FiNet for Small Producer

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SmallTime FA's picture
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Joined: 2009-05-28

As a current low level producer with Wells Fargo/Wachovia (PCG) I am concerned with my future as are alot of other FA's.  My production last year was $210k and I expect this year to be around $150k.  The rumor is $150k and below FA's will be given 90 days to essentially find a new job.  Although, I have heard different stories as to what options will be given to those FA's.  I am wondering if they will allow an FA like myself to join an existing Finet office.  I know that FA's were required to have at least $250k in production to start a Finet office.  But with the market and the possible cutbacks, I wonder if they will make exceptions for FA's wanting to join another office.  It makes sense, since they will be rid of "unprofitable" brokers that they intended to fire anyway.
 
Does anybody have any inside details on the possible cuts/options and, does anyone have any ideas on my Finet question?

ChurnNBurn's picture
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Joined: 2008-11-11

FAs have never been able to join FiNet offices. It seems Wells is trying to up the ante for brokers moving to that channel. Guy in my office with T12 295 was denied last week. If anything it seems they will up the minimums since so many guys are applying. FAs are able to join a team under profit formula im pretty sure, but even that is rumored to be upped to 1.5 MM. Why FiNet? at 150 you could make a great living at Commonwealth or LPL.

SmallTime FA's picture
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Joined: 2009-05-28

ChurnNBurn wrote:FAs have never been able to join FiNet offices. It seems Wells is trying to up the ante for brokers moving to that channel. Guy in my office with T12 295 was denied last week. If anything it seems they will up the minimums since so many guys are applying. FAs are able to join a team under profit formula im pretty sure, but even that is rumored to be upped to 1.5 MM. Why FiNet? at 150 you could make a great living at Commonwealth or LPL.
 
I have met several times with LPL.  They sound great.  I just have a fear of only pulling half my book and ruining my modest career. 

burtonfinancial1's picture
Joined: 2008-09-30

Dude, re-examine that last sentence. Not here to beat you up, but if this is reflective of your mindset and shows through to clients or potential firm opportunities, it's going to keep you at $150k.  If your clients can be picked off by competitors or even those in your office if you leave, you CAN move them. 

SmallTime FA's picture
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Joined: 2009-05-28

burtonfinancial1 wrote: If your clients can be picked off by competitors or even those in your office if you leave, you CAN move them. 
 
I didnt quite understand this statement. 
 
Since I moved from a bank to my current firm, my revenues have increased 11% a year.  I admit that I am not the kind of broker that works 12 hour days.  I value my family time very highly.  Also, a number of my clients were inherited, so gauging their loyalty is difficult.  I portray plenty of confidence to my clients, but when considering the future, I am by nature a pessimist.  I think when considering a move it is best to err on the side of caution.  Although, in my case, I might be a bit extreme.

SmallTime FA's picture
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Joined: 2009-05-28

I just found out that a producer of my size can join an existing Finet office.  However, this move would be no different than moving to any other firm, i.e. ACATs are needed.  Although expected client retention may be slighty higher, it may make more sense to transfer a little less in assets in exchange for a higher payout/cheaper firm.

 
Someone mentioned Commonwealth.  I dont know much about them.  What are they like?

illinoisrep's picture
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Joined: 2007-01-09

I investigated Commonwealth carefully before joining Finet in April. They are a fine firm, but their standards are pretty high. Minimum of $250k in production. You may contact them about joining an existing office though.

Regarding joining an existing Finet office, if I found a smaller producer who I wanted to bring into my business, I would not take no for an answer. Have you been in contact with an existing Finet office about joining them? Feel free to PM me if you want to talk in more detail.

Redpen's picture
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Joined: 2005-08-07

illinoisrep wrote:I investigated Commonwealth carefully before joining Finet in April. They are a fine firm, but their standards are pretty high. Minimum of $250k in production. You may contact them about joining an existing office though. Regarding joining an existing Finet office, if I found a smaller producer who I wanted to bring into my business, I would not take no for an answer. Have you been in contact with an existing Finet office about joining them? Feel free to PM me if you want to talk in more detail. What ?

avise's picture
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Joined: 2007-12-11

Check out H.D. Vest...it's part of Wells Fargo and it has low production numbers (because it supports attorneys and CPA's who handle their client's money). Might make the client transition easier if you are going to another division on WFC. 

trdr10's picture
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Joined: 2010-11-24

Small time, did you move to Finet?  I'm in a similar position and am inquiring about the minimums etc...

I am legend's picture
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Joined: 2010-03-04

The minimum is now 300k to move to FINET unless you can get on at an existing practice.

RWM's picture
RWM
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Joined: 2010-06-08

Small Time...Sir, PCG wants you gone!  90 days my ass they will give you 90 minutes maybe.  You are a dead man walking in this environment. They need the larger producers to pay for all the "market managers, products specialist,  and productivity coaches" and staff for all this overhead while you generate revenue.."It's like the picture of six guys standing around watching one guy dig the hole".  See what your largest and best paying clients want first....mention moving to another new Wells Fargo Channel.  You maybe able to keep the same account numbers etc.   Find an existing FINET office and go independent in your territory.  Illinois rep is correct.  As long as you don't have any drama and are ethical most of the independents will give you a chance. Don't believe anything PCG tells you.  At your level they just don't care. If you have to payback any money to PCG they will go after your new broker dealer or you personally.  It could be months but they will eventually come after you.  Take your biggest households and leave the PIAs clients behind at PCG.To find a FINET branch go to www.wfadvisors.com  put in your zip code and any offices that say Wells Fargo Financial Network or has a practice name are FINET offices.  Call the Raymond James and LPL recruitor as well.  They will know who is looking for a junior partner.  PS FINET has  alot of the good without the bad. Make a decision before it is made for you and your manager is waching if you take your stapler!...Good Luck

Mucker's picture
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Joined: 2008-10-27

I cannot deny or confirm the $150K rumor about letting FA's go.  I do know, I heard straight from a high level manager (Which we have many...too many) that, "Wachovia never had to cut low level producers, that is what the grid is for."  That same person still lingers in his cozzy WFA office.  I would assume (Love that word) they still feel the same way.    The real question is, can you survive on $41,000/yr.

squash2's picture
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Joined: 2010-03-09

Mucker wrote:I cannot deny or confirm the $150K rumor about letting FA's go.  I do know, I heard straight from a high level manager (Which we have many...too many) that, "Wachovia never had to cut low level producers, that is what the grid is for."  That same person still lingers in his cozzy WFA office.  I would assume (Love that word) they still feel the same way.    The real question is, can you survive on $41,000/yr.How do you get that number?

Mucker's picture
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Joined: 2008-10-27

squash2 wrote:Mucker wrote:I cannot deny or confirm the $150K rumor about letting FA's go.  I do know, I heard straight from a high level manager (Which we have many...too many) that, "Wachovia never had to cut low level producers, that is what the grid is for."  That same person still lingers in his cozzy WFA office.  I would assume (Love that word) they still feel the same way.    The real question is, can you survive on $41,000/yr.How do you get that number?150/12 = 12,500/avg month.First 10,000 x .22 = 2,200Next 2,500 x .50 = 1,2503450 x 12 months... 41,400 However, I think there is a minimum payout.  It might be 35%, so that number would be more like $52,500.

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