ML sucks now what?
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Allright people I realize that ML has blown it. I have 5 years in the business and do 400k in revenue 30 million in AUM. 88% of my book is annunitized in managed products. I have run my own business befoe but not as an advisor. Looking to move quick. I have norrowed it down to LPL, Commonwealth, Cambridge and NEXT. Have had many conversations and I am conteplating doing my own OSJ or farming it out? I am not worried selling against ML but in this environment I am concerend about taking clients although I have had good feedback so far. I hate having to go hire a staff. Question is do I use some sort of “admin hub” or just bite the bullet? Any expeirances out there? Any idea’s of which BD to use?
Stop the flames just post on yahoo fianance. Trying to get direction here"Inch by Inch"
You have run your own business before but not as an advisor? im confused, are you part of a team?
Usually people can bring about 50% of the book…In this market would say less, but in your case maybe more. But they guys at ML will paint you as too young to make it. If 50% comes can you do 10K a month going forward?
I have discussed with several friends who are also indy osj’s that if I could do it over I would have gladly given up a reasonable percentage (10-15% as a ballpark) to an OSJ just to put that aspect of the task off for 12-18 months while I focussed on moving my book over and getting the pipeline filling operations back up to speed.
Just food for thought.
As a ws guy i would not advise a move here…seems like the jig is up. With a rollover business i would go RIA with Schwab
[quote=mlgone]Thats what I was thinking Hyman. Make the transition smoother. Still better than a 36% payout. But infrastructer is what worries me in this Madolff world. ML is easy to sell out of but selling “XYZ Investments” isn’t. What firm do you like for managed business?[/quote]
I am with LPL and I’m happy with them.
Last time I checked, they haven’t needed to ask for government handouts to stay in business, nor have they sold themselves to a bank out of desperation. I think if you present FACTS to people they will be more comfortable with “XYZ Investments” than you might think.
There are other good firms out there, I just happen to think I’m already with the best.
[quote=mlgone]Allright people I realize that ML has blown it. [/quote]
I was thinking about this type of thoughyprocess last night. Has ML really blown it? (Don’t answer that) More specifically, has the ML Global Wealth Management really blown it?
I tell my clients that the order of my priorities are:
My family
My clients
My firm
I also express to them that if things go bad at ML and that they would be better off with me at someplace else rather than with me at ML, they will hear from me but I’ll be calling from someplace else. I then follow that up with, at this time, besides for big moving bonuses or higher payouts (which only go to me) and maybe not having to explain what the bad press about ML, no other place has demonstrated why my clients would be better off with me there rather than with me at ML.
Besides for the emotions that people feel with all of the bad press that ML has been getting, have things gotten worse for clients at ML?
–WM
What is the relevance of this post? Are you trying to be funny?Edwards and Jones warned us about ML
[quote=WealthManager]
[quote=mlgone]Allright people I realize that ML has blown it. [/quote]
I was thinking about this type of thoughyprocess last night. Has ML really blown it? (Don’t answer that) More specifically, has the ML Global Wealth Management really blown it?
I tell my clients that the order of my priorities are:
My family
My clients
My firm
I also express to them that if things go bad at ML and that they would be better off with me at someplace else rather than with me at ML, they will hear from me but I’ll be calling from someplace else. I then follow that up with, at this time, besides for big moving bonuses or higher payouts (which only go to me) and maybe not having to explain what the bad press about ML, no other place has demonstrated why my clients would be better off with me there rather than with me at ML.
Besides for the emotions that people feel with all of the bad press that ML has been getting, have things gotten worse for clients at ML?
–WM
[/quote]
I think that needing a multibillion dollar government rescue package and ultimately being acquired by a white knight is a little more than ‘bad press’ for clients. Once BAC starts(continues) taking apart the management infrastructure that was Merrill, it will get worse.
curious why you think it will get worse? From my seat ML had to be rescued and was not transparent about the condition of the company… So, if the same ML managers are run out of town that ran the company into the ground how can it get worse?
Define worse for me? 2 CEO’s gone - no expense managment – and a 15B loss in the 4th quarter … I guess BAC caused that?
I think that needing a multibillion dollar government rescue package and ultimately being acquired by a white knight is a little more than ‘bad press’ for clients. Once BAC starts(continues) taking apart the management infrastructure that was Merrill, it will get worse.
I don’t see how the rescue package is bad for clients other than the fact that it’s being paid with using their tax dollars.
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I’m keeping a close eye on changes to the management infrastructure. So far there has been little/none that will affect the client.
Yes, I drank a bit of the kool aid, but isn’t it a high probability that having access to BoA’s resources will be an additional benefit for ML clients?
So far, the only clients that have been negatively affected are the small ones that we don’t get paid on.
--WM
Yes, I drank a bit of the kool aid, but isn’t it a high probability that having access to BoA’s resources will be an additional benefit for ML clients?
--WM
[/quote] BoA's resources??? I moved from ML to BAC... you are in for a downside shock.That is certainly not what is "usual." Far from it. Sounds like you either lost half your book in a move and want to think that is typical, or perhpas just a wild guess. Either way, it is far from "usual."Usually people can bring about 50% of the book.
[quote=HymanRoth]
I think that needing a multibillion dollar government rescue package and ultimately being acquired by a white knight is a little more than ‘bad press’ for clients. Once BAC starts(continues) taking apart the management infrastructure that was Merrill, it will get worse.
I don’t see how the rescue package is bad for clients other than the fact that it’s being paid with using their tax dollars.
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I’m keeping a close eye on changes to the management infrastructure. So far there has been little/none that will affect the client.
Yes, I drank a bit of the kool aid, but isn’t it a high probability that having access to BoA’s resources will be an additional benefit for ML clients?
So far, the only clients that have been negatively affected are the small ones that we don’t get paid on.
--WM
[/quote] So if someone brings in $90K and you put it in A share mutual funds, you don't get paid at all?That’s correct. And POA/PMDs tend to have more of these sub-100k clients as we’re starting out in the business, so raising the payout bar from 50k to 100k was disproportionately aimed at us.
Just before leaving ML, I had a new client open a 60k bond portfolio, just to dip his toe in the water with another firm. He has another 900k in investable assets at MS (with a broker he’s gotten burned by a few times).
I’m glad to say that’s a client (and pipeline) I’ll be taking with me to my new firm.
Having ML on your resume is still a good pedigree. If you’re passionate about the business, I encourage all former POA/PMDs to knock on every firms door before giving up and leaving the industry.
Good luck!
[quote=HymanRoth]
I think that needing a multibillion dollar government rescue package and ultimately being acquired by a white knight is a little more than ‘bad press’ for clients. Once BAC starts(continues) taking apart the management infrastructure that was Merrill, it will get worse.
I don’t see how the rescue package is bad for clients other than the fact that it’s being paid with using their tax dollars.
I’m keeping a close eye on changes to the management infrastructure. So far there has been little/none that will affect the client.
Yes, I drank a bit of the kool aid, but isn’t it a high probability that having access to BoA’s resources will be an additional benefit for ML clients?
So far, the only clients that have been negatively affected are the small ones that we don’t get paid on.
--WM
[/quote]Well...the way I see it you own a business and there are many firms out there competing for your business. Why deal with one that is now tainted(for a long while until folks forget)?
Personally, I can't wait until my next meeting with a prospect when they pull out Merrill statements...especially if they are rightward leaning in their political views.
"Gee Mister Jones, doesn't it bother you a bit that you lost all this money with Merill and your financial advisor was paid a bonus with your tax money? Sign here."
Pretty funny and accurate comment from Tom Brown:
B OF A FINDS YET ANOTHER WAY TO NOT ENDEAR ITSELF TO THE MERRILL BROKERS IT JUST ACQUIRED It’s really not very hard to keep retail stock brokers happy. Just follow these three simple rules: 1) Pay them well, 2) bother them as little as possible, and 3) occasionally treat them like big shots. I understand that Bank of America, which has received not one but two capital infusions from the federal government, might be reluctant to spend money on anything that even remotely looks like a boondoggle. But the company’s decision yesterday to no longer treat its top producers to lavish sales trips is a clear violation of Rule 3, above. Bad, bad idea. . . . http://www.bankstocks.com/WebLog.aspx?ArticleID=5642&ArticleTypeID=5#5642