A time for...encouragement...and bragging

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JimMorrison's picture
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Joined: 2005-07-12

Hey fellas,
I used to come on here all the time.  It got to be a bit monotonous, so now, after about 8 months, I'm back again...with a new and more exciting name :).
I am younger in the business...been in about 2 years now.  I have almost $19,000,000 under mgmt.  I work at Jones.  I won't forever...when I can leave, I will.  I am already doing more C-shares and looking at the crappy EJ managed acct program to start annuitizing the business.
I am thinking about the business and sometimes get discouraged at the "marathon" aspect of it.  I would like to hear some real-life success stories...your stories.  Like...mine (not a success yet) would read:
2 years in the business...monthly residual gross of $1,500.  Last year did $165,000 gross.  Net last year was $65,000.  AUM=$19mil
I am most interested to hear about the residual business you have built and, with as much detail as possible, your ways of going about increasing that portion of your business.  Also, for those truly independent now, what percentage payout do you get (before expenses and overhead is fine)? 
I completely understand if you want to fudge your numbers a bit to maintain anonmymity, but if you have to skew them wildly, please don't bother post them as I am looking for realistic numbers in the business.
Thanks and have fun bragging -- and at the same time encouraging us younger brokers.
Jim

Sailor25's picture
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Joined: 2005-04-09

1.2MM
190MM

Indyone's picture
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Joined: 2005-05-30

Hey Sailor,
Nice numbers, but I think we need at least one more number...your W-2 (or net if you're indy)

JimMorrison's picture
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JimMorrison wrote:
I am most interested to hear about the residual business you have built and, with as much detail as possible, your ways of going about increasing that portion of your business.  Also, for those truly independent now, what percentage payout do you get (before expenses and overhead is fine)? 

it would be easy now just to post your numbers--and that is fine.  but, please, if you can spare 3-4 minutes, please post details pertaining to the above.  try to take yourself back to your 2nd year in the business when you still needed guidance.  thanks again!

indytwo's picture
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Joined: 2005-06-01

mr morrison
You need more experience.  I would say you need at least 5years and be producing 250k per year before you make the change.  Most b/d's want at least 200k in production before they will take you on.  Plus you will get assitance based on your prior year commssion levels.  Hang in there be patient and then leave
 
 

JimMorrison's picture
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Joined: 2005-07-12

i was afraid this might happen...please don't let this turn into a thread about when i should or should not go independent...i know i am not ready now...that is not the issue. 
some say "start the business with the end in mind"...this thread is about seeing what that end can look like for me (and does currently look like for some other folks).
thanks for the advice though.

YoBrad's picture
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Joined: 2005-07-09

I have been at Jones for 7 years.  I have to disagree with you
regarding the Managed Account Program.  It's not crappy and I have
$10,000,000 in the MAP program and getting about $500,000 a
month.  My assets are $50,000,000 and I did $500,000 gross last
year.  I also make $6,000 net every month between service fees and
Managed Account Program Fees.  I would reccommend you take Jones
up on the Continuing Education offer and get your CFP.  They paid
for all my classes and I am taking the test Friday.  I think if
you have the credentials and build the business then you will have the
confidence to go out on your own.

Guest1's picture
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Joined: 2005-01-16

Jim, why the C shares and the "crappy" MAP program to annuitize your business?? Doing what is right for the client is the best way to annuitize your business. YoBrad, great foundation. After 13+ years I walk into about 10k net a month the first day. I have 3xs your assets, so you are doing well..

zacko's picture
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Joined: 2004-12-01

Hi,
C shares are fine and I use them all the time.  I use multiple fund families in putting together portfolio's and A shares don't make sense much of the time due to front end loads.  I am more than happy to take a pay cut for the first 4-6 years by using a C share if I think the client will benefit in the long run by having more flexibility and control and a more diversifed portfolio.  I also like smoothing out my income.
The "MAP" program is the only thing you have so,..if you like the concept--go with it.  Fee based is becoming a larger part of my business all the time.  When I left Jones I had 80 something million and had 3 million in C shares and no fee based.  18 months later I have 100 million AUM.  14 million in C shares, 4 million in fee based and another 3 million in annuities that pay me a 1% trail.   I did 760k last year with a net/net of 66% (takehome pay after all overhead).  I'm off that this year about 7% due to fee based and C shares placements.
My total fee based and Trail income (with A shares incl) should be darn close to 300k next year.  That's a 90% payout on that stuff too which is 270k for turning the key.....so that's about $22,500 net per month.  Wow--that's not half bad.  That covers all my office overhead and my home bills too!   
One of the best things about indy is you can take your business in any direction you want.  Your payout will be the same on all share classes A, B, or C which is a refereshing change from Jones.  Your not being manipulated into doing a certain share class or being told what's the best for YOUR client. 
Hopefully that was some of the detail you were looking for and if I were to change one thing--it would have been to annuitize my business sooner.  I like it and so do the clients BTW.

rightway's picture
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Joined: 2004-12-02

Sailor25 wrote:1.2MM
190MM

You posted somewhere out here you were "interviewing" with Morgan, UBS,
and AG Edwards, and you were waiting for the results from some of
them.  Those numbers do not warrant an "interview";  you
would simply choose where is best for your busienss.  You even
said Morgan had administered a "test".  Does a million dollar
producer with nearly $200 mil need to do one of those tests at
Morgan?  If so, I would tell them where to put the test.

BankFC's picture
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Joined: 2005-05-27

Rightway,
Nice call out on a big fat liar.  A million dollar producer would not ever have to take a "test".  As you said, it is simply a matter of deciding who has the best package of resources, compensation, etc. 
Sailor25 is knee deep in his own BS.

Player's picture
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Joined: 2004-12-08

Guest1 wrote:Jim, why the C shares and the "crappy" MAP program to annuitize your business?? Doing what is right for the client is the best way to annuitize your business. YoBrad, great foundation. After 13+ years I walk into about 10k net a month the first day. I have 3xs your assets, so you are doing well..
Guest1
Try honesty.......it works even better............................after 13+ yrs at Edward Jones and you allow your own firm not to do so.
Is is not right for your customer to know the TRUTH? 
By the way what is your opinion of the stupid remarks made on here by your favorite Drone Bill F-upped.........he is a very sick person, and one of Edward Jones self proclaimed stars......and yes you must be so proud of his statements? 

JimMorrison's picture
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Joined: 2005-07-12

any other non-bank producers care to weigh-in?  no offense to the bank brokers, but it comes to you and you don't have to go get it...
thanks,
JimMorrison

JimMorrison's picture
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Joined: 2005-07-12

bump

Sailor25's picture
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Joined: 2005-04-09

So sorry, nit-pickers. Did I use the wrong word? I suppose I should have said "meetings" instead of "interviews."

Perhaps I should not have bothered to participate in this discussion.

JimMorrison's picture
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Sailor25 wrote:So sorry, nit-pickers. Did I use the wrong word? I suppose I should have said "meetings" instead of "interviews." Perhaps I should not have bothered to participate in this discussion.
 
don't feel too bad, you actually hardly participated.

rightway's picture
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Joined: 2004-12-02

I think creating portfolios of C Share mutual funds will come under
extreme scrutiny in that they do, in fact cost more.  Not that the
flexibility is not a positive factor though, its just these accoutns
will be "means tested" (much like wrap accounts are going through
now).  What I mean is that you will only be paid the 1% trail on
the assets on the for a certain time period.  The SEC will not
stand for a 55 Year old client holding his portfolio in a static C
share mix or fund with no management beyond the fund level, and us
getting paid 1 % for ever. Just my opinion.

george's picture
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Joined: 2005-07-10

just transitioned from being a RR to being a licensed branch manager
fora large national bank.  I get the manager's salary, but also
generate commissions.  It's a six figure a year gig, all told, and
I get four weeks *paid* vacation a year.  If a HNW client comes
into the bank, I can sell them, but I no longer spend every hour of
every day trying to find somebody with $100,000 to invest.  Me
happy now  

annuity guy's picture
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Joined: 2005-03-27

george wrote:just transitioned from being a RR to being a licensed branch manager fora large national bank.  I get the manager's salary, but also generate commissions.  It's a six figure a year gig, all told, and I get four weeks *paid* vacation a year.  If a HNW client comes into the bank, I can sell them, but I no longer spend every hour of every day trying to find somebody with $100,000 to invest.  Me happy now  
How nice for you. You've worked your way up to being an "employee" who is subject to being fired for any little reason.

JimMorrison's picture
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Joined: 2005-07-12

yeah, please no need for arguments...we all know bank brokers are employees, just like office assts and can be fired anytime...they just get paid a little more.  now, anyone that is INDEPENDENT and had to prospect to find their book--->  see first post.
thanksJimmy
 

Indyone's picture
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Joined: 2005-05-30

Hey Jim,
I appreciate your desire to hear from non-bank channel, but I can tell you from experience that while the above may be generally true, it's far from fact.  As a bank rep, I've built 90% of my business MYSELF, and taken plenty of business from brokers with LPL, Wachovia, Edward Jones (lots from them), Morgan Stanley, Smith Barney and several others.  I have absolutely no local brokers that have taken more from me than vice versa.  Furthermore, I have plenty of mutual respect with local CPAs and I'd venture to say that if I met him, I could change the opinion of your CPA friend (well, at least about ONE bank rep).
More than the channel, it's the advisor.  I'm not going to get all huffy and offended or anything that, but I wanted to assure you that there are plenty of very talented bank reps who could make it just fine in a wirehouse or independent.  I myself am in the process of going independent because frankly, I think the bank is more of a hindrance than a help to me and I am tired of being told what I can and cannot do...well beyond compliance issues.  Generally, referrals received from the bank are junk.  There's a little gold, but you must sift through a tremendous amount of crap to find it.
I don't have any live experience as in indy to tell you about yet, but if you follow my RJ vs. LPL thread in this forum, I'll try to keep you posted on my progress.

JimMorrison's picture
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Joined: 2005-07-12

indy...i appreciate your well-delivered and civil response...you have me at least partially convinced that what you say may be true.  i still believe that probably MOST brokers go the bank route because it is easier and no prospecting required...at least all that i have met in my area that have joined the banks or credit union.s  i will keep abreast of your progress through said thread. 
everyone else....still interested to hear about your annuitized business models!!!
Jimm

Dewey Cheatham's picture
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Joined: 2004-12-01

Dude...quit bumping your thread.  It is dead.  You have all of the pertinent responses.

JimMorrison's picture
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Joined: 2005-07-12

Dewey,
Not nice...and quit assuming i am a "dude".

rightway's picture
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Joined: 2004-12-02

george wrote:just transitioned from being a RR to being a licensed branch manager fora large national bank.  I get the manager's salary, but also generate commissions.  It's a six figure a year gig, all told, and I get four weeks *paid* vacation a year.  If a HNW client comes into the bank, I can sell them, but I no longer spend every hour of every day trying to find somebody with $100,000 to invest.  Me happy now  
Not sure of your situation, but I have been in branch management, a bank rep, and a bank rep sales manager.  It would be very challenging to run a branch, and run "HNW" client relationships.  Not that it cannot be done, but scheduling Teller time off and HR issues one munite and meeting with a HNW client about NUA another just seems spreading it too thin.  Not that it cannot be done in a day, but the compliance risks worry me. 
I have a friend who went to a bank from a regional as a rep/banker and was given a book.  She had a batch of terrible portfolios, so she set out to bring these people in.  Most would not respond or come in, in fact the bank didn't take it seriously either.  That was until one of these customers took her to arbitration (after her accountant pursuaded such action) because the portfolio she inherited 15 months prior lost money.  She contacted the customer several times and they never came in.  The bank had no contact management system and the Arb panel questioned the "notes" the rep had scribed and put in the file.  The bank lost and the rep got a tick on her u4.
Moral?  Be a banker or an advisor- not both.
 
 
 

Player's picture
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Joined: 2004-12-08

It's over....................................

Player's picture
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Joined: 2004-12-08

Jimbo,
Get a grip, fish or cut bait, go to work........................If you can't prospect go to Edward Jones they have the best training for newbies, if you have tried to prospect and can't or won't then go to a Bank, be happy and live a good life helping people.........  If, you don't want to help people the do us all a favor and get out of the business.........

JimMorrison's picture
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Joined: 2005-07-12

anyone else want to weigh in here?

compliancejerk's picture
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Joined: 2004-12-03

jim/Kevin/sapphire whomever.
and what pray tell is your wonderful opportunity with one of your clients?

zacko's picture
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Joined: 2004-12-01

lol

Dewey Cheatham's picture
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Joined: 2004-12-01

JimMorrison wrote:anyone else want to weigh in here?
 
Does anybody else hear the sound of a dead horse being whipped?
Dead Jim/Kevin/David (oops...assumed you were a dude).  The thread is dead.

compliancejerk's picture
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Joined: 2004-12-03

what makes this even funnier is that Dead Jim/Kevin/David/sapphire whomever is currently with EJ  just leave them and leave us alone.

JimMorrison's picture
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compliancejerk wrote:what makes this even funnier is that Dead Jim/Kevin/David/sapphire whomever is currently with EJ  just leave them and leave us alone.
 
anyone--->chime in if you understand any of this??

xej1984's picture
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Joined: 2004-11-30

dead jim = jim morrison
you have signed off as Kevin and David
in one post you alluded not to be a male and in another post that it's been some time since you previously posted.  sapphire was a switch hitter
your post about making heaps of dough and trying to sneek something by St.Louis by working for a client whose W9 you've seen...
in other words you don't recall what you've written????

JimMorrison's picture
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Joined: 2005-07-12

xej1984 wrote:
dead jim = jim morrison
you have signed off as Kevin and David
in one post you alluded not to be a male and in another post that it's been some time since you previously posted.  sapphire was a switch hitter
your post about making heaps of dough and trying to sneek something by St.Louis by working for a client whose W9 you've seen...
in other words you don't recall what you've written????

 
So good sir, what is your conclusion?  That I am someone with the moniker of Sapphire or Dead Jim?  OK.  Forgive me if I'm lost in your mighty sleuth deductions.  More importantly, why does it matter so much?  Would you like to take me out to dinner sometime and this is just your coy way of asking me out?  I'll be anyone you want me to be for a night out with you. 

compliancejerk's picture
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Joined: 2004-12-03

jm, so someone else understood me. great
so jm, I see you time with ej hasn't made you any brighter.
 

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