Ameriprise Financial

102 replies [Last post]
gotstabnoel's picture
Offline
Joined: 2007-07-10

Hey guys, this would be my first post for the site.  I've done some searching and reading and what not and I've been getting a lot of negative or at least some disheartening news that AMP is the worst firm to get into.  I recently graduated from college with a B.A in Finance and International Business.  I do realize this is a sales job, and MAKING your market is the key.  I'm really concerned on helping clients and providing some great financial advice. 
From my understanding, other major firms such as Merrill, Morgan Stanley, etc etc, are great firms to work for but each firm requires and demands their advisors to meet goals / quotas.  I realize this is for every firm, but I mean, I was offered a sponsorship through Ameriprise, so I took it. 
I guess what I'm trying to ask is, with all these comments im reading is, should i just take my series 7, 66, and life with ameriprise sponsorship and jump ship when i get my license?  Currently I work for a bank, they do not offer sponsorship, so I'm thinking i just fork over the money I've paid for the series 7,66, and life exam and classes and just lose it to reapply at the bank I work at. 
If not, would it be good for me to stick with Ameriprise and just grind it out and find out formyself?  I love my personal life, and Im hoping to buy a home and get married soon with the love of my life.  Putting 60/70 hours a week i know will put a strain on me and my life, any input!?  I just turned in my check for ameriprise but my windows for sponosrhip hasn't been opened.  What should i do!?

troll's picture
Offline
Joined: 2004-11-29

gotstabnoel wrote:
If not, would it be good for me to stick with Ameriprise and just grind it out and find out formyself?  I love my personal life, and Im hoping to buy a home and get married soon with the love of my life.  Putting 60/70 hours a week i know will put a strain on me and my life, any input!?  I just turned in my check for ameriprise but my windows for sponosrhip hasn't been opened.  What should i do!?

Get a job working for the post office.

troll's picture
Offline
Joined: 2004-11-29

gotstabnoel wrote:
Hey guys, this would be my first post for the site.  I've done some searching and reading and what not and I've been getting a lot of negative or at least some disheartening news that AMP is the worst firm to get into.  I recently graduated from college with a B.A in Finance and International Business.  I do realize this is a sales job, and MAKING your market is the key.  I'm really concerned on helping clients and providing some great financial advice. 
From my understanding, other major firms such as Merrill, Morgan Stanley, etc etc, are great firms to work for but each firm requires and demands their advisors to meet goals / quotas.  I realize this is for every firm, but I mean, I was offered a sponsorship through Ameriprise, so I took it. 
I guess what I'm trying to ask is, with all these comments im reading is, should i just take my series 7, 66, and life with ameriprise sponsorship and jump ship when i get my license?  Currently I work for a bank, they do not offer sponsorship, so I'm thinking i just fork over the money I've paid for the series 7,66, and life exam and classes and just lose it to reapply at the bank I work at. 
If not, would it be good for me to stick with Ameriprise and just grind it out and find out formyself?  I love my personal life, and Im hoping to buy a home and get married soon with the love of my life.  Putting 60/70 hours a week i know will put a strain on me and my life, any input!?  I just turned in my check for ameriprise but my windows for sponosrhip hasn't been opened.  What should i do!?

 
First of all. Great first post.  Compared to the other college grad that posted today, you are by far more intelligent.
What concerns me about your question is that you fear working 60-70 hour weeks, which is essential to being a success in this business.  You have to have a 'do whatever it takes attitude' to make it.  Ask yourself why you want to do this job and what you are willing to do.

gotstabnoel's picture
Offline
Joined: 2007-07-10

Bobby Hull wrote:gotstabnoel wrote:
Hey guys, this would be my first post for the site.  I've done some searching and reading and what not and I've been getting a lot of negative or at least some disheartening news that AMP is the worst firm to get into.  I recently graduated from college with a B.A in Finance and International Business.  I do realize this is a sales job, and MAKING your market is the key.  I'm really concerned on helping clients and providing some great financial advice. 
From my understanding, other major firms such as Merrill, Morgan Stanley, etc etc, are great firms to work for but each firm requires and demands their advisors to meet goals / quotas.  I realize this is for every firm, but I mean, I was offered a sponsorship through Ameriprise, so I took it. 
I guess what I'm trying to ask is, with all these comments im reading is, should i just take my series 7, 66, and life with ameriprise sponsorship and jump ship when i get my license?  Currently I work for a bank, they do not offer sponsorship, so I'm thinking i just fork over the money I've paid for the series 7,66, and life exam and classes and just lose it to reapply at the bank I work at. 
If not, would it be good for me to stick with Ameriprise and just grind it out and find out formyself?  I love my personal life, and Im hoping to buy a home and get married soon with the love of my life.  Putting 60/70 hours a week i know will put a strain on me and my life, any input!?  I just turned in my check for ameriprise but my windows for sponosrhip hasn't been opened.  What should i do!?

Another dumbass asks for advice AFTER he's made a decision.

 
wow amazing, talk about getting help.  First and foremost, if you actually read my post, I am currently in my sponsorship phase.  It's not an OFFER for a position.  Secondy, my question was whether or not going to Ameriprise for training versus taking my exams and passing and going somewhere else for training and what not.  Another dumbass asking for advice, i wonder how you treat your clientel if you even have any.  Step up chump and be helpful instead of a post whore.
As for Ferris, thanks for the input, I don't mind the hours, its just the opinions of numerous people about ameriprise.  Regardless of what firm I go to, doing the work isn't that much of a worry.  I'm more concerned of opinions such as, "Worry about selling friends and family crap insurance and low ball products.  Worry about forcing family and friends to buy products". 

ExPropTrader's picture
Offline
Joined: 2006-11-19

If you're serious and can put in the 60-70 hour weeks there are much better firms.  Starting with AMP to get licenses and then jump ship is a bad idea if you want to get a job at another firm.  It's better to start where you want to be for 3-5 years and then reevaluate.
Almost every firm out there will encouarage you to start out with your "warm" market (friends and family), so AMP is no different there.  The biggest difference is at most other firms the products will have more value than the VA, VUL's, and crappy funds you'll sell at AMP.
The bank route is good for some that don't like/can't do their own prospecting but the average wirehouse or insurance agent will make much more $$$ for doing some prospecting.

Cardizem's picture
Offline
Joined: 2007-07-11

Heres my take, and I think you've already realized that--Ameriprise Financial is a joke. Its a laughing stock in the financial world. www.amexsux.com Check out that website. You've already technically become hired by Ameriprise since you are taking your exams through them. It will show up on your file that you did work for them, however short it was. Take my advice, as well as everyone elses--if you're serious about the industry and you want to make a living, and if this is truly for you, etc. I highly recommend finding another firm to work for. If you're into pushing insurance, and phony products suckering people into choosing it, then go for it. I'm not sure if I understood you, if you have already signed on with Ameriprise and forked over the money to take the exams or not, but if you haven't made that mistake, go else where. Start looking at the bigger wirehouse firms, MS, ML, UBS, Smith Barney, etc.. It won't be easier at those firms, but a) they will sponsor you and pay for your training to study and pay for your exams b) these are firm that you want to work for, you will be a much more experienced and well rounded candidate coming out of there. I'm not in anyway pushing those companies, but I sincerely advise you to step away from Ameriprise Financial. They're ploy is to pull you in, have you pay the 1400 dollars for the exams, then work you to death without any compensation. Review that website I listed above, there are individuals who have worked there and their experiences are outlined well. If you feel you fit in there, go for it. As far as what you mentioned with your future plans, getting married, buying a house, etc. That’s great, I'm truly happy for you. There are some who have made it with a wife and kids and just starting out. Perhaps, it gives them more motivation to try for not only themselves but their family, understanding failure is not an option. What you do with your personal life is your own decision, and please do not let anyone dictate what you choose for the future. Do however, understand and accept, that this industry, and occupation is physically and mentally taxing. It will and does require 60-80 hours a week, generally not leaving time for socializing, etc. This isn't to say that this industry sucks. There can be a lot of fun in it as well. Doing activities that you enjoy with other individuals while at the same time “working” is one of the greatest parts about this job. But, the first five years will be taxing, not only on yourself, but your relationships and friendships. If you are lucky enough, your significant other will understand and support you till the end. <?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
 
If you’re serious about all this, jump in with both feet, and don’t look back. It’s a fun ride, but it certainly isn’t easy.

Big Taco's picture
Offline
Joined: 2006-11-16

I am an Ameriprise franchisee.  I like the culture and platform.  sounds like you're starting out on the "trainee" platform, called P1.  If you want a career in this business, stop talking about "enjoying your personal life".  you won't have one for 3 years.  see if you can hack it, then start your own office, or franchise on the P2 platform.  you'll own your business and client base, unlike many shops out there, and can sell it someday.  I don't like P1, but you gotta start somewhere, and have a long-term vision.
I read other posts (above) about being "forced" to sell VUL, VA, Mutual Funds.  It's all BS.  Sell whatever is appropriate.  I can sell from a variety of insurance companies, funds, etfs, whatever.  Before the Wach merger, I believe Ameriprise was the 4th largest B/D in the country, so they have a diverse platform of investment offerings.  The only area an Ameriprise Financail advisor is captive is annuities.  But the Riversource variable annuities are less expensive than over 90% of the industry's products (as rated by Morningstar).  You also don't have to sell the in-house mutual funds, nor do you get any extra compensation for doing so.  They're not a substantial part of my fund business, as I don't want to seem like I have a conflict of interest.  But, since the spinoff from AmEx, there's been a lot more of our revenues pumping back into our systems and departments, including hiring good fund management.  Barron's ranked us at #3 for 2006 of 50 fund companies.
Also, you have to get your Series 66 to work at Ameriprise.  This broadens your investment product and service offerings, as you can charge for your advice, set up wrap accounts, etc.  From my understanding, many wirehouses and other firms don't want the responsibility of being a B/D and an RIA.  I like the asset based fee platform, and it's most of my investment business.
I've noticed that many of the folks that call Ameriprise the "worst" firm (or whatever adjective they use) failed out there, whether they'll admit it or not.  I'm sure this will start some flaming... eh. 
There are other reasons I like Ameriprise, and I have done my due dilligence over the years.  There's an indy platform that I've always liked, but not enough to jump ship.  And ever since the '05 spinoff, this place has gotten much better.  We don't just hand all of our profit to AmEx anymore.  The technology & infrastructure upgrades and platform broadening, leadership and niche identification has been unprecedented.
It doesn't matter to me whether or not you get on this ship or another.  But if you have questions, PM me.

GolFA's picture
Offline
Joined: 2007-06-19

Ameriprise Financial is a joke. Its a laughing stock in the financial world.
It seems like you have a hard-on for the company. Are you qualified to broadly condemn others who would train you, like Jones, or the "new" A.G.,  and should we ask your opinion about some of the smaller independent broker dealers, too?
Do you run that hate web site or are you just a frequent flier there?
Your appparent ignorance is what helps drive the b/d " change industry ", and helps poison the water for trainees who might otherwise be left out of our inddustry. Consider another mental path to help elevate your own self esteem, if you failed on one path.

Vin Diesel's picture
Offline
Joined: 2007-04-18

don't work for amerijoke
go to ubs,ml, ms, or a large bank

vbrainy's picture
Offline
Joined: 2006-07-26

Ameriprise does not deserve any bit of your time if you are serious about this field.
Why not be a bank financial advisor? 

Big Taco's picture
Offline
Joined: 2006-11-16

Check out the payouts at a bank, ml, ms, ubs.  Then consider whether you want yourself, or your firm to own your client base.

DJRoss's picture
Offline
Joined: 2007-06-22

gotstabnoel wrote:Hey guys, this would be my first post for the site.  I've done some searching and reading and what not and I've been getting a lot of negative or at least some disheartening news that AMP is the worst firm to get into.  I recently graduated from college with a B.A in Finance and International Business.  I do realize this is a sales job, and MAKING your market is the key.  I'm really concerned on helping clients and providing some great financial advice. 
From my understanding, other major firms such as Merrill, Morgan Stanley, etc etc, are great firms to work for but each firm requires and demands their advisors to meet goals / quotas.  I realize this is for every firm, but I mean, I was offered a sponsorship through Ameriprise, so I took it. 
I guess what I'm trying to ask is, with all these comments im reading is, should i just take my series 7, 66, and life with ameriprise sponsorship and jump ship when i get my license?  Currently I work for a bank, they do not offer sponsorship, so I'm thinking i just fork over the money I've paid for the series 7,66, and life exam and classes and just lose it to reapply at the bank I work at. 
If not, would it be good for me to stick with Ameriprise and just grind it out and find out formyself?  I love my personal life, and Im hoping to buy a home and get married soon with the love of my life.  Putting 60/70 hours a week i know will put a strain on me and my life, any input!?  I just turned in my check for ameriprise but my windows for sponosrhip hasn't been opened.  What should i do!? Guys who start out in this business straight from college have greater challenges than those who come into this as a second career. When I interviewed with AGE a few weeks ago, I was actually asked how old I was over the phone. The response after I said 39, was excellent and that this particular office was not interested in anyone just out of college.Seeing that I am just starting out (in the study for licensing stage) I see the following advantages someone in my position would have over someone in yours.1. As mentioned before age. A little gray hair goes a long way in regards to credibility. Yes there are many successful younger FA's out there, but for those retiring over the next 15 years, a 22-24 year old college graduate doesn't normally strike confidence.2. Applied Experience. This is a big one. Having 10-20 years of work experience under your belt in various sectors allows for much of that theoretical training you have recently received in college to sink into your long term memory. It is one thing to think wow, what a cool theory, and another to apply it in real life.3. Pondus, as you get older, go through life's challenges and what they bring, your demeanor begins to change (hopefully since there seem to be plenty of 40 year old teenagers still running around.), your ability to resonate with potential clients increases. The soft sell is more natural as you are more inclined to listen vs. tell.4. Association, one of the biggest A HA experiences I ever had was sitting in a room full of 40 somethings during a contract negotiation. I was in charge of selling the contract. When I used an analogy in my personal life concerning an experience with one of my children, it hit me just how much I had in common with everyone in that room even though they were 10 to 15 years older than me. (I got married at 21 and have several children.) We got the contract in an industry which at that time was beguiled by the dot com blood of single 20 something CEO's wearing T-shirts and jeans. 5. Economic security. I don't need this job, and in all honesty I don't have to work at least not over the next 2 years. This is often a make or break situation for many would be FA's. I turned down several offers that included a base salary because the company I went with resonated with me so clearly, that I knew this is where I would be a my best. However I have to pay for my own study materials and there is no base salary. Their premise is you either can do this or you can't (of course their compensation package is outstanding so that is in this case the trade off). 6. Network. Who you know and how you know them. At 40 you have come into contact with a lot more people than at 24, and your relationship levels with these people are often more advanced from a perspective of events and history. To be honest, I would never encourage a college grad to actually jump into the financial advisory fray. Regardless, good luck at AMP

GolFA's picture
Offline
Joined: 2007-06-19

Big Taco wrote:
Check out the payouts at a bank, ml, ms, ubs.  Then consider whether you want yourself, or your firm to own your client base.

I think the difference in payout between LPL and Ameriprise is about 5% for the midlevel producer. I guess that is the cost of branding or other franchising benefits.
Commonwealth payout would be a couple of points higher than Ameriprise.
Do you get business from the branding?

Big Taco's picture
Offline
Joined: 2006-11-16

"Do you get business from the branding?"
 
Yes, actually.  Just yesterday I met with someone (I know, sounds very convenient, but the appointment was actually set almost 2 weeks ago).  The guy called out of no where because he just moved into my area, and is with AMP, and home office referred him to me, gave him my number.  Literally a 215K account.  His advisor in the other state is not licensed in mine.  This has happened a few times, but it's really just money moving from one part of the company to my part (but as long as it's moving to me).  And I've lost a few people to moving, although I'm way up, net-net.
Another way branding has paid off is people just call after they watch a commercial sometimes.  These are usually not qualified prospects (the people with $30K in revolving debt, and a $25K annual income), but sometimes there's a gem.  Since Ameriprise started really advertising (end of '05?), I've got 2 good clients from call ins that said they got interested after seeing our advertisements.
And there've been a few people that have been good clients who called my office because a relative or friend loves thier Ameriprise advisor from wherever, and said "oh, see if there's an Ameriprise office where you live", or however the conversation went.
That's what comes to mind, I'm sure there's other examples.  So is branding important?  Yes, but I make pains to play down the AMP connection at times.  I want clients to realize that I'm the important variable in the equation, not my B/D RIA.  They do the accounting, send statements, advertise, enable me to offer financial products, and create my technology tools.  I'm the one that makes decisions for clients and knows who they are and what's important to them. 

vbrainy's picture
Offline
Joined: 2006-07-26

Big Taco wrote:
I am an Ameriprise franchisee.  I like the culture and platform.  sounds like you're starting out on the "trainee" platform, called P1.  If you want a career in this business, stop talking about "enjoying your personal life".  you won't have one for 3 years.  see if you can hack it, then start your own office, or franchise on the P2 platform.  you'll own your business and client base, unlike many shops out there, and can sell it someday.  I don't like P1, but you gotta start somewhere, and have a long-term vision.
I read other posts (above) about being "forced" to sell VUL, VA, Mutual Funds.  It's all BS.  Sell whatever is appropriate.  I can sell from a variety of insurance companies, funds, etfs, whatever.  Before the Wach merger, I believe Ameriprise was the 4th largest B/D in the country, so they have a diverse platform of investment offerings.  The only area an Ameriprise Financail advisor is captive is annuities.  But the Riversource variable annuities are less expensive than over 90% of the industry's products (as rated by Morningstar).  You also don't have to sell the in-house mutual funds, nor do you get any extra compensation for doing so.  They're not a substantial part of my fund business, as I don't want to seem like I have a conflict of interest.  But, since the spinoff from AmEx, there's been a lot more of our revenues pumping back into our systems and departments, including hiring good fund management.  Barron's ranked us at #3 for 2006 of 50 fund companies.
Also, you have to get your Series 66 to work at Ameriprise.  This broadens your investment product and service offerings, as you can charge for your advice, set up wrap accounts, etc.  From my understanding, many wirehouses and other firms don't want the responsibility of being a B/D and an RIA.  I like the asset based fee platform, and it's most of my investment business.
I've noticed that many of the folks that call Ameriprise the "worst" firm (or whatever adjective they use) failed out there, whether they'll admit it or not.  I'm sure this will start some flaming... eh. 
There are other reasons I like Ameriprise, and I have done my due dilligence over the years.  There's an indy platform that I've always liked, but not enough to jump ship.  And ever since the '05 spinoff, this place has gotten much better.  We don't just hand all of our profit to AmEx anymore.  The technology & infrastructure upgrades and platform broadening, leadership and niche identification has been unprecedented.
It doesn't matter to me whether or not you get on this ship or another.  But if you have questions, PM me.

DON'T LISTEN TO THIS PERSON, IT HAS TO BE A AMERIPRISE MOLE OR AN AMERIPRISE RECRUITER.  JUST GO TO AMEXSUX.COM AND YOU WILL GET ALL OF THE INFORMATION YOU NEED.

now_indy's picture
Offline
Joined: 2006-07-28

I would also recommend looking elsewhere. I always hear how Ameriprise guys can sell other insurance products, other mutual funds, etc.  However, almost every Ameriprise client I talk to has a RiverSource VUL and Riversource mutual funds.  And, usually the VUL premiums are giving the client heartburn. I talked with a guy this morning who wants to come over to me, and he recently got ANOTHER "send in your payment or your VUL will explode" letter, but we both hate that he will take a 23% surrender fee to get out!
Don't get me started on the stupid "Stock Market Certificates"
Oh yeah, this same client was convinced by his Ameriprise guy to convert his IRA to a ROTH last year. Not a bad idea, BUT they liquidated the Riversource funds, converted the IRA to a ROTH, and REBOUGHT more Riversource funds at a full sales charge! I am not making that up. Despicable.

troll's picture
Offline
Joined: 2004-11-29

vbrainy wrote:
DON'T LISTEN TO THIS PERSON, IT HAS TO BE A AMERIPRISE MOLE OR AN AMERIPRISE RECRUITER.  JUST GO TO AMEXSUX.COM AND YOU WILL GET ALL OF THE INFORMATION YOU NEED.

Ameriprise is an excellent place to start if you're young and need to gather experience.
The AMEXSUX website was set up by malcontents, and it is never a good idea to pay attention to malcontents.

GolFA's picture
Offline
Joined: 2007-06-19

So is branding important?  Yes, but I make pains to play down the AMP connection at times.  I want clients to realize that I'm the important variable in the equation, not my B/D RIA.
Yeah, I think a lot of people with money want to see a brand, it is really an extension of the idea that some folks may not want to do business with an RIA who is just regulated by the state, or even the feds but is a small name.
And I like how Jones is branded and close to the market. I'm talking about from Jones the company point of view, not the occasional disenfranchised Jones rep who is wanting to switch companies.
And in the case of Ameriprise and Jones, maybe you are talking about effective stragies for going after the "mass market". I would think advisors would be interested in just making money and having the lifestyle that they want - if you want to wear a suit and work downtown and chase CEOs, by all means go work for ML, MS, UBS.
So much of it is perception. Branding helps there too, of course, Ameriprise guys are branded franchise owners with rights and Jones guys have their own secure thing and wire house guys " own their book".
But I like branding, it will be interesting if LPL ever decides to brand, probably not as the strategy is to give the money to the advisors in the form of a slightly higher payout.
 
 

GolFA's picture
Offline
Joined: 2007-06-19

DON'T LISTEN TO THIS PERSON, IT HAS TO BE A AMERIPRISE MOLE OR AN AMERIPRISE RECRUITER.  JUST GO TO AMEXSUX.COM AND YOU WILL GET ALL OF THE INFORMATION YOU NEED.
Where do you get vbrainy out to this type of muddled thinking? You have demonstrated nothing. Prove your point or consider changing your screen name. My impression of the hate site is it's just a big ego trip for a lot of people, the losers that hang there and especially the ego tripping purveyor who gets all the attention.
You're talking about a Fortune 500 company with a lot of money under management that brings a lot of new advisors into this industry through expensive training. Substantiate your claim, if you can.

GolFA's picture
Offline
Joined: 2007-06-19

now_indy wrote:
I would also recommend looking elsewhere. I always hear how Ameriprise guys can sell other insurance products, other mutual funds, etc.  However, almost every Ameriprise client I talk to has a RiverSource VUL and Riversource mutual funds.  And, usually the VUL premiums are giving the client heartburn. I talked with a guy this morning who wants to come over to me, and he recently got ANOTHER "send in your payment or your VUL will explode" letter, but we both hate that he will take a 23% surrender fee to get out!
Don't get me started on the stupid "Stock Market Certificates"
Oh yeah, this same client was convinced by his Ameriprise guy to convert his IRA to a ROTH last year. Not a bad idea, BUT they liquidated the Riversource funds, converted the IRA to a ROTH, and REBOUGHT more Riversource funds at a full sales charge! I am not making that up. Despicable.

In my opinion, this is interesting. In my early career, I sold industrial propriety products. We positioned ourselves by providing a better product but charged more and gave a lot of personal attention and service, including special engineering support and so on. There were always potential customers who never " got it ". A lot of them were never that successful in their business, or totally focused on costs and successful in that niche, at the expense of other opportunities.
So is the real problem proprietary products, or the fact that trainees are selling them? Everyone can't start out indy. One interest of mine is encouraging young people to get a start in the biz.
Jones gets a bad rap for a lot of reasons. Guys figure out how to bail after 3 years and make more money, never getting to the " sweet spot ".  They signed up for the long term, got trained, and then found something better. More power to them, this is the fuel for the entire Indy industry.
Making a virtue out of that transition, or somehow calling other people stupid, I think this is an example of how we as colleagues get egotistical and turn on ourselves. It may be the nature of those who spend time blogging, myself included. Just an observation.

GolFA's picture
Offline
Joined: 2007-06-19

Oh yeah, this same client was convinced by his Ameriprise guy to convert his IRA to a ROTH last year. Not a bad idea, BUT they liquidated the Riversource funds, converted the IRA to a ROTH, and REBOUGHT more Riversource funds at a full sales charge! I am not making that up. Despicable.
In my opinion, this really weakens your argument. I know an RIA who pulled all his clients into cash in 2001 and left it there for four years. A Merrill guy was hosing his client for about 5% a year in fees by churning. A gal at Ameriprise was jamming annuities at IRAs and there was a big lawsuit. Over at Jones, and advisor never called her client for four years after 9/11. An LPL guy I know is a snake.  Waddell - Lincoln? Never had a complaint.

Big Taco's picture
Offline
Joined: 2006-11-16

vbrainy wrote:
DON'T LISTEN TO THIS PERSON, IT HAS TO BE A AMERIPRISE MOLE OR AN AMERIPRISE RECRUITER.  JUST GO TO AMEXSUX.COM AND YOU WILL GET ALL OF THE INFORMATION YOU NEED.

I try not to resort to ad hominem, but you're an idiot. 
Good job on not refuting anything I wrote.   
It's very obvious to me that you're a failed Ameriprise advisor who got another job in the industry (it's not hard if you have a series 7 and insurance license), and now you love to blame your failure on a previous employer.  Good luck with that.
And no, I'm not a "mole" or "recruiter".  I'm a P2 advisor.
"amexsux" will teach you "everything you need to know"?  Yeah, look at how you turned out.  

Charlie Brown's picture
Offline
Joined: 2007-07-11

I have personal experience with Ameriprise, I worked there for 7 years. There is a significant difference between P1 & P2 guys. P2 guys are fairly independent although they are induced to sell a number of financial plans ($450+) in order to meet their score card numbers. 
If you're not P2 don't be fooled, when I worked there you sold everyone a financial plan for $450+ followed by a canned presentation  for VUL, front load funds, and idiotic "certificates" for their cash reserves. Everybody pretty much received the same speel and as a P1 you either did it or you were out within a year.

now_indy's picture
Offline
Joined: 2006-07-28

GolFA wrote:
Oh yeah, this same client was convinced by his Ameriprise guy to convert his IRA to a ROTH last year. Not a bad idea, BUT they liquidated the Riversource funds, converted the IRA to a ROTH, and REBOUGHT more Riversource funds at a full sales charge! I am not making that up. Despicable.
In my opinion, this really weakens your argument. I know an RIA who pulled all his clients into cash in 2001 and left it there for four years. A Merrill guy was hosing his client for about 5% a year in fees by churning. A gal at Ameriprise was jamming annuities at IRAs and there was a big lawsuit. Over at Jones, and advisor never called her client for four years after 9/11. An LPL guy I know is a snake.  Waddell - Lincoln? Never had a complaint.

They did the sell, the move, and the re-buy within a week. It wasn't like he went to cash as a defensive move.  I actuall saw an Ameriprise conversion form that made the client check the "don't sell my assets" box, or all of their assets would be sold before the conversion. I think they have changed that now, but that is just crazy.
As for your propietary comment, Jones doesn't have any proprietary products. If you can hold it at Jones, you can pretty much hold it somehwere else. So, I would recommend starting at Jones versus Amex. At least if you do leave, you can move your clients without having to liquidate everything.

Big Taco's picture
Offline
Joined: 2006-11-16

Charlie Brown wrote:
I have personal experience with Ameriprise, I worked there for 7 years. There is a significant difference between P1 & P2 guys. P2 guys are fairly independent although they are induced to sell a number of financial plans ($450+) in order to meet their score card numbers. 
If you're not P2 don't be fooled, when I worked there you sold everyone a financial plan for $450+ followed by a canned presentation  for VUL, front load funds, and idiotic "certificates" for their cash reserves. Everybody pretty much received the same speel and as a P1 you either did it or you were out within a year.

I've said it before on this site, I don't like P1, and feel that any blemishes on the Ameriprise brand comes mostly from that platform.  That said, what national brokerage can you start at and not be pushed to sell!, sell!, sell! ?  Seriously, what garbage gets sold at a bank, wirehouse, indy, insurance company, etc. just because someone is a trainee who needs to keep his job?  I don't like it at all, but it's not an AMP specific issue.
What's good that I've seen so far, is that AMP has been pushing its Associate Financial Advisor program, which pairs new advisors with established P2s as an apprentice type relationship.  Then they can take over the part of the book that the P2 doesn't want, and not have the conflict of interest as much to build a book from scratch and not starve to death in the process.
All of us who've been around for a little while see the statements from other firms and think: "what a ripoff".  Maybe.  Maybe not.  Usually, if you're looking at statements from other firms, something's not being done right in the first place.  Time to point out any flaws with a cert, or mutual fund, REIT, insurance policy you can think of (I know I do). 
Time to create urgency to move assets.  'Sign here, that AMP guy's no good'... after a while, you may start believing that local Smith Barney or Ed Jones, or the life insurance guy are just out for themselves, or are incompetent.  That's fine, but probably not true.  In some cases, you could even be screwing up an appropriate strategy, because you don't really understand it as an outsider looking in.

Big Taco's picture
Offline
Joined: 2006-11-16

joedabrkr wrote: Big Taco wrote:
I try not to resort to ad hominem, but you're an idiot. 
Good job on not refuting anything I wrote.   
Go easy on him Taco.  He's too stupid to understand that there is a HUGE diff between P1 and P2(indy) advisers.  I'm no amex fan, but I certainly realize the distinction.
Point taken.

GolFA's picture
Offline
Joined: 2007-06-19

Good points. I realize Jones or any start is tough, heck, I'm recruiting Jones reps. But they seem to be a fair outfit, and should be respected.
I would hope compliance would ensure an in-kind transfer on A share conversions, what client would refuse the option.
The thing that interests me about Ameriprise is, they staunchly defend the right to sell annuities, annuities inside IRAs, VUL, plans - there must be lobbyists in DC, and a ton of disclosure.
While everyone needs to make up their own mind, don't think that strategy should be condemned per se.
Here, Bobby represents a kind of straight viewpoint, a baseline to any hypocracy that exist in terms of how we all get paid or even our planning strategies - we may not agree, but we are all professionals.
In other words, if Bobby were to turn his nose up at all Ameriprise reps, or even Ameriprise as a company, because they sell proprietary products but he offers a lot of choice, and then Allreit, who is not even licensed to sell insurance, comes in and makes a moral argument about how only RIAs are objective, and Bobby is a schmuck, and so on, really all just based on some kind of moral relativism, well, I think we degrade ourselves as professionals.
We can all hold our viewpoints and still respect each other.
I had a religious studies professor in college who taught many religions, but said you ultimately had to affirm yours above all others to find meaning. But in order to find meaning, you have to respect teh other viewpoints.  
I think Napolean Hill would call that transformation, and what it can do for our businesses is exciting.
Not trying to sound heavy, just trying to communicate my conclusion after a lot of soul searching about where I want to take my business.
I don't think anyone has to give up their moral or professional beliefs, rather, in this case, entertain the notion that with proper disclosure and oversight of reps, a company has the right to manufacture proprietary products and promote those products in an ethical manner.
Not putting your clients into proprietary products so you can be free to move your book just sounds like good business, so maybe the guy at the head of the string here should have joined Jones. But he should be very careful to think for himself about the reality of the ethics of the right to sell proprietary products in any industry, and especially this one, since so much of the so-called altruistic concern for getting out of certain products or having choices is really about getting paid. Allreit is the best example here regarding someone who is selling  that little "moral crusade."
As if the media isn't selling us a big " no load " and " effect of fees " story that is a big disconnect with how we all apply broad finanical planning principals and experience to create wealth for our clients, many of whom would otherwise not be winners in the race for financial security.
And I get the impression that Big Taco is a respectable fellow. Since he is respectable, we should at least test the idea that his affiliate is fundamentally respectable, since it is subject to the same scutiny and regulation of all broker dealers. Not saying to overlook history, but who amongst large broker dealers shall cast the first stone?

GolFA's picture
Offline
Joined: 2007-06-19

Bobby Hull wrote:GolFA wrote:
Oh yeah, this same client was convinced by his Ameriprise guy to convert his IRA to a ROTH last year. Not a bad idea, BUT they liquidated the Riversource funds, converted the IRA to a ROTH, and REBOUGHT more Riversource funds at a full sales charge! I am not making that up. Despicable.
In my opinion, this really weakens your argument. I know an RIA who pulled all his clients into cash in 2001 and left it there for four years. A Merrill guy was hosing his client for about 5% a year in fees by churning. A gal at Ameriprise was jamming annuities at IRAs and there was a big lawsuit. Over at Jones, and advisor never called her client for four years after 9/11. An LPL guy I know is a snake.  Waddell - Lincoln? Never had a complaint.

Why does it make you so angry that people put annuities in IRA's? Do you advise your clients not to insure their homes, cars, and lives? More people have lost money in the stock market than have lost their homes due to a catastrophy. How do you reconcile this, asshole?

Bobby, if review any posting where I mentioned you, I respected you.
So I take your name calling to be in the Tony Soprano sense. Correct me if I'm wrong, and I'll just ignore you forever.
So, over time, I have move from strongly opposing the concept of annuities in IRAs, to not condemning those who do.
By the way, in an earlier post you made it sound like you thought a guy was a sucker for inheriting such accounts. I don't get your thinking, but I'm still open minded about you. Please don't remove all doubt. An apology for calling me an a****** would be a good start, if you are capable. If not, I have a pretty good idea of the type of person you might be.  

troll's picture
Offline
Joined: 2004-11-29

GolFA wrote:Bobby Hull wrote:GolFA wrote:
Oh yeah, this same client was convinced by his Ameriprise guy to convert his IRA to a ROTH last year. Not a bad idea, BUT they liquidated the Riversource funds, converted the IRA to a ROTH, and REBOUGHT more Riversource funds at a full sales charge! I am not making that up. Despicable.
In my opinion, this really weakens your argument. I know an RIA who pulled all his clients into cash in 2001 and left it there for four years. A Merrill guy was hosing his client for about 5% a year in fees by churning. A gal at Ameriprise was jamming annuities at IRAs and there was a big lawsuit. Over at Jones, and advisor never called her client for four years after 9/11. An LPL guy I know is a snake.  Waddell - Lincoln? Never had a complaint.

Why does it make you so angry that people put annuities in IRA's? Do you advise your clients not to insure their homes, cars, and lives? More people have lost money in the stock market than have lost their homes due to a catastrophy. How do you reconcile this, asshole?

Bobby, if review any posting where I mentioned you, I respected you.
So I take your name calling to be in the Tony Soprano sense. Correct me if I'm wrong, and I'll just ignore you forever.
So, over time, I have move from strongly opposing the concept of annuities in IRAs, to not condemning those who do.
By the way, in an earlier post you made it sound like you thought a guy was a sucker for inheriting such accounts. I don't get your thinking, but I'm still open minded about you. Please don't remove all doubt. An apology for calling me an a****** would be a good start, if you are capable. If not, I have a pretty good idea of the type of person you might be.  

I'm tired of ignorant people and their contempt prior to investigation. I apologize for calling you an asshole. Please help me out by not being one.

AllREIT's picture
Offline
Joined: 2006-12-16

joedabrkr wrote:
Big Taco wrote:I try not to resort to ad hominem, but you're an idiot. 
Good job on not refuting anything I wrote.   Go
easy on him Taco.  He's too stupid to understand that there is a
HUGE diff between P1 and P2(indy) advisers.  I'm no amex fan, but
I certainly realize the distinction.

That's all well and good, but the antics of the P1 platform give the P2
advisors a bad name. And a fair number of x-P1's moving into the P2
platform continue the problem.

lady_trader's picture
Offline
Joined: 2007-05-12

Gotstabnoel-
I worked at AMEX for close to 6 years, licensed, but not a Financial Advisor. I have worked for the last 4 years at a bank.  I have talked to Financial Advisors for about 9 years/ 40 hours a week.
You mentioned in your post that your bank doesn't pay for sponsorship. Would you want to work there? At the bank that I work for, we do not hire FA's unless they have been in the biz for 2 years. What is your bank's policy?
I felt the need to "but" into this thread because Ameriprise was being slammed. It is by no means perfect, but I feel it presents a fair opportunity. Some of the bank reps that I work for are some of the most likable people in the world, but they can be lazy/lack desire for product knowledge compared to an Ameriprise FA.  Also, there are a lot of different channels and flexibility for FA's that the bank may not offer.
However, if you like the bank environment, don't leave. Perhaps you need to interview with more banks.

drewski803's picture
Offline
Joined: 2007-05-08

I did an internship for Ameriprise before graduating and accepting my position with a wirehouse.  I interviewed for the p1 platform, a position with my current (p2) advisor-boss, and the wirehouse job.  Here are my thoughts (I am 23, have 4mm AUM with 1.5mm in fee-based accounts):The p1 platform at Ameriprise stinks.  I believe that when I was hired there they had not actually ever graduated a broker through it (this COULD be totally BS but I think there is some merit in it).  I think this platform focuses a bit too much on the 'fishbowl' marketing scheme and utilizing your 'natural market' (read: Friends and Family).  My problem with these two avenues is that 1, you don't get NEARLY the number of contacts you probably need to be successful and 2, I think your first 2 months in the business is the exact WRONG time to call your best friends' parents for money.The p2 platform, from my experience, appears to be decent to good.  I base this on the fact that you do build equity in your book (in fact my old boss was a huge buyer of books) and that there don't seem to be many incentives to do a certain kind of business.  I have to agree with Taco here that he really can do any kind of business he wants (although I would say that the vast majority of even p2 advisors, in practice focus on the insurance side of the business and use average fund managers for the rest).  All that being said, I think if you want to survive in the Ameriprise system your best bet is seek out a p2 advisor and throw yourself at him/her.The wirehouses will ask you to cold call for medium sized accounts, put them into managed accounts, and repeat.  In my estimation, while this business model might not be totally free of conflicts-of-interest, it does represent the fewest and the best opportunity to excel in this business and help people.That is my 2 cents that is probably really worthless, sorry for asking you to read it.

drewski803's picture
Offline
Joined: 2007-05-08

Oh yeah and I don't believe that age thing at all.  I team up with older advisors daily and in a significant amount of cases, I find the prospect making eye contact only with me and speaking directly to me despite the fact that I look like I am 16.  If you act the part, you are simply a young hot-shot who everyone wants to grab a piece of on his/her rise to stardum.

AllREIT's picture
Offline
Joined: 2006-12-16

drewski803 wrote:Oh yeah and I don't believe that age thing at
all.  I team up with older advisors daily and in a significant
amount of cases, I find the prospect making eye contact only with me
and speaking directly to me despite the fact that I look like I am
16.  If you act the part, you are simply a young hot-shot who
everyone wants to grab a piece of on his/her rise to stardum.

I'm sure everybody wants to grab a piece of an up and comming life insurance agent.

Big Taco's picture
Offline
Joined: 2006-11-16

AllREIT wrote: joedabrkr wrote: Big Taco wrote:
I try not to resort to ad hominem, but you're an idiot. 
Good job on not refuting anything I wrote.   
Go easy on him Taco.  He's too stupid to understand that there is a HUGE diff between P1 and P2(indy) advisers.  I'm no amex fan, but I certainly realize the distinction.That's all well and good, but the antics of the P1 platform give the P2 advisors a bad name. And a fair number of x-P1's moving into the P2 platform continue the problem.
That's silly.  Mostly market forces will incent business owners (P2) to be good stewards of their business, and keep clients happy, and grow a good business that will look attractive to a buyer someday (part of their retirement packages).
With the P1s or newbies who go into P2 as an Associate FA, they should have incentive to be good stewards as future buyers of these senior FA's practices... And, the P2 advisors that spent so many years busting their butts to build businesses should be watching their Associates to make sure they're not doing anything detrimental to their firms.
It's not like most FAs who comes out of P1 are screaming convicts.  To advocate this viewpoint is like saying that every FA from every FA training program will hurt their clients, and eventually tarnish their firms reputation.
 

AllREIT's picture
Offline
Joined: 2006-12-16

Quote:It's not like most FAs who comes out of P1 are screaming
convicts.  To advocate this viewpoint is like saying that every FA
from every FA training program will hurt their clients, and eventually
tarnish their firms reputation.
That's not too far from the truth.

Taco you are missing the point that I'm making.

I'm sure the P2 advisors do a fine job by their clients, but the brand they operate under is tarnished by the VUL pushing P1's.

I've heard a fair number of AMP horror stories, that were done at the P1 level.

This is like Red China and Hong Kong. Two systems, One flag.

Big Taco's picture
Offline
Joined: 2006-11-16

AllREIT wrote:
Quote:It's not like most FAs who comes out of P1 are screaming convicts.  To advocate this viewpoint is like saying that every FA from every FA training program will hurt their clients, and eventually tarnish their firms reputation.
That's not too far from the truth. Taco you are missing the point that I'm making.I'm sure the P2 advisors do a fine job by their clients, but the brand they operate under is tarnished by the VUL pushing P1's. I've heard a fair number of AMP horror stories, that were done at the P1 level. This is like Red China and Hong Kong. Two systems, One flag.
I think I get it.  Everyone in Red China and P1 are guilty by association because of some stories you heard.  Furthermore, whenever someone from the mainland China visits Hong Kong, or whenever someone from P1 goes P2, everyone's reputation gets tarnished.

Bellringer's picture
Offline
Joined: 2007-06-01

I interned for a P2 advisor with Amex before they were Ameriprise when I was in college.  For someone new in this business it was a good education in time management, forming a business model, client segmentation, etc.  At the time, this guy was their #2 producer in California.  Ameriprise is quite content to cater to non-affluent individuals unlike ML, MS, or the likes.  ML is unlikely to hire someone fresh outta college with little experience as they're really seeking seasoned professionals networked in affluent circles.  Best of luck.

maybeeeeeeee's picture
Offline
Joined: 2005-02-24

Ameriprise is where you go if and only if you cannot get an offer from a decent firm.  NOBODY goes from ML, SB, AGE, LPL, RJ to Ameriprise.  They do not treat their advisors or their clients very well.

bluestars80's picture
Offline
Joined: 2007-07-12

Big Taco wrote:
I am an Ameriprise franchisee.  I like the culture and platform.  sounds like you're starting out on the "trainee" platform, called P1.  If you want a career in this business, stop talking about "enjoying your personal life".  you won't have one for 3 years.  see if you can hack it, then start your own office, or franchise on the P2 platform.  you'll own your business and client base, unlike many shops out there, and can sell it someday.  I don't like P1, but you gotta start somewhere, and have a long-term vision.
I read other posts (above) about being "forced" to sell VUL, VA, Mutual Funds.  It's all BS.  Sell whatever is appropriate.  I can sell from a variety of insurance companies, funds, etfs, whatever.  Before the Wach merger, I believe Ameriprise was the 4th largest B/D in the country, so they have a diverse platform of investment offerings.  The only area an Ameriprise Financail advisor is captive is annuities.  But the Riversource variable annuities are less expensive than over 90% of the industry's products (as rated by Morningstar).  You also don't have to sell the in-house mutual funds, nor do you get any extra compensation for doing so.  They're not a substantial part of my fund business, as I don't want to seem like I have a conflict of interest.  But, since the spinoff from AmEx, there's been a lot more of our revenues pumping back into our systems and departments, including hiring good fund management.  Barron's ranked us at #3 for 2006 of 50 fund companies.
Also, you have to get your Series 66 to work at Ameriprise.  This broadens your investment product and service offerings, as you can charge for your advice, set up wrap accounts, etc.  From my understanding, many wirehouses and other firms don't want the responsibility of being a B/D and an RIA.  I like the asset based fee platform, and it's most of my investment business.
I've noticed that many of the folks that call Ameriprise the "worst" firm (or whatever adjective they use) failed out there, whether they'll admit it or not.  I'm sure this will start some flaming... eh. 
There are other reasons I like Ameriprise, and I have done my due dilligence over the years.  There's an indy platform that I've always liked, but not enough to jump ship.  And ever since the '05 spinoff, this place has gotten much better.  We don't just hand all of our profit to AmEx anymore.  The technology & infrastructure upgrades and platform broadening, leadership and niche identification has been unprecedented.
It doesn't matter to me whether or not you get on this ship or another.  But if you have questions, PM me.
 
Well, glad you're happy.  Ameriprise is better than it was but is still FAR AWAY from their franchise owners like you being an indy.  Riversource is a PROPRIETARY product, something those of us working at indies were trying to get away from.......

Big Taco's picture
Offline
Joined: 2006-11-16

Thanks, I am happy. 

AllREIT's picture
Offline
Joined: 2006-12-16

bluestars80 wrote:Well, glad you're happy.  Ameriprise is better
than it was but is still FAR AWAY from their franchise owners like you
being an indy.  Riversource is a PROPRIETARY product, something
those of us working at indies were trying to get away from.......

Quote: Ameriprise Financial
Services and its affiliates generally receive more revenue from the sale
of the RiverSource Investments family of funds than from the sale of other
funds. Ameriprise Financial Services receives inter-company allocation payments
from its affiliates on revenue generated on the sale of RiverSource Investments
family of funds. Employee compensation and operating goals at all levels
of the company are tied to the company's success. Certain employees may receive
higher compensation and other benefits based, in part, on assets invested
in the funds of RiverSource Investments.

http://www.ameriprise.com/amp/individual/products/investing/ mf-revenue-sharing.asp

Big Taco's picture
Offline
Joined: 2006-11-16

 
I can think of a couple of other fund companies that generally receive more revenue when they sell their own funds:1) Vanguard
2) Fidelity
3) Every fund family!
Do you think they'll make more selling their own products, or other companies' products? 
Allreit, next time you sell Vanguard or Fidelity funds, realize that they participate in revenue sharing also (it's in their disclosures), and that you've caused them to make "generally more revenue" than if you had NOT sold their funds.   
Yes, Ameriprise makes more money selling prop funds than non-prop.  Does that mean that I make more on prop vs. non?  No.  And I don't sell much prop funds anyway (less than 10% of my fund biz).
Did you have a point?
 

AllREIT's picture
Offline
Joined: 2006-12-16

Big Taco wrote:Allreit, next time you sell Vanguard or Fidelity
funds, realize that they participate in revenue sharing also (it's in
their disclosures), and that you've caused them to make "generally more revenue" than if you had NOT sold their funds. 

Please find a revenue sharing agreement involving VG. TIA

ameriwho's picture
Offline
Joined: 2007-07-14

Ameriprise is rubbish and you'll want to take the advice of other posters as well as the info you read on amexsux.com. Ameriprise is a joke in the industry. Your focus will be to bring in as many people into the office and sign them up for a financial plan and then convert those plans into VULs, annuities, and RiverSource mutual funds. At the start you'll have to do this by bringing in all family members and friends. Ameriprise products are expensive so once your family and friends see the hit they'll take on their portfolio you'll probably lose some friends. These VULs and annuities are good for the advisor and Ameriprise since they pay the most to the advisor and they generate guaranteed profits for 10 years due to the surrender charge. If the client pulls out early, then Ameriprise pockets the surrender charge. Consumer Reports did an article on Ameriprise and they found Ameriprise to have some of the highest costs in the industry.With Ameriprise, you won't see very many high affluent clients as those people go elsewhere. In a SEC filing, Amerprise said the average client asset is about 93,000 per client per branded advisor. While they tout that this number is increasing, don't believe this. About 9 or so months back, Ameriprise took all their clients that had little assets and were not actively working with an advisor and shifted these clients to the home office thus artifically inflating the average client asset per branded advisor.Re Riversource being ranked number 3, don't believe this either. If you look at the 10 year number you'll see RiverSource is 47 out of 50. They achieved the high one year ranking by merging poor performing mutuals funds into better performing mutual funds thus wiping away the poor performance for one year. This poor performance is still calculated in the 10 year number.Re annuities inside an IRA, doing this will be a costly mistake for the client but it'll be good Ameriprise. The supposed advantages of an annuity are tax deferred, principal guarantee, and payout for life. Do not believe these benefits especially inside an IRA. The IRA is already tax deferred so this is a waste. The principal guarantee is achived by an M&E cost for an IRA this is 0.85% per year so on 100,000 dollars you pay approx 850 dollars for the guarantee and you pay this as long as you own the policy so say the policy falls to 90K and you die you just paid 850 dollars per year 10K worth of insurance. You can go out and buy a long term term life insurance policy and receive a much higher payout versus cost. The income for life is no good. The payout rate depending on how old and what option is about 4.25% per year for a male around 65. As you can see this isn't very good and this is the reason it pays for life. If you die, Ameriprise pockets the value of the policy. While you can get a payout that guarantees payout for so many years, the payout will be less than the value of the policy plus this'll decrease the 4.25% to a lower number.Re P2s VULs and annuities, you'll hear that P2s don't push proprietary products. Don't believe this. Last quarter AMP did around 3.3B in annuities so based on 1000 P1 advisors this would equate to 3.3M per P1 advisor. I don't think so. This means that P2 advisors push annuities just like the P1s. Same holds true for the VULs.Back to your question. Avoid Ameriprise or you'll be sorry.

skiba72's picture
Offline
Joined: 2007-07-13

Ameri-Who..thanks for the info.I've had several buddies tell me they are going to go work for Ameriprise, or excited that they got offers/interviews with Ameriprise. I don't say much, except tell them to be prepared and read up on the company. They are doing well, and a lot of their advisors do well, so something, even if its minute, has to be going right. So in essence, it depends on your office, your BM, your "boss", your mentor, the situation, your clientele, etc etc..Don't judge the whole firm, but read up on it.

GoingIndy????'s picture
Offline
Joined: 2007-07-01

Here's an example of the brain power of an Ameriprise rookie advisor.  One of my good clients had 2 accounts with me.  A joint account with his wife and a single account in his daughters name which had $155k.  She inherited this from an aunt that passed away a couple of years earlier at a cost of $125k.  The daughter recently married the Ameriprise rookie and she wanted to transfer her account to her new husband.  Makes sense, no problem.But here's what he did.  I expected a change of broker of record to come in, nope, got a full liquidation and ship ACAT.  She owned American CIB, GFA, Balanced, and Cap Wld G+I.  All class A.  (I really don't do much American, but in this case I did).  So he incurred the 30k of LTCG to transfer, and sold out of some of the best funds for the last few years.When I spoke with my client and informed him, he told me the reason the son in law gave was that "he would be able to save money by owning shares at NAV". Later found out he bought Riversource which are more expensive than American. Client never found out if those were at NAV though.  My gut tells me his new bride's account was the only trades of the month. 

skbroker's picture
Offline
Joined: 2007-06-16

you should find another job.  Financial service industry is not for you if you are not willing to put in the hours

bluestars80's picture
Offline
Joined: 2007-07-12

GoingIndy???? wrote:Here's an example of the brain power of an Ameriprise rookie advisor.  One of my good clients had 2 accounts with me.  A joint account with his wife and a single account in his daughters name which had $155k.  She inherited this from an aunt that passed away a couple of years earlier at a cost of $125k.  The daughter recently married the Ameriprise rookie and she wanted to transfer her account to her new husband.  Makes sense, no problem.But here's what he did.  I expected a change of broker of record to come in, nope, got a full liquidation and ship ACAT.  She owned American CIB, GFA, Balanced, and Cap Wld G+I.  All class A.  (I really don't do much American, but in this case I did).  So he incurred the 30k of LTCG to transfer, and sold out of some of the best funds for the last few years.When I spoke with my client and informed him, he told me the reason the son in law gave was that "he would be able to save money by owning shares at NAV". Later found out he bought Riversource which are more expensive than American. Client never found out if those were at NAV though.  My gut tells me his new bride's account was the only trades of the month. 
So he could of gotten trades at NAV as a broker for his WIFE, and put her in Riversource?  Man, I hope he sleeps with one eye open from now on.........

Big Taco's picture
Offline
Joined: 2006-11-16

AllREIT wrote: Big Taco wrote:
Allreit, next time you sell Vanguard or Fidelity funds, realize that they participate in revenue sharing also (it's in their disclosures), and that you've caused them to make "generally more revenue" than if you had NOT sold their funds. 
Please find a revenue sharing agreement involving VG. TIA
Please, allreit, just think about it for a second.  Does Vanguard make more selling their own funds, or other investment companies' funds? 
Why do they push all their own funds when you call them?  Are they going to suggest you invest in Fidelity, American Century, Schwab?  I don't think so.  They want to your money to go into Vanguard.  They make more money that way.
Here's a link to the rev sharing pdf.
https://flagship.vanguard.com/VGApp/hnw/SearchResultsSec?que ry=revenue%20sharing&origin=home
It must have been reworded by their legal dept. recently, as a few months ago it actually read that revenue sharing is a "significant portion of revenue" for Vanguard.
 

AllREIT's picture
Offline
Joined: 2006-12-16

Big Taco wrote:AllREIT wrote: Big Taco wrote:
Allreit, next time you sell Vanguard or Fidelity funds, realize that
they participate in revenue sharing also (it's in their disclosures),
and that you've caused them to make "generally more revenue" than if you had NOT sold their funds. 
Please find a revenue sharing agreement involving VG. TIA
Please, allreit, just think about it for a second.  Does
Vanguard make more selling their own funds, or other investment
companies' funds? 
Why do they push all their own funds when you call them?  Are
they going to suggest you invest in Fidelity, American Century,
Schwab?  I don't think so.  They want to your money to go
into Vanguard.  They make more money that way.
Here's a link to the rev sharing pdf.
https://flagship.vanguard.com/VGApp/hnw/SearchResultsSec?que ry=revenue%20sharing&origin=home
It must have been reworded by their legal dept. recently, as a few
months ago it actually read that revenue sharing is a "significant
portion of revenue" for Vanguard.

You don't understand what VG Brokerage services is. VG operates
their own mutual funds, and they are operated as a co-operative and
thus for minimal profit.

They also run a brokerage platform as a convenience to customers,
through that platform its possible to have acess to all the funds that
Pershing offers. Those funds with 12b-1 fee's are No-transaction fee
funds, other funds have ticket charges.

The big issue is the "supplimental" revenue sharing that takes place at
AMP/EDJ to encourage "financial advisors" to promote the sale of RVS
and other preferred funds.

VG's brokerage platform is fully client directed, so 12b-1 fee's have
no effect on client choices. AMP's/EDJ's platform is  nominally
client directed , (but in reality people follow the brokers advice) and
so 12b-1 fee's and supplimental revenue sharing (kickbacks) have a
major effect on fund choices made.

 

Please or Register to post comments.

Industry Newsletters
Investment Category Sponsor Links

 

Sponsored Introduction Continue on to (or wait seconds) ×