Leaving WFA

14 replies [Last post]
Malakai's picture
Offline
Joined: 2010-09-16

Anything you guys can tell me good or bad about Waddell and Reed?  Also, has anybody got any experience leaving WFA and paying back the retention bonus.  Your help is appreciated.

palmpre's picture
Offline
Joined: 2010-09-07

You are going from WFA to Waddell and Reed?? Really?

Malakai's picture
Offline
Joined: 2010-09-16

Yep.  Having to cover $400 worth of account fees for a good client to keep the client is about the last straw.  Tired of working for a firm that appears to be working against me.  Do you also work for Satan?

Gaddock's picture
Offline
Joined: 2007-02-23

Malakai wrote:Yep.  Having to cover $400 worth of account fees for a good client to keep the client is about the last straw.  Tired of working for a firm that appears to be working against me.  Do you also work for Satan?Amen to that brother. Not only that but they take it from NET! I dropped a grand for the same.But W&R? bide your time, swallow your anger. If they are the best fit all power to you and the best of luck. 

Conrad Dobler's picture
Offline
Joined: 2009-01-11

Malakai wrote:Yep.  Having to cover $400 worth of account fees for a good client to keep the client is about the last straw.  Tired of working for a firm that appears to be working against me.  Do you also work for Satan? You mean account fees? Aren't all account fees waived on households over $250k? And don't you have descretionary money to cover other account fees if you like? If that's true, how could a HH under $250k ring up over $400 in account fees?

JumpMan's picture
Offline
Joined: 2010-06-08

Why not move to FiNet?  Do they charge the same silly fees?  Waddel Reed blows.

Malakai's picture
Offline
Joined: 2010-09-16

Conrad Dobler wrote:Malakai wrote:Yep.  Having to cover $400 worth of account fees for a good client to keep the client is about the last straw.  Tired of working for a firm that appears to be working against me.  Do you also work for Satan? You mean account fees? Aren't all account fees waived on households over $250k? And don't you have descretionary money to cover other account fees if you like? If that's true, how could a HH under $250k ring up over $400 in account fees? Household is under $250k.  Thought he was going to sign up for online access, but he didn't.  The discretionary money doesn't cover nearly enough.  Fees were well over $400, but that is the household max.  So I missed out on the 9 different ways you can avoid fees.  Why should I have to deal with this BS?

Conrad Dobler's picture
Offline
Joined: 2009-01-11

Malakai wrote:Conrad Dobler wrote:Malakai wrote:Yep.  Having to cover $400 worth of account fees for a good client to keep the client is about the last straw.  Tired of working for a firm that appears to be working against me.  Do you also work for Satan? You mean account fees? Aren't all account fees waived on households over $250k? And don't you have descretionary money to cover other account fees if you like? If that's true, how could a HH under $250k ring up over $400 in account fees? Household is under $250k.  Thought he was going to sign up for online access, but he didn't.  The discretionary money doesn't cover nearly enough.  Fees were well over $400, but that is the household max.  So I missed out on the 9 different ways you can avoid fees.  Why should I have to deal with this BS?  You shouldn't. I'm just trying to figure out how a good client can be a HH under $250K and how a HH that small can generate $400 in account fees.

Gaddock's picture
Offline
Joined: 2007-02-23

Conrad Dobler wrote:Malakai wrote:Conrad Dobler wrote:Malakai wrote:Yep.  Having to cover $400 worth of account fees for a good client to keep the client is about the last straw.  Tired of working for a firm that appears to be working against me.  Do you also work for Satan? You mean account fees? Aren't all account fees waived on households over $250k? And don't you have descretionary money to cover other account fees if you like? If that's true, how could a HH under $250k ring up over $400 in account fees? Household is under $250k.  Thought he was going to sign up for online access, but he didn't.  The discretionary money doesn't cover nearly enough.  Fees were well over $400, but that is the household max.  So I missed out on the 9 different ways you can avoid fees.  Why should I have to deal with this BS?  You shouldn't. I'm just trying to figure out how a good client can be a HH under $250K and how a HH that small can generate $400 in account fees.For me it's the adult princess daughter of the HNW that has a couple command accounts at $125 a pop. The point, IMHO, any way you slice it it's a slap in the face to have to pay to keep your $$ at  bank. WFA knows the broker will pick up the tab NET making the cost 2.4 x $ the actual fee.They give poor people no fee checking accounts so they can f uck them on the over draft. 

IndyBDguy's picture
Offline
Joined: 2010-07-22

Malakai,PM sent.

Conrad Dobler's picture
Offline
Joined: 2009-01-11

Gaddock wrote:Conrad Dobler wrote:Malakai wrote:Conrad Dobler wrote:Malakai wrote:Yep.  Having to cover $400 worth of account fees for a good client to keep the client is about the last straw.  Tired of working for a firm that appears to be working against me.  Do you also work for Satan? You mean account fees? Aren't all account fees waived on households over $250k? And don't you have descretionary money to cover other account fees if you like? If that's true, how could a HH under $250k ring up over $400 in account fees? Household is under $250k.  Thought he was going to sign up for online access, but he didn't.  The discretionary money doesn't cover nearly enough.  Fees were well over $400, but that is the household max.  So I missed out on the 9 different ways you can avoid fees.  Why should I have to deal with this BS?  You shouldn't. I'm just trying to figure out how a good client can be a HH under $250K and how a HH that small can generate $400 in account fees.For me it's the adult princess daughter of the HNW that has a couple command accounts at $125 a pop. The point, IMHO, any way you slice it it's a slap in the face to have to pay to keep your $$ at  bank. WFA knows the broker will pick up the tab NET making the cost 2.4 x $ the actual fee.They give poor peiple no fee checking accounts so they can f uck them on the over draft.  Can't the adult princess be part of the account-free parent's HH? We can complain about account fees all we like, but finding a place where there aren't any is a challenge. If your minimum HH size is $250K doesn't the problem take care of itself?

Malakai's picture
Offline
Joined: 2010-09-16

Back on topic, W&R is showing me a 60% payout on managed money (I do a lot of MF wrap).  What am I missing? 

Sunchaser's picture
Offline
Joined: 2010-09-08

60% payout??  That sounds more like a indy %.  Do you own a franchise and assume costs to get 60%?

squash2's picture
Offline
Joined: 2010-03-09

W&R is terrible.. 60% payout.. But you have E&O, ticket charges and other charges..(If you think you are getting nickeled and dimed now just wait).Not worth it.. I have also heard transferring out of there is a pain.. A lot of proprietary products.60% payout means you are below $300K t-12Should look at Stifel or another regional.. won't be 60% payout, but definitely a better name, and less cost out of your pocket..If not try LPL, get 90% and the same expenses you would have with W&R.. W&R is a starting place, like EDJ.. not a life long stop..

CommonSense's picture
Offline
Joined: 2008-10-05

There are a few things that I think you really need to look into at WR.  One is the net payout that has already been mentioned above.  The other is thier platform.  From my understanding, they are highly proprietary.  Will you clients be able to transfer thier assets with no problem and continue the management scenario that  you have sold them on, or will you have to sing a new song at the new firm.  Image: "Mr Jones, I have just switched firms!"  "Yes, Waddell and Reed.  No, they are not a tobacco company.  No, they are a real live investment firm. " "Yes, I want you to transfer your account.  Here is the best part.  You will have to sell out of most of the investments that I loved last week and buy new crap over here.  Why, well... because WR doesn't offer that old crap.  We have new crap.  That is why." Having just left WFA a few months ago, I can not stress the importance of making the transition an easy decision for your clients.  We went to Stifel.  Once I got over how to pronounce the name, it was very easy.  "Mr Jones, Stifel has more money management options than WFA.  Not a single investment will change.  Not one.  Stifel will reimburse you for all of your transfer fees.  No tax implications.  You will like the statement more.  Account fees are about half.  Transaction fees are less.  I have made it easy for you."In the employee side, I would recommend Stifel first, and RayJay second.  In the indy side I would go LPL, but that is my two pennies worth.  As for the retention, we paid it back in full.  Stifel contacted WFA and sent them a check for the exact balance.  They gave us a signing bonus that covered the retention and we got a check from Stifel after they paid WFA.  Clean and easy.   Is WR going to cover your retention?  If not, you will have to pay it back yourself before you can solicit your clients.Final point.  You want to do everything you can to make it easy for your clients to say yes.  That includes not giving your old branch any knives to throw in your back.  If you go to a good firm, it helps.  If you go to a 2nd tier one (i.e. WR), your branch will kill you and you will lose most of your clients.  You might even be out of the business soon.  I know that you have a good relationship and they will follow you anywhere yada yada yada.  After going through the hell they just did, every client is wondering about the grass on the other side.  They view any move as an opportunity to look around.  I was shocked at the clients who looked before they came over.  Your best buddies at your branch will hug you on the way out and start to eat your children before you are out of the parking lot.  I heard it from other people and didn't believe it.  I was wrong.  It has been a tough market and every advisor is a little desparate.  Desparate people do unkind things.Good luck.  PM me for specific tips on leaving WFA the right way.

Please or Register to post comments.

Industry Newsletters
Investment Category Sponsor Links

 

Careers Category Sponsor Links

Sponsored Introduction Continue on to (or wait seconds) ×