Where are people going
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Talked to a friend yesterday who is leaving the industry after 6 years “sick of begging people for money” so instead he is looking in the corporate world for a desk job (terrible timing)…
So where else are people going? Didn't want to talk about EDJ anymoreGood, I was thinking that went downhill awful fast. Your Ed J guy has to wake up before it’s too late. He needs to have a talk with his clients along the lines of “since I have made the move, I now have access to a broader platform of investments that might be better for your situation.” “I think we should talk about how an account that charges a flat fee might work better for you.” The problem is he needs to realize it first.
That's actually one of the reasons I left Jones, no fee-based platform. The friends I still have there are having a hard time moving clients into it because they are still brain washed about fees. They need to lower the minimum, it would increase the health of the firm for sure.I have another friend who was with Jones for 5 years… and now has been indy for about 6 and still does the same stuff (add in EIAs and REITs) but still American,VK,FT funds A shares and nothing else…
It makes no sense to move if you are going to do business the same way.. I left because I saw that I would be chasing new money for the rest of my life vs indy i can build a fee-based book with 15-20 million and call it a day..I’ve seen people go from Jones to mutual fund wholesaling. Ive also seen some with legal backgrounds go from Jones to compliance in various capacities.
tpspygame,
I disagree. If you give the clients the option of which is better for them, you will do a great mix of upfront, deferred and ongoing fees. Again, sometimes the advisors think they know what is best for the client, but the majority of the transfers I'm getting have to do with not knowing what their invested in and how the fees work. I like all ways of getting paid. I let the clients pick and then they have ownership and makes it hard for them to bitch about. I've always said you can become very wealthy in the Indy model with multiple ways of doing business. Yes, if your lazy and don't want to chase money, then fees would work for you, maybe not your clients. IF you want to do A shares only, and keep 90% of fees...not a bad gig in my mind. This week I've placed A share business, stocks, L share annuity, Fixed annuity and some bonds and cd's. A transfer coming in of 357k from Smith Barney, fee based and will stay fee based, because that is what the client wants. His broker is moving to Wach/Wells and he's ready to be closer to home. I think you put yourself and your business in great risk by setting an asset goal based on fees and then stop looking for new money, but THAT is the great thing about INDY, do it your way. Good luck...It resonates with clients to be able look them in the eye and tell them you will share in their pain if the account declines in value. Fee based may not be best for everyone and all situations, but it removes many conflicts of interest and puts you and the client on the same side of the table.
A friend called today that is with Wachovia and he is leaving and going to work in medical sales. He was doing about 550k but said his income was down about 60% with a lot of clients selling stocks and buying up forclosures for speculation or just going cash.
Yeah, I have had people liquidate managed accts in order to buy real estate. What can you do? They got beat down by 35% and after several conversations expressing their concerns about losses and lack of performance, you have to cut them loose. Their time horizons thrown out the window and then you have to consider the liability on us if you can keep them in and they continue to see declines. Unfortunately, I think these folks will fare even worse by specing on real estate now. Medical sales…interesting. Is it medical equip? Pharma? Did your friend work in ISG or PCG?
There are a lot of foreclosed homes that can now be rented profitably thanks to the decline in the RE market. Put together a portfolio of houses, reinvest the income, capture some tax benes along the way. RE recovery and then a sale at a nice profit would be icing on the cake.
In my neck of the woods, I am seeing beachfront property down 60% in 18mos. With a modest downpayment these houses can be rented profitably which was not the case at the top of the market. Any sort of RE recovery will give you a very nice total return that will likely beat the stock market over the next 5-10y. The key is having cash or access to credit on favorable terms…not many who can say that they have either.
Wait a minute, they are upset about losing money in their brokerage accounts, so they are taking the money out to buy real estate because OTHER people have lost money in real estate? Do you have real estate investors cashing out their holdings to invest in the stock market because they lost so much in real estate? what a frustrating business this is.Yeah, I have had people liquidate managed accts in order to buy real estate. What can you do? They got beat down by 35% and after several conversations expressing their concerns about losses and lack of performance, you have to cut them loose. Their time horizons thrown out the window and then you have to consider the liability on us if you can keep them in and they continue to see declines
In my area my house value is about 15% off the high, I have it for sale and if it sells I am going to rent and put those funds in the market. People like real estate just because they don't see the value go up and down on paper. I will take stocks any day.
[quote=JoeNatlanta]where is beachfront property down 60%?[/quote]
Anywhere that the Swiss were buying 2-3 years ago.
How did they ever get so rich in the first place?
Classic... one of the funniest posts yet..(unless you live there)new orleans in 2005
"So where else are people going?"
This is from the horse’s butt, so to speak. I’m one of those exiting the biz. I was a newbie in a small city, worked for You’ve Been Screwed and it was hopeless. 2 years and out. Departure was not conducted gracefully. Dignity was roughly equivalent to be tossed off the 4th floor veranda.
Going back to whence I came, which was the computer/tech biz, in operations management or product marketing. That was always Plan B. C’est la vie.
Very thankful I can do something else, and very sorry for the guys who can’t and got unfairly kicked out of their gigs. Also thankful for the skills I acquired. Unless I land a really lucrative gig, I’m gonna be my own FA for quite a while. Accounts went to discount brokerage. Platform much easier to use than You’ve Been Screwed. And contrary to what BOM told me, I know what I’m doing!
[quote=campyhub]"So where else are people going?"
This is from the horse’s butt, so to speak. I’m one of those exiting the biz. I was a newbie in a small city, worked for You’ve Been Screwed and it was hopeless. 2 years and out. Departure was not conducted gracefully. Dignity was roughly equivalent to be tossed off the 4th floor veranda.
Going back to whence I came, which was the computer/tech biz, in operations management or product marketing. That was always Plan B. C’est la vie.
Very thankful I can do something else, and very sorry for the guys who can’t and got unfairly kicked out of their gigs. Also thankful for the skills I acquired. Unless I land a really lucrative gig, I’m gonna be my own FA for quite a while. Accounts went to discount brokerage. Platform much easier to use than You’ve Been Screwed. And contrary to what BOM told me, I know what I’m doing![/quote]
If you want to stay in the business, you could go see your area Edward Jones regional leader and talk your way into getting an office with some assets and a first-year salary. (NOT trying to start an EJ flaming war here.)