Bottom Line for MS Newbies

26 replies [Last post]
opie's picture
Offline
Joined: 2006-06-15

Given the management changes taking place, and the report back in March that there is an exodus of investors from in-house mutual funds and skittishness at Van Kampen, is this a red flag for career changes considering FA training at MS?
Yes, I am a newbie, so pls spare the flames.

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

opie wrote:
Given the management changes taking place, and the report back in March that there is an exodus of investors from in-house mutual funds and skittishness at Van Kampen, is this a red flag for career changes considering FA training at MS?
Yes, I am a newbie, so pls spare the flames.

What's this report from March abaout? I haven't seen it, and I couldn't imagine what that would have to do any way with a newbie at MS. It's not as if you're tracked specifically on the sale of in-house or VK funds, or that you're paid a dime more to sell them.
If you're in the program now, and survived the slash of trainees, I'd say you're sitting pretty.

opie's picture
Offline
Joined: 2006-06-15

]Thanks for the quick response Mike.  I didn't mean to imply that I was
already employed - I am in the interview process.
The WSJ article I'm reading is entitled "Morgan Stanley's Funds Challenge),
from March 23, by Arden Dale (C15).  The title on WSJ Online is "Morgan
Stanley Unit Suffers Outflows".
If I were to get a start at MS (or other major wirehouses, for that matter),
would I have difficulty retaining clients if I later went indy?

frumhere's picture
Offline
Joined: 2005-02-22

I did not loose and MS funds

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

 
opie wrote: <?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
Thanks for the quick response Mike.  I didn't mean to imply that I was already employed - I am in the interview process.
The WSJ article I'm reading is entitled "Morgan Stanley's Funds Challenge), from March 23, by Arden Dale (C15).  The title on WSJ Online is "Morgan Stanley Unit Suffers Outflows".
If I were to get a start at MS (or other major wirehouses, for that matter), would I have difficulty retaining clients if I later went indy?

Interesting article. I couldn't tell you how the outflow numbers in those funds compared to other complexes during the same time-frame, but that would be a good place to make comparisons. If I had to guess I'd say it was a result of FAs leaving the firm since the Pursell/Mack fight began. Either way, it wouldn’t matter to a trainee, since again, you’re not paid more a dime to sell them and you’re not tracked towards success based on sales of them. It’s a non-issue.
Whether or not you can take clients with you, should you decide to leave MS or any other wirehouse all has to do with how you came to have those relationships (if they’re inherited, you’ll have less of a grip on them)  and how well you took care of the client/cultivated the relationship.
Having said that, if I were in your shoes I’d be much more concerned about short-term survival than whether or not I could transition to Indy down the road somewhere.
 

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

frumhere wrote:I did not loose and MS funds
 
Frum, buddy, should you be drinking at this hour? 

opie's picture
Offline
Joined: 2006-06-15

mikebutler222 wrote:Having said that, if I were in your shoes I’d be much more concerned about short-term survival than whether or not I could transition to Indy down the road somewhere.
I concur.  If you have any MS specific tips on survival - I'm all ears.

wlooney's picture
Offline
Joined: 2006-06-03

Opie, good luck with your interview. I would definately consider SB and ML, as they are the leaders right now, but don't worry about MS in the very near future. The management changes should be a positive for new FAs. John Mack (CEO) hired of James Gorman from ML. Mack also fired the head of retail brokerage, John Schaefer, soon after returning to MS a year ago and James Gorman brought in three (I believe) former ML coworkers to run much of the retail brokerage. Since you will be able to sell whatever you feel is best for your client, the performance and/or attractiveness of Van Kampen funds should have no relevance on you as a trainee. Also, with these changes, MS wants to implement a training program more like MLs, which will mean less trainee hires, in order to provide them better training, more resources and more time to build a book effectively. You will still be required to reach some lofty goals, but that is no different than in any of these companies.
I definately agree with Mike above. We missed the large cuts to trainees, so new trainees should be in a better position for success at MS than before. ML boasts that 40-50% of their trainees are still in the industry. That is astounding to me, since the number we usually hear in general is 20%. Hopefully, MS is on the right track for my sake.

frumhere's picture
Offline
Joined: 2005-02-22

and i manage money!

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

opie wrote:
mikebutler222 wrote:Having said that, if I were in your shoes I’d be much more concerned about short-term survival than whether or not I could transition to Indy down the road somewhere.
I concur.  If you have any MS specific tips on survival - I'm all ears.

I'd offer you anything I could. I'm afraid I'm not familiar enough with the new training program to be much use to you there. However, I'll tell you for industry-wise tips on survival, you're in a good place here. If you can get past all the Jones content, and read posts from a handful of really useful people (it's obvious who they are) you can learn a great deal.
 
I'd start with reading everything tjc45  has ever posted.

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

frumhere wrote:and i manage money!
 
Yeah, but thankfully not much . 
 
I'm sorry, brother, I just couldn't help myself. Have a great weekend, and come back Monday sober. 

dude's picture
Offline
Joined: 2005-11-15

mikebutler222 wrote:opie wrote:
mikebutler222 wrote:Having said that, if I were in your shoes I’d be much more concerned about short-term survival than whether or not I could transition to Indy down the road somewhere.
I concur.  If you have any MS specific tips on survival - I'm all ears.

I'd offer you anything I could. I'm afraid I'm not familiar enough with the new training program to be much use to you there. However, I'll tell you for industry-wise tips on survival, you're in a good place here. If you can get past all the Jones content, and read posts from a handful of really useful people (it's obvious who they are) you can learn a great deal.
 
I'd start with reading everything tjc45  has ever posted.

Blarmston and Rightway are also well respected around here for relevant posts.

opie's picture
Offline
Joined: 2006-06-15

Thanks guys.  Much oblige.  I'll be taking math and reading exams soon.

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

dude wrote:mikebutler222 wrote:opie wrote:
mikebutler222 wrote:Having said that, if I were in your shoes I’d be much more concerned about short-term survival than whether or not I could transition to Indy down the road somewhere.
I concur.  If you have any MS specific tips on survival - I'm all ears.

I'd offer you anything I could. I'm afraid I'm not familiar enough with the new training program to be much use to you there. However, I'll tell you for industry-wise tips on survival, you're in a good place here. If you can get past all the Jones content, and read posts from a handful of really useful people (it's obvious who they are) you can learn a great deal.
 
I'd start with reading everything  tjc45  has ever posted.

Blarmston and Rightway are also well respected around here for relevant posts.

 
I would agree completely.

frumhere's picture
Offline
Joined: 2005-02-22

...back with no sleep!

blarmston's picture
Offline
Joined: 2005-02-26

...back with no sleep!
I hear you.... Partying until 6am on Sunday morning after boozing on the beach from Sat 2pm is hitting pretty hard right now. And I even passed out on the couch last night after the Heat game...... Oh well... it is what it is.... another cup of starbucks and I'll make it...

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

Be careful with Morgan Stanley unless they give you some type of a time on the job guarantee.  Well, that is not the right words, but here is what I am trying (horribly) to say.  It is going to take a good 3 years to get your revenue up to $250k.  I think they just cut everyone who was not at that level.  It is my understanding that their focus is on brokers from other firms.  It would truly stink to bring all your friends and family and then get canned because you made $60k revenue in your first year (which would be pretty good).
Best of luck.

Indyone's picture
Offline
Joined: 2005-05-30

From an article I just read, here's a possible benchmark for getting cut loose...
"Gorman also linked compliance problems to financial advisers with few assets on their books. In a PowerPoint presentation, he noted that brokers with less than $5 million in assets account for 20% of the firm's litigation costs, although they generally hold 1% of Morgan's assets. A Morgan spokesman, however, said that company officials don't plan the outright release of advisers with less than $5 million in client assets."
My guess is, if you're at or below $5 million AUM and not inside the first 18 months, you're probably skating on thin ice anyway...

NASD Newbie's picture
Offline
Joined: 2005-08-01

maybeeeeeeee wrote:
Be careful with Morgan Stanley unless they give you some type of a time on the job guarantee.  Well, that is not the right words, but here is what I am trying (horribly) to say.  It is going to take a good 3 years to get your revenue up to $250k.  I think they just cut everyone who was not at that level.  It is my understanding that their focus is on brokers from other firms.  It would truly stink to bring all your friends and family and then get canned because you made $60k revenue in your first year (which would be pretty good).
Best of luck.

Should that gurantee be in writing, or is a handshake enough?
Everybody should pay a lot of attention to what this girl is saying, she's been in the business for several million seconds and has it down cold.

frumhere's picture
Offline
Joined: 2005-02-22

anyone under 10mm in AUM can't make an honest living anyway if you are on the grid.  I doubt highly that there are many 150k producers left that are not still in the training programs (<3yrs)...how can you live anywhere in the US on ~50k, less taxes?

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

maybeeeeeeee wrote:
Be careful with Morgan Stanley unless they give you some type of a time on the job guarantee.  Well, that is not the right words, but here is what I am trying (horribly) to say.  It is going to take a good 3 years to get your revenue up to $250k.  I think they just cut everyone who was not at that level.  It is my understanding that their focus is on brokers from other firms.  It would truly stink to bring all your friends and family and then get canned because you made $60k revenue in your first year (which would be pretty good).
Best of luck.

No offense, maybeeee, but in a venue where you can contact people who actually are at the firm in question maybe it's best not to offer up advice based on third-hand reports of life there. Your report was just completely  erroneous.<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
 

frumhere's picture
Offline
Joined: 2005-02-22

...on a seperate topic...
Did you just see that goal that Italy scored! 3-0.  beautiful

doberman's picture
Offline
Joined: 2005-02-22

frumhere:
...on a seperate topic...
Did you just see that goal that Italy scored! 3-0.  beautiful
-----------------------------------
Soccer is for Eurotrash!
Gimme touchdowns, last second Hail Mary's, and bone-crunching, highlight-making hits! Gimme football!
Gimme John Madden's pointless ramblings!
Gimme sexist beer commercials!
Gimme a 90-yard touchdown run! 
Gimme football!
...Now, back to the topic at hand.

frumhere's picture
Offline
Joined: 2005-02-22

How could you even say that now...after watching the Italy/Germany game!
John Madden.  Have you ever heard Frank Caliendo's bit on him.  I nearly crashed my car on the way home listening to him do John Madden talking about his love affair with Brett Farve.
Gooooooooool!Gooooooooool!
 

doberman's picture
Offline
Joined: 2005-02-22

frumhere:
How could you even say that now...after watching the Italy/Germany game!
Dobe: Well, you see, there was a problem. At the same time, PBS had a special on strategies in the sport of curling and I just couldn't miss it. In any case, I'm sure I saw more action than you!
John Madden.  Have you ever heard Frank Caliendo's bit on him.  I nearly crashed my car on the way home listening to him do John Madden talking about his love affair with Brett Farve.
Dobe: He is good.
Gooooooooool!Gooooooooool!
Dobe: Huh? Time for your medication!
 
 
 

blarmston's picture
Offline
Joined: 2005-02-26

Ahhhhh. The World Cup is a great event.... But I cant wait until November when college basketball gets going again..... UCONN#1 !!!!!!!!

opie's picture
Offline
Joined: 2006-06-15

I can't wait for the next World Cup!  That one will really rule...
 
 

Please or Register to post comments.

Industry Newsletters
Careers Category Sponsor Links

Sponsored Introduction Continue on to (or wait seconds) ×