Everyone on here makes some great points . But lets break it down. First to discount broker the philosophy is you get what you pay for. There are people that buy stocks from you for $9.95. Thats ok. But there are people that want a full service broker . I do my own research and I do the other things that are needed like listening to the conference calls, looking at the quarterly reports ,and of course do my own research. Thats called FULL SERVICE. If people want to go online for 9.95 more power to them . Its called choices . Do you want to fix your own brakes or pay up to have them done for you ?

To the Bank man I would say to you ,not everyone can be a financial planner and help people with their annuities, funds,etc. There are many people out there that want good stock ideas . These people have financial planners already. I tell them upfront I focus on giving you stock ideas for growth/speculation. Its called a business model.

As far as what you said rgd research and lawsuits. My firm is indy so I pick my own research tools and all clients must sign a penny stock waiver for ANY stock they wish to buy under ten dollars.

Joe ,you and SKee make great points as well. But I  do need to get back to work. I enjoy reading both of your guys posts. I am not attacking anyones posts here . Just pointing out that there are people that can have DIFFERENT business models and do the right thing.

Finnally, to the new guy. The bottom line is this . When I go to all my networking events here in the valley. I see and hear all of these financial planners say the same thing. "I help people with their financial needs" (yawn) I would tell you thats what people hear all the time. Its boring and predictable . People want a compelling reason to talk to you . Find one or two good stock ideas to talk to prospects about to get them in the door. And then move forward. Remember, people can buy a VA or Fund from anyone on the street . I can tell you that your competition will probably not be doing it. Also listen to the other guys that post on this forum. They have some good ideas as well. Especially the ones I mentioned on here today.

Well like the George Clooney movie

"Good Night ,and Good Luck" 

[quote=discountbroker]

[quote=joedabrkr]

[quote=discountbroker]all full service guys care about is churning their client’s
accounts.  if you read the forums here…i would say at least
half do not really care about their clients
[/quote]

yah and you discount fellows would SURELY stop clients from churning themselves out of ignorance, right? 
[/quote]



I am just saying that a lot of people on your side of the biz are shady.  Did not mean it as a personal attack. 

For example, lady was a bene of a TOD account.  The full service
broker told her that she had to sell all the stock in the dead person’s
account.  Then move the cash to her new account.  Once the
cash was in here account, he  bought all the stocks back. 



As for me…

I really don’t care about my client’s.  I’ll go ahead and but them
$100,00 k worth of QBID.  I am not required to care about my
client’s, only provide them with the correct info when they ask about
complex investment products. 



Full Service is required to do what is best for their client all the
time, not what is best for you wallet.  I just don’t fully believe
that most full service brokers have their client’s interest ahead of
theirs.  I am sure that most of you are ethical, but some are not
so ethical. 

[/quote]

That sorta sums it all up doesn’t it?

I suppose that’s why so many advisors go to discount firms when they wash out of their training programs…

Yes there are plenty of not so ethical folks on the full service side, and it’s sad.  Then again, how many of those problems are created by high quotas and sales pressure?  Folks will do some desparate things when they’re trying to keep their jobs!

Skee,

Further displaying your lack of intelligence, you generalize about something (my business) that you have no knowledge.

Annuities make up a nice portion of my business (about 55% of my book), mainly due to the fact that I do ALOT of 410K rollovers, and the folks I meet would NEVER do business with someone like you. 

They don't want to be "called with a stock idea."  They make money by saving it, every paycheck, for years until they get ready to retire and they have 3 or 4 or 5 (my avg client IRA balance is just shy of 350K)hundred thousand that they have to rely on for the rest of their lives.  They don't have the desire or inclination to constantly be asked to make decisions regarding their investments.  That's my job.

Or they made they're money in real estate (I work with a lot of developers) who take enough risk as it is, and don't need/want to feel unsafe with their retirement money.

Point being, these folks would NEVER EVER do business with someone like you.  Ever. 

So keep pumping brokered CD's and auction rate preferreds...you are a joke. 

[quote=radernation-1] 

Finnally, to the new guy. The bottom line is this . When I go to all my networking events here in the valley. I see and hear all of these financial planners say the same thing. "I help people with their financial needs" (yawn) I would tell you thats what people hear all the time. Its boring and predictable . People want a compelling reason to talk to you . Find one or two good stock ideas to talk to prospects about to get them in the door. And then move forward. Remember, people can buy a VA or Fund from anyone on the street . I can tell you that your competition will probably not be doing it.

[quote=skeedaddy] Wall Street killed more Jew than the Nazis. [/quote]

Huh?

[quote=discountbroker]   I just don't fully believe that most full service brokers have their client's interest ahead of theirs. 
[/quote]

That's pretty rich coming from a guy on the "make investment decisions on your coffee break" side of the biz where the money is made by encouraging the ill-informed to be the worst sort of investor, the one's most likely to lose their shirts, the "active trader"....

[quote=skeedaddy]
Yeah another expert. In my 12 years in the business, I think I know of one guy that actually did an Exchange Fund trade. "[/quote]

Now you know two  

And three 

Skeet,

I think my point has been made.  How are those National Bank of Wichita 6 month CD's selling today?    

[quote=mikebutler222]

[quote=discountbroker]   I just
don’t fully believe that most full service brokers have their client’s
interest ahead of theirs. 
[/quote]

That's pretty rich coming from a guy on the "make investment decisions on your coffee break" side of the biz where the money is made by encouraging the ill-informed to be the worst sort of investor, the one's most likely to lose their shirts, the "active trader"....

As far as what you said rgd research and lawsuits. My firm is indy so I pick my own research tools

[quote=discountbroker] [quote=mikebutler222]

[quote=discountbroker]   I just don't fully believe that most full service brokers have their client's interest ahead of theirs. 
[/quote]

That's pretty rich coming from a guy on the "make investment decisions on your coffee break" side of the biz where the money is made by encouraging the ill-informed to be the worst sort of investor, the one's most likely to lose their shirts, the "active trader"....

[/quote]
Clients are expected to understand what they are doing where I work, we give them the tools to make their own decisons (This is not a Waterhouse Ad).  I don't really care what they buy or sell, so long as they keep hitting that trade button and adding to that margin debit everyday (I am joking)......

but really.....
there are some shady guys on your side........
there is shady people on my side of the biz as well.....



[/quote]

There are shady people in every line of work. OTOH, you part of the biz is BUILT on encouraging behavior that we all know is destructive to the average investor. Look at the discounter's ads. You're in the last position to consider yapping about anyone else's ethics.

We run around 5 equity strategies.  2 value, 2 growth, and a
dividend strategy.  We use quant data for buy and sell.  We
run them in a discretionary format so I am the portfolio manager, but
we provide monthly updates and quarterly performance reports for the
clients.  They work like a charm, and its less expensive than most
funds and money managers.  They work like a charm and they can
only get it from me.  This has produced many referrals and
additions, so it is well worth the time.

Rightway,

You are great example.  You work on a teamof advisors with assistants, have many years experience, are a CFP, and only NOW (for the past few years from what I gather) are you running customized portfolios.

I think you would agree that there is NO WAY someone trying to build a new book, with the type of asset requirements at a firm like ML, could possible do as a new person in the business what you and your team does at this point in you careers.

It's just a common misconception. 

My point is this business is so hard at first because you must simultaneously be learning product, constantly be prospecting, educating yourself on taxes/financial planning stategies, and be cultivating your sales/closing skills...ALL AT THE SAME TIME.

There is zero time left to do quant analysis, technical analysis, or any other kind of analysis on individual investments.  You have no choice but to use managed products.  So it's a little bit of a shock for those who think they will be watching the market all day. 

Hell, some days I worked all day and I don't even know what the market did.  It doesn't matter from a day to day basis. 

[quote=rightway] We run around 5 equity

strategies. 2 value, 2 growth, and a

dividend strategy. We use quant data for buy and

sell. We

run them in a discretionary format so I am the

portfolio manager, but

we provide monthly updates and quarterly

performance reports for the

clients. They work like a charm, and its less

expensive than most

funds and money managers. They work like a

charm and they can

only get it from me. This has produced many

referrals and

additions, so it is well worth the time.

[/quote]



Now this is what I was talking about. That is pretty

darn neat rightway. Is the process that others have

described (building up a large book of clients and

then later in the process developing a team and your

own investing strategies) how it worked in your

case?



I realize that there is just too much going on in the

early stages of becoming a broker. I just think that I

would rather give people sound investing

strategies/advice — or put together a portfolio or fund

that can compete — than try to force transactions in

order to make money…

… that last bit came out a little wrong. I’m sure most

full-service brokers make transactions in order to

satisfy a clients investing needs… but I would hate to

see myself even thinking about a situation where I

would be having to make trades for commission’s

sake instead of for a client’s benifit.

Then you need to be an independent advisor, where you decide how much income or how litttle income you want to make. If you work for someone else (Jones, SB, ML or other wirehouse) you are under a production quota and must reach your goals or you are out the door.  Actually independent BDs also have production quotas or else they will either drop you or you have to pay an accomodation fee (for being a pain in the butt to them without making them money  . Usually the requirments are are much less than that required at a wirehouse.  I usually meet mine in the first month or two of the year.

That is why I became an independent advisor.  If I want to waste time typing to you on this board and not make a required number of cold calls... It is my business. My production goals are my own.....well mine and the utility and mortgage company's.  Obviously, we all need to make a living.

Also I understand (I think) that the minimum production can be shared by several brokers.  For example: if the office goal is to have 500k of production to be a stand alone office then maybe  it will take 2 or 3 people to make the minimum.

[quote=babbling looney]

Then you need to be

an independent advisor, where you decide how

much income or how litttle income you want to

make. If you work for someone else (Jones, SB, ML

or other wirehouse) you are under a production

quota and must reach your goals or you are out the

door. Actually independent BDs also have

production quotas or else they will either drop you or

you have to pay an accomodation fee (for being a

pain in the butt to them without making them money

. Usually the requirments are are much less than

that required at a wirehouse. I usually meet mine in

the first month or two of the year.

That is why I became an independent advisor. If I

want to waste time typing to you on this board and

not make a required number of cold calls… It is my

business. My production goals are my own…well

mine and the utility and mortgage company’s.

Obviously, we all need to make a living.

Also I understand (I think) that the minimum

production can be shared by several brokers. For

example: if the office goal is to have 500k of

production to be a stand alone office then maybe it

will take 2 or 3 people to make the minimum.

[quote=babbling looney]

 If you work for someone else (Jones, SB, ML or other wirehouse) you are under a production quota and must reach your goals or you are out the door.  [/quote]

I hear this "quota" line often, but aside from my training time at ML, I've yet to see it in real life. Granted, firms will clean house (like MS did last year) and kick out brokers doing under some very, very low number (LOS 8, under $225k was MS's line last time) every so often, but I hardly think it's fair to call that a quota.