WFA's Ludeman's Parting View, You are lazy!
Just published is an Danny Ludeman interview On Wall Street that confirms the view of WFA. They envy not MS , Merrill, or UBS, but Fidelity and Schwab. In addition, they not only envy the model that is most anti-FA, but they talked about the Key FA problem. No it is not that FAs are moving to fee-based to slowly or resisting, but that they created an intentional problem from fee based success, THE LAZY FA. Yes, you heard me right the FA that has successfully transitioned to fee based now does not have to work so hard like he did as a transactional FA. What a problem!
WFA as recently stated by bank wanna be and new CEO WFA has three main goals . 1.) Look out for client (account fees, minimums, call centers, etc. don’t count!). 2.) Meet WFAs “earnings expectations” (please read. We will be cutting your compensation as we have every year in the past and going forward. This is how we manage earnings, and it has worked so far. FA count is declining but fee based revenue is up!) 3.) Protect WF reputation.
FAs if you are seriously considering WFA call an existing WFA FA and get the “real” proof. Also, WFA FAs get ready for micromanagement that forces you to prospect and tells you when to call. Remember they want more Regions not less. Coaching and compensation cuts is the new deal.
See Ludeman article here: http://www.onwallstreet.com/ows_issues/23_11/fee-only-makes-advisors-more-leisurely-2687001-1.html