddock][quote=Ron 14]

My class

50yr old dude, took over 20mil, still there 25yr old dude, new/new, left for UBS 3 months in and is on fire Me-Handing out suckers 28 yr old dude, got office of 10mil and his dad is a GP with a 250mil office, still there 28 yr old dude, GK 2, dad is home office GP, still there 35 yr old dude, dumbest guy I ever met, took over 15mil office, will be fired for ethics eventually but hasnt been yet 30yr old dude, transfer broker from Schaub, no clue his story but still around 40yr old chick, was spread eagle with a different guy at KYC and PDP, ugly as hell, no clue about her   There were 2 PASS guys also that I have no clue about   So 5 of 7 are still there almost 4 years later, 3 unknown[/quote]   How much of that would you have received had you kept your nose to the grindstone?[/quote]   Which part, the took over assets part or the spread eagle chick?
Nov 10, 2009 2:49 pm
voltmoie:

[quote=Spaceman Spiff]As to my original KYC group, only 20 of the 60 are currently still around.  One guy is now in the corporate office.  He was given a small office, but didn’t survive.  I know nothing about the rest of my class.  I do know that my VV was about to do a Sunset plan with someone and take over a $100MM book.  So, he went from a $50MM book to a $100MM book overnight.  Not a bad deal. [/quote]

Spiff, can you tell me a bit more about how a Sunset plan works?  I’m speaking more logistically.  Do they combine offices?  What happens to the extra FA if so?

  Basic idea is similar to a Legacy office.  FAs share the space.  It lasts for 3 years, I believe. During the time they are sharing the office, the retiring FA continues to work with the clients, but slowly transitions the clients to working with the new FA.  New FA of course has to keep his head above water while it's happening, kind of like a GKN plan.  At the end of the timeframe the original FA is mostly acting like a consultant while the new FA runs the office day to day.  The retiring FA gets some perks for doing the plan, I think, like some trips after he retires.  He may get some increased payout too, but I don't remember for sure.  I'm sure there are some things I'm missing, but you get the idea. 
Nov 10, 2009 2:54 pm

A girl in my KYC class was her dad’s sunset… payout goes 75/25 50/50 25/75… older advisor not required to show up really, it’s Jones version of buying your book.

Nov 10, 2009 3:52 pm

Yeah, they have to set it up “officially” so that the veteran must work “in proportion to their split of the commissions” so that he can continue to be licensed and get benefits, etc asd an employee.  In reality, the retiring FA mostly just smoothes over his best clients for a while, then visits periodically.  In addition to the three year split, in the 4th year he gets a 10% “non-employee consultant fee”. 

So basically, for a modest $350K producer, you would receive like $225K net over 4 years, plus benefits, plus office profit, and profit sharing (because you are still employed).  With all the benefits and profit stuff thrown in, you end up with around 100% of T-12 paid over 4 years.  I think this was about the same as Merrill Lynch (my friend retired from ML about 5 years ago and sunseted an $85mm book to his son, and this was pretty much his deal).
Nov 10, 2009 4:26 pm

Thanks for the info.  - The office I legacy out of has an older guy in it.  His BOA hinted around at it the other day.  I don’t expect anything to happen but can always dream.

Nov 10, 2009 5:04 pm
SometimesNowhere:

[quote=Ron 14]Those guys were given those offices right off the bat. It had nothing to do with work.

  Ron, you're starting to piss me off. Change your signature.[/quote]  
Nov 10, 2009 5:29 pm
Ron 14:

[quote=SometimesNowhere][quote=Ron 14]Those guys were given those offices right off the bat. It had nothing to do with work.

  Ron, you're starting to piss me off. Change your signature.[/quote]   [/quote]     I love it. Thank you.
Nov 10, 2009 10:14 pm

Out of the 12 in my KYC we dropped two by eval/grad and only 4 made it to PDP.

  mid 40s chick. She was a BOA and her husband is an FA. So she was just going thru the motions.   mid 40s ex-pharm guy. Smooth talker. Had a 50/50 split on a 80mm sunset before KYC. He had to move his family out of state to do it.   late 20s chick from HO.   mid 40s guy about 2hrs from me. He made it to PDP a month later.   All four still doing well.   It was funny in KYC cause the "guy" you knew would knock the cover of the ball quit in week two cause his frat buddies made fun of him. The home office girl, in a town with like 1000 EJ offices, is still there. We were thinking she would go back in the box.   As far as I know only me and one other guy that left are still in the industry.   For you all still at Jones, I asked #2 what it took to get a sunset. He said first you have to know it exists, second be willing to move anywhere, last ask for it. If you show promise and are willing to move they will find an opportunity for you. Most newbs don't show promise hence the failure rate.
Nov 11, 2009 3:56 pm

What was the HQ girl’s name?  If she went to a town of 1000 people it had to be someplace like metro STL.  I’m curious if I know her.

Nov 12, 2009 12:26 am
Spaceman Spiff:

What was the HQ girl’s name?  If she went to a town of 1000 people it had to be someplace like metro STL.  I’m curious if I know her.

  Nice try company man!! Tell me who you are and I will have her call you.
Nov 12, 2009 12:45 am

Sorry, didn't mean to come across as trying to figure out your "secret identity."  Now that I read my post a little closer, and with a suspicious mind, I can see where you're coming from. 

Nov 12, 2009 12:59 am

No problem. I didn’t think you were but you never know on here.