Bonus Money Hits Tomorrow
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remember you will need to pay taxes on this money. I would only invest one years amount in mutuals or the stock market at a time unless you are very conservative. Money market CD’s or ARPS would be the best options. Also, for tax purposes maximize your 401k’s and if your wife works, have her maximize hers also. This will save you almost 40% on 15500 or 31k a year. Be prudent with the windwall and treat the money like you would a client.
All that cash is not really yours until it vest each year. I heard about a guy who went to MS in 2000 and put his bonus in tech stocks. He then was let go in 2003 and owed money to the company and to the IRS. I also knew another guy at another firm who did the same thing with options and tech stocks. He blew his account up and owed the company money in his account. he also owed part of his bonus back after he quit. I have no idea how it ended because he has disapeard??? I will add he was an a## and it could not have happened to a better person Just some ideas...I put some in Eaton Vance's National Muni at NAV yielding a tax-free 4.7, some in their tax-managed equity funds, and the remainder will sit in centnenial. I see clients dipping into these sorts of windfalls all the time (send me $1000 for this, send me $5000 for that). I will semi-pretend it aint there.
We are treating ours as if we never received it. Even put in a separate account.
As for the cap. gain distributions, I did a calculation and find that if you put it in most American funds, the cap gain distribution this year will be about 5%. With a 15% federal plus 3% (Illinois) the taxes will be about 1% of the investment. Since the market can move much more than that in a single day much less six weeks, I am considering investing now in case we get a christmas rally. Anyone care to challenge my thinking here?
Might I suggest a UIT? No cap gains to worry about. Van Kampen and First Trust have some nice ones. For IndyOne's earlier recommendation, they both have (I think) a financial sector UIT.We are treating ours as if we never received it. Even put in a separate account.
As for the cap. gain distributions, I did a calculation and find that if you put it in most American funds, the cap gain distribution this year will be about 5%. With a 15% federal plus 3% (Illinois) the taxes will be about 1% of the investment. Since the market can move much more than that in a single day much less six weeks, I am considering investing now in case we get a christmas rally. Anyone care to challenge my thinking here?
Id stay away from the Financial Sector UITs until there is some sort of uptrend. I think the subprime mess has a long ways to go, several of the larger companies dividends could be cut, and one thing I have learned…never get in the way of a runaway train.
Congrats. You’re all rich!
May I humbly ask: 1) Will your branch office be open in 16 mo.?
2) What will your compensation package look like?
3) What will WB’s policy be regarding money market funds for your valued clients?
4) At what production level will you be made to feel human under WB?
Enjoy that check!
YHWY++++++++Glass half empty? Half Full? You decide! ROFLMAO!!Congrats. You’re all rich!
May I humbly ask: 1) Will your branch office be open in 16 mo.?
2) What will your compensation package look like?
3) What will WB’s policy be regarding money market funds for your valued clients?
4) At what production level will you be made to feel human under WB?
Enjoy that check!
good move gordon, illinois rep, you understand. AGE sold at the top also.
The funny thing about WB is that they actually won the battle against BAC. These guys have been in a battle since they were NCNB and FU (both were NC based). BAC may have won the banking side but Wachovia killed them on the bank brokers and regular broker side. Maybe BAC will buy Merrill to win the pissing contest. Lastly, I am glad to see you are putting money in the american funds. It is amazing how they have performed giving their size. I have money there myself. Also, I am in NYC this weekend for my kids birthday so they can go to the american girl store. We are staying at a American Funds apartment.(my spouse works there).. What a company. Lastly, if you have young daughters, try to avoid the American Girl experience because it really is capitalism at it worse. This is why all the countries in the world hate us for our outlandish spendingVictim anyone? 1. More than likely...not just mine, most. 2. We'll know soon enough. By the way, even if AGE had remained independent there was serious discusion of going to some sort of "grid" and beleive it or not, the WS grid like system was right up near the top of the list. 3. Why are so many stuck on this issue? I have spoke with numerous WS reps and there are work arounds to this "issue". You buy AF or GS money market funds. Yes, it means that you or your FA have to 'manually sweep' them but what is so hard about that? 4. VICTIM!!! So far I so no indication that I won't "be emade to feel human". Look yHWY, you have obviously made your decision to depart, so be it. Sour grapes and that big chip on your shoulder will not help you in the long run.Congrats. You’re all rich!
May I humbly ask: 1) Will your branch office be open in 16 mo.?
2) What will your compensation package look like?
3) What will WB’s policy be regarding money market funds for your valued clients?
4) At what production level will you be made to feel human under WB?
Enjoy that check!
Yup, I’m a victim. My LPL office will be open for business on Friday. I will have 100% control over every aspect of my business and keep 92% of my money. My career is completely my own for ever after.
Wait, who are the victims here?? Denial ain’t just a river in Egypt, guys.
Thank goodness you’re finally leaving. It couldn’t come soon enuf for both you and all the rest of us “deniers”. I’ll alert Bagby and Danny of your immenent departure…Unfortunately I don’t think you can expect a call or a going away party.
[quote=YHWY]Yup, I’m a victim. My LPL office will be open for business on Friday. I will have 100% control over every aspect of my business and keep 92% of my money. My career is completely my own for ever after.
Wait, who are the victims here?? Denial ain’t just a river in Egypt, guys.
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You have to his some pretty serious numbers to get the 92% payout. Even then, you will still not clear 92% because of ticket charges and retention on fee based programs.
Still, it’s a damn sight better than working for a bank, which is what Wachedwards is.
Best to you too, Shred (and others).
Just curious, what have you told your clients who ask about the merger? Do you read the canned script right from AGE-net, or just (honestly) say “I don’t know Mr. Jones.”?
The path of least resistance is always the immediately attractive path because it entails doing nothing. I don’t care what any of you do, but I will laugh at you to myself because your reaction to this merger has been that of scared children, with WB being your new step parent.
Once anyone does the math regarding indy vs.wirehouse, it immediately becomes a no-brainer, which is a great fit for some of you, apparently.
By the way, these chat sites are nothing but avoidance behavior. If you all used the energy you waste here in production, you wouldn’t care what someone like myself says or thinks. Over and out.
[quote=YHWY]Yup, I’m a victim. My LPL office will be open for business on Friday. I will have 100% control over every aspect of my business and keep 92% of my money. My career is completely my own for ever after.
Wait, who are the victims here?? Denial ain’t just a river in Egypt, guys.
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I’m glad for you YHWY, really I am, but although you’ll have MUCH more control over your business than at AGE, I hope you recognize that you won’t really have “100% control over every aspect” of your business. LPL - or any other B/D for that matter - will certainly impose limitations both from a platform standpoint and compliance standpoint.
If you went full RIA with no B/D you’re 100% in control comment would be closer to the truth, although even there you have to deal with SEC regulations and platform constraints.
So much closer to 100% control, but not quite there. Still, it’s quite an improvement …
YHWY…
Good luck to ya man!!!! I will be in your shoes pretty soon and wish you the best! Im still waiting to grow the kahonies to pack up and leave. Keep in touch and lemme know how it goes!
Oh, and Joe, LPL’s 92% payout starts $250,000.00. (They pay everyone with my business mix at least 90%).
It is a given that overhead (including ticket charges) detract from the payout. You are spot-on that it absolutely KILLS even the old AGE, which is going bye-bye specifically because it “paid its brokers too much.”
I can't speak for others but I can give u the 3 sec. version (not that u care). "we are cautiously optimistic but will always act in your best interest if we feel this merger is not working". Easy, to the pt and leaves lots of leeway. By the way, who says we aren't doing anything?? Just b/c we choose to actually see what might happen instead of acting impulsively, doesn't mean that we are now locked into paralysis?? Believe me, our clients respect our decision just as much as you hope your clients will respect yours. If you really didn't care what any of us do, you wouldn't be here looking for confirmation of your actions. Just leave and see what happens. If you have great relationships with your clients you will be "successful", if not, you'll need that higher payout to survive and breakeven. Laugh all you want, I am the one in the driver's seat. Believe it or not, you are too. I have had this converastion with 2 other FC's in our office. What they choose to do is their business, my only comment was to evaluate all the options from a position of knowledge. That means that you actually have to see what the ground will look like at Wachwards. If I/you don't like the new structure, our decision is that much easier. Personally, I love this line: What do I have to be scared of?? I have NO IDEA what you are talking about?? I don't know what you should be scared of either?? I already have met w/ all the major firms in town, and the indy's, and I have a pretty good feeling that I am in the drivers seat. I have also spoke w/ "senior management" and Danny on 2 seperate occasions and have to admit that I am impressed, while still being cautious. Whether it is at WS, indy or w/ a wirehouse I am still in the drivers seat. With regards to "doing the math", there are many more variables than your simple division vs. addition element. I won't even touch on the production issue, the gap is too wide and deep.Best to you too, Shred (and others).
Just curious, what have you told your clients who ask about the merger? Do you read the canned script right from AGE-net, or just (honestly) say “I don’t know Mr. Jones.”?
The path of least resistance is always the immediately attractive path because it entails doing nothing. I don’t care what any of you do, but I will laugh at you to myself because your reaction to this merger has been that of scared children, with WB being your new step parent.
Once anyone does the math regarding indy vs.wirehouse, it immediately becomes a no-brainer, which is a great fit for some of you, apparently.
By the way, these chat sites are nothing but avoidance behavior. If you all used the energy you waste here in production, you wouldn’t care what someone like myself says or thinks. Over and out.
[quote=YHWY]Congrats. You’re all rich!
May I humbly ask: 1) Will your branch office be open in 16 mo.?
2) What will your compensation package look like?
3) What will WB’s policy be regarding money market funds for your valued clients?
4) At what production level will you be made to feel human under WB?
Enjoy that check!
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1. I Didn’t know the answer to that question when we were AGE!! Also wouldn’t know it if I was at ML, MS, RJ, SB etc etc…any firm can close a branch at any time…However we are the only branch in an affluent retire market for either firm, and lets just say the new CEO knows the market well…+ we have a Multi year lease in place.
2. Comp Package will be the same for the next year at least…that is more certainty then I have ever had at AGE…same would be true at any firm, all firms make changes yearly.
3. The current ploicy that has been in place for years w/ WB is that you can invest clients in a mulititude of MM MF’s…unlike AGE’s past policy that prohibited it.
4. No idea but if you produce enough that never matters.
Two words, nestegg: spell check.
Check it out sometime.
[quote=nestegg]
[quote=YHWY]Congrats. You’re all rich!
May I humbly ask: 1) Will your branch office be open in 16 mo.?
2) What will your compensation package look like?
3) What will WB’s policy be regarding money market funds for your valued clients?
4) At what production level will you be made to feel human under WB?
Enjoy that check!
[/quote]
1. Didnt know the answer to that question when we were AGE, wouldnt know it if I was at ML, MS< RJ etc etc…any firm can close a branch at any time…However we are theOnly branch in an affluent retire market for either firm, and lets just say teh new CEO knows the market well…+ we have a Multi year lease in place.
2. Comp Package will be the same for the next year at least…that is more certainty then I have ever had at AGE…same would be true at any firm, all firms make changes yearly.
3. The current ploicy taht has been in place for years w/ WB is taht you can invest clients in a mulititude of MM MF’s…unlike AGE’s past policy that prohibited it.
4. No idea but if you produce enough that never matters.
[/quote]
[quote=Morphius]Two words, nestegg: spell check.
Check it out sometime.
[quote=nestegg]
[quote=YHWY]Congrats. You’re all rich!
May I humbly ask: 1) Will your branch office be open in 16 mo.?
2) What will your compensation package look like?
3) What will WB’s policy be regarding money market funds for your valued clients?
4) At what production level will you be made to feel human under WB?
Enjoy that check!
[/quote]
1. Didnt know the answer to that question when we were AGE, wouldnt know it if I was at ML, MS, RJ etc etc…any firm can close a branch at any time…However we are theOnly branch in an affluent retiree market for either firm, and lets just say the new CEO knows the market well…+ we have a Multi year lease in place.
2. Comp Package will be the same for the next year at least…that is more certainty then I have ever had at AGE…same would be true at any firm, all firms make changes yearly.
3. The current ploicy that has been in place for years w/ WB is that you can invest clients in a mulititude of MM MF’s…unlike AGE’s past policy that prohibited it.
4. No idea but if you produce enough that never matters.
[/quote][/quote]
Yeah…my mind works faster than my computer does…its a problem! They need to build spell check into these forums lol!