Minimum account size

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ShoreDog's picture
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Joined: 2007-05-14

As a newbie do you take any account that comes you way or do you always maintain your minimums at 200k 500k etc.?
If you only prospect HNW how do you target that group?

MISS JONES's picture
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Joined: 2007-08-28

Shore. I am a newbie, maybe I can help.. I don't just take ANY account. You have to decided how much work you will have to do for the client.. If it seems like it will be a LOT.. Then you must find out how much more money the client plans to bring in for investment purpose.. Or how many referrals you may get from them (i.e. what kind of job they have.. CPA, Attorney, Preacher, school administrator..) In general I am open for any new accounts.. But I don't want to waste too much time either.  
I would say your min should remain if the only business you do is in fee based accounts.
Miss J

bambee's picture
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Joined: 2007-09-18

Figuring out how to get paid for your time is the issue. If you can charge for financial planning, you can do good work and build the relationship, with less concern about account size or assets that you get to manage.

techo's picture
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Joined: 2007-07-24

Miss Jones, I am going out on a limb and guessing you are with EDJ?  How long have you been with Jones?  I have a telephone interview with them.  I was wondering how it was going this far.  I have a million other questions as well.

bambee's picture
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Joined: 2007-09-18

Techno, if you are just starting in the business, I suggest you talk to them before talking to folks (Not Ms. J.) who may have a negative take on Jones or any other training firm.
It's not the starting with Jones, this is a very rough business, so be sure to think for yourself and protect your enthusiasm.

ShoreDog's picture
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Joined: 2007-05-14

bambee wrote:Figuring out how to get paid for your time is the issue. If you can charge for financial planning, you can do good work and build the relationship, with less concern about account size or assets that you get to manage.
Is charging for financial planning against FINRA rules if you are a commissioned advisor?

bambee's picture
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Joined: 2007-09-18

Don't know about FINRA, but you can be affiliated with a broker dealer and charge a separate planning fee if your b/d carries the RIA, which I would think with wrap accounts these days, is just about everyone, except, of course Allreit, bless his soul.

Gordon Gekko's picture
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Joined: 2007-07-08

I am not a newbie, I am posting here to get to my 50 posts (new to the forum, not the business). I think that account minimum is near-sighted and total bs. Everyone is chasing high net worth investors.

techo's picture
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Joined: 2007-07-24

Thanks for the input Bambee.  I have been lurking on this and another forum for quite a while.  I have interviewed someone who just left Edward Jones.  I like to get the scoop and realize where the scoop came from.  Thanks again!

ShoreDog's picture
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Joined: 2007-05-14

Gordon Gekko wrote:I am not a newbie, I am posting here to get to my 50 posts (new to the forum, not the business). I think that account minimum is near-sighted and total bs. Everyone is chasing high net worth investors.
So Gekko, you take the $100.00 monthly PACs. I'm not criticizing I really want to know.
If someone doesn't take smaller accounts do you just turn them down if after sitting down you realize that all they have is 50k in an IRA?
 
I know this isn't a very lively topic but I don't want to just keep posting nothing to get to 50
 

MakrsMark's picture
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Joined: 2007-09-13

yeah, me either.  keep it lively people

vbrainy's picture
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Joined: 2006-07-26

my branch manager wants $100k, but I take $50k.  Especially if I think they can be a good referral base.
But I don't take any dead assets.  Meaning, I have to be able to put together the portfolio and get paid.
This is not a bank and I get paid for my work.  I don't want to work someone elses portfolio and not get paid.

Broker24's picture
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Joined: 2006-10-12

ShoreDog wrote:
Gordon Gekko wrote:I am not a newbie, I am posting here to get to my 50 posts (new to the forum, not the business). I think that account minimum is near-sighted and total bs. Everyone is chasing high net worth investors.
So Gekko, you take the $100.00 monthly PACs. I'm not criticizing I really want to know.
If someone doesn't take smaller accounts do you just turn them down if after sitting down you realize that all they have is 50k in an IRA?
 
I know this isn't a very lively topic but I don't want to just keep posting nothing to get to 50

Personally, I target my minimum at around 75K.  But I also consider other factors such as age, 401K balances, etc.  I have plenty of clients with 50-100K with me, but have very large 6 figure 401K balances.  I want to get those some day, even if it takes 5 or 10 years.  Now, I am in my mid-30's, so I have a long time horizon.  If I were 55, I may not be wasting my time on those.  It will be nice to have those assets in the pipeline down the road.   
Also, I will take some younger people that really want the help, are willing to save, will take my advice, and have "potential".  I don't target these people by any means, but if it's a referral from a good client, I am not going to turn them down.  It's sort of like service to the referring client (I get a lot of referrals from parents for their 20/30 year old kids - they want them to start out saving and investing the right way).  I don't mind these because they are good people that will listen and do what I say, and actually take action when I tell them to.  I get a lot of little ancillary business from these, too (i.e. term life).
I inherited some deadbeat accounts for kids that inherited some stock or something from parents, and it is just a pain in the #$% to service.  Really, I just hate seeing those dead accounts sitting there.

maybeeeeeeee's picture
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Joined: 2005-02-24

dead assets.  pain. 

wickedriley's picture
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Joined: 2008-01-07

I set my minimum at 250k, but being with an RIA, I charge hourly below that level but don't necessarily custody the assets.  I'm hoping it will set up a good feeder system for the future if my advice helps that client get to my minimum.  If not, I did my part to help somebody with less who was willing to pay money to be helped.
 
250 clients at 250k an account = 62.5 mil
At 1% - $625,000
 
Even at a wirehouse payout grid, thats good money in my book.

wickedriley's picture
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Joined: 2008-01-07

Thats the goal, although I hope by the time I'm at my goal it will look more like 150 clients at 500k.
 
I'm in a unique (and very lucky) situation where our RIA is owned by an accounting firm.  Lots of good referrals and I'm salaried at a liveable wage until my payout exceeds my salary.  Our managing director views us as a bonus service to our bigger accounting clients so there isn't much pressure as far as sales goals and minimums, so I can focus on quality clients and building my book as I see fit.

troll's picture
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Joined: 2004-11-29

wickedriley wrote: Thats the goal, although I hope by the time I'm at my goal it will look more like 150 clients at 500k.
 
I'm in a unique (and very lucky) situation where our RIA is owned by an accounting firm.  Lots of good referrals and I'm salaried at a liveable wage until my payout exceeds my salary.  Our managing director views us as a bonus service to our bigger accounting clients so there isn't much pressure as far as sales goals and minimums, so I can focus on quality clients and building my book as I see fit.

Whats the name of this RIA or others like it. Yes its a unique & good opportunity. Lucky u!! So whats the name of the RIA u work for? PLEASE?

vrock74's picture
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Joined: 2008-02-13

You take whatever accounts come your way.  Beggars can't be choosers.  Small accounts can grow into large accounts...
 
Silly Rabbit....

Morphius's picture
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Joined: 2007-07-21

vrock74 wrote:You take whatever accounts come your way.  Beggars can't be choosers.  Small accounts can grow into large accounts...
 
Silly Rabbit....Although if you want to get really elitist you mignt want to at least insist that they be capable of fogging a mirror ...

jwcopper's picture
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Joined: 2008-05-13

Depending on where you are, and what products/services you offer, you should have a strategy for all account sizes.  I am in the camp of doing good for anyone who is willing to take advice, is willing to pay for the advice, and I enjoy being around.  If they don't fit those criteria (I have walked away from multi million dollar portfolios) let them go.  I simply have programs and services tiered for the clients needs.  Someone with $50k to rollover needs help and advice, but we can't spend 20 hours working with them unless they pay us a financial planning fee on top of investment management.  So you should have a solution ready for that account size.  Higher accounts get more of your personal service and attention.  Everyone gets good quality, the amount just varies.

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