[quote]Good discussion and I certainly agree with you there is not 1 way for everyone to work. That is primary reason that I hope Congress stops all these non 7 licsensed annuity people from acting like investors (to me that is the worse thing in our industry).
Of course it is important to annutize your business and there is nothing wrong with that. My beef with AS instead of some INDY doing it themselves is the hidden fee side. Most advisors think that the client LITERALLY only pays 1.35%.
I want to have my business paid on a AUM basis but I don’t really want to have all my clients money in mutual funds or have Edward Jones manage the mutual funds for me. Does anyone think there will be a time in Jones for an advisor who wants to be a CFP planner or are we being led further and futher into the salesman role?[/quote] 
A) You must have some really dumb advisors in your region.  What makes them think that the fee negates (that means gets rid of) the internal expenses.  You should tell anyone that says that to you that McDonald’s is hiring. 
B) I think it’s just the opposite.  I think most people at Jones, FAs and GP’s alike, would love to go to a planning model.  I think they realize they can make the same or better money and have fewer headaches with platforms like AS.  In the near future, according to the GP in charge of AS, you’re going to see fee based accounts where you can use individual holdings as well as the models if you choose.  There’s a reason they’ve spent so much time, effort ,and money on programs like FAST.  It’s not so we can sell more tax free bonds.  It’s so we can plan with our clients who might otherwise want to leave us and go find a “planner”.   

[quote]The other benefit of fee based business is that it eliminates the benefit of churning. I’ve seen cases of four segment fives with monthly income varying by a factor of 100%. All with the same basic AUM. A 15% or 20% variance is fine, but not 100%. After hearing about some of the trades I wonder how they get through field supervision.[/quote] 
I always wondered about this too.  A guy with $80mm in AUM doing $650K, and another guy with $80mm doing $350K.  Both with commission-based books.  Now, there’s lots of variables (insurance, type of product, etc.).  But it does seem illogical.  Of course, if you were fee-based, you are probably doing $650-900K on that $80mm.

Spiff- I hope that you are correct. As far as the charges of AS, ask some of the people in your region. I bet more than half of them think AS is 1.35% total charges.

FEE BASED BUSINESS IS THE ONLY WAY TO GO.
PERIOD.
YOU JONES GUYS FIGHTING IT ARE IN MF DENIAL
YOU AND YOUR FIRM ARE LIVING IN THE 80’S
START CONVERTING YOUR BOOK NOW

 

okey dokey

[quote=Wet_Blanket]I thought you would appreciate it...but I'm still shopping around for a good avatar.  Is it possible to load one up from a website instead of saving it to your computer?[/quote]

I took the good avatar.  I think I had to save it to my computer first and then upload it.  Then I deleted it from my pics.

EDJ does rebate 12b-1 fees. HOWEVER, they didn’t originally. It wasn’t until EDJ was fined $100MM for something similar that they decided to refund 12b-1 fees. Again, HOWEVER, at the same time they instituted a 0.09% “administrative fee” to pay for “marketing materials and administrative costs.” You know about how much the 12b-1 fees come out to be on an average advisory solutions portfolio? About 0.09%.

Last year when my company was in the merger process we ran short of funds and I contacted one of my friend who is working with investmentbank.com/financing/ and asked his advice.He knows the market well and successfully secure acquisition financing at the lowest cost of capital. If we face any problem in this process, we can seek the advice from such companies it helps when issuing companies work with advisors who both understand the unique structuring criteria of non-bank lenders and who have direct access to thousands of financing lenders across a variety of industries. For such purpose companies looking for acquisition, financing turn to these companies for financial needs.

These companies charge on the basis of final settlement of the deal . Their charging method is on the percentage basis.

Hi

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