Get your jokes in while you can, give me five years and we will see who is laughing.  I know I am the butt-end of all the forum jokes right now.  Just keep bringing them, it just fuels the fire I have to not only make it, but to be the very best at what I do.  Just as I was the top Lawn Mower salesman, and graduated Magna Cum Ladue, I plan to be at the top of this industry. 

[quote=WADRED]

Get your jokes in while you can, give me five years and we will see who is laughing.  I know I am the butt-end of all the forum jokes right now.  Just keep bringing them, it just fuels the fire I have to not only make it, but to be the very best at what I do.  Just as I was the top Lawn Mower salesman, and graduated Magna Cum Ladue, I plan to be at the top of this industry. 

completely understand and agree!

[quote=WADRED]

Get your jokes in while you can, give me five years and we will see who is laughing.  I know I am the butt-end of all the forum jokes right now.  Just keep bringing them, it just fuels the fire I have to not only make it, but to be the very best at what I do.  Just as I was the top Lawn Mower salesman, and graduated Magna Cum Ladue, I plan to be at the top of this industry. 

[/quote]

Not to worry, Wadred.

Edward Jones is the butt of all the jokes in this industry!

I know I am the butt-end of all the forum jokes right now.  Just keep bringing them, it just fuels the fire

Just remember, something like 75% of Americans who leave their jobs - blow out their 401ks, they take a taxable distribution and spend the money.

The average retiree, at retirement age, has about $125,000 in their 401k, if they have one.

Do you think a lot of people need your help? Do they care where you work or who your broker dealer affiliate may be?

 Most of the complaints here are about the services and costs of a particular broker dealer affiliate. A downtown broker is no better than a strip mall broker. This has been proved time and again, in a myriad of ways, for anyone who is paying attention.

Enjoy every minute of this wonderful career, and when you're not havnig fun, make some adjustments.

I wonder why wadred continued posting when he clearly either (A) ignored our advice, or (B) was unable to get a position at a better firm.  We explained in detail the capacity of the larger firms compared to W&R.  The broker can ONLY DO SO MUCH.  If they provide great returns, then good for them, but are they utilizing all the tools they have access to in order to develop an allocation that fits each clients individual needs?  If you want to deal with high net worth individuals, you are a fool not to look at the wirehouses, no matter how good or bad you think you can be as a broker.  You offer the same funds as W&R, as well as offering managed futures, structured investments, IPOs, and so much more.  I got a bad taste in my mouth for W&R when I interviewed with them (looking into my options) and was asked why I would want to sell other funds when their's are sooo much better.  In the end, the arguement is not against W&R as much as it is FOR the larger firms.  I hope this finally makes sense to you wadred.  I don't think the larger firms are the end all, but to act like W&R offers the same things and provides someone entering the industry with the same opportunity for success as a wirehouse is just plain ignorant. 

[quote=jemstar]thanks for the info guys, not exactly the news I wanted
to hear, but its a good thing I heard this before I got into
deep.[/quote]



Try finding a local RIA, and see if you can work with them as an inhouse analyst / portfolio manager.



I’ve been trying to find a protege for the longest time so I can focus
more on prospecting, but even after you assign people to read Klarman’s
margin of safety, a lot of people still don’t get value investing.

Well said Looney I couldn't agree more.  Like I said earlier they  have zero fee based options.  That to me is a major drawback although I guess some people might not care.  I actually think he would be better off starting in a good Indy office like a LPL or Commonwealth working with an older planner looking for a protege.  Just my opinion though.

No fee-based options?????  You all "know" W&R is not as "good" as every other firm in the industry, but at least get your facts straight about them.  They have plenty of fee based options. 

http://www.waddell.com/jsp/index.jsp?top=8&side=4&in ner=1&subinner=0&supersub=0&pagetitle=Compensati on&wdrid=waddell

.

Getting fees for doing a financial plan.... and having a fee-based platform for SMA or MF NAV accounts are.... uh.... different...

WADRED- Cmon man get in the game…

  Correct me if I am wrong here as I have just passed the 7 and am studying for the 66, so I have no actual experience yet.  Here is a direct quote from W&R website.

Service Fees
Because our strongest emphasis is on first-rate client service at Waddell & Reed, we tie a portion of your income to service. Also called "12-b1 fees" or “trails,” service fees are paid based on your clients’ assets under management. The larger your practice, the more time spent on client service, the higher the service fee.

This is not just a fee for a "Financial Plan" this is a fee for actual products sold, and is a trailing fee.  Like I said I don't know how this works yet so don't completely blast me.

It works like this, Wadred.

If the mutual fund that you're selling carries a 25 basis point trail, your B/D gets 1/4 of 1% a year in "service fees".  If you did, say, $1 million of ABC Funds with 25bps trail, your B/D would receive $2500.  If you get a 60-40 split, that would give you $1000 pretax net.  If the value of the fund goes up, so does your trail.  I don't do much fund business any more, but if memory serves, most fund families recalculate quarterly.  (I might be mistaken here...if so, would one of you who does MFD business help me out here?)

[quote=WADRED]

  Correct me if I am wrong here as I have just passed the 7 and am studying for the 66, so I have no actual experience yet.  Here is a direct quote from W&R website.

Service Fees
Because our strongest emphasis is on first-rate client service at Waddell & Reed, we tie a portion of your income to service. Also called "12-b1 fees" or “trails,” service fees are paid based on your clients’ assets under management. The larger your practice, the more time spent on client service, the higher the service fee.

This is not just a fee for a "Financial Plan" this is a fee for actual products sold, and is a trailing fee.  Like I said I don't know how this works yet so don't completely blast me.

[/quote]

How can that be.  Are you a liar or did you say you passed the 7.  And how did you pass the 7 without a sponsor?

Go Google 12-b-1 fees and leave us alone.

Whoa vbrainy just because you are ignorant doesn't mean you have to call me a liar.  Of course I am sponsored, by Waddell & Reed.  I have my insurance license and my series 7 passed, will take the 66 within the next 2 weeks.  I know what 12-b-1 fees are, I just didn't understand why some people were calling them financial planning fees when they are not.  It doesn't make sense to say W&R doesn't have a fee-based compensation when they clearly have 12-b-1 fees.  Man, I am feeling more confident in my ability to succeed in this industry, with people like vbrainy I guess a caveman can do it. 

[quote=WADRED]

....... with people like vbrainy I guess a caveman can do it. 

[/quote]

Good one

WADRED-

You can't be serious.  Anyone that sells loaded MF's gets 12b-1's.  It's not "fee-based" business as the industry knows it.  These are referred to as "trails".  And the 25bps you get might pay your monthly mortgage in a few years, but it isn't going to sustain you unless you have tons of MF assets under management.  You're going to earn commissions and get a sliver from 12b-1's going forward.  Not sure what those Planning Fees will amount to, though.

Seriously, you wouldn't get blasted if you weren't so arrogant.  There's nothing wrong with not knowing the answers yet, but don't claim to be the next coming of Moses in a suit.

WADRED, This is like asking the Chevy guys if you should buy a Ford.

You will need a 7, as you stated.  This folks are misinformed. 

There are 51 funds shown on my sheet dated 9-6-06.  I sell Franklin, American and of course W&R funds.  They ALL have advantages and disadvantages.  Remember, however, W&R is a fund company, something the brokers don’t understand, including myself until I actually started here.

We don’t hire everyone.  I hired 2 last year.  I was required to hire 4.  There is pressure for hiring, but all firms are this way.  I see all the brokerage and insurance guys (and I know most of them personally), at the college career fairs.  We are in a college town and have no shortage of resumes.  I refer many of my rejects to some of these other folks.

You can work with anyone here.  You’re not limited to the “high net worth” prospects all the brokerage guys are after.  Although we have FA’s specializing in that as well.  I work mostly insurance on business and estate cases.  Many of my clients have brokers for their investments.  That does not bother me in the slightest.  It’s not me they call when the markets are down.

Since we are a fund company, there are the opportunities to go the analyst and portfolio mgr route as well.  You really need to think about where you want to go, however.  Whether W&R or any other firm, this is not a job you come in and see how it goes for a year or two.  Those 60 hour weeks will still apply, but you will really start to see the payoff in the 3-5 year range.

Business is done different, but I am a value investor.  If you come from a brokerage you will scratch your head.  Being a value investor and having the ability for input, the things coming in the near future look great.

Finally, payouts are better, costs are lower and your clients are yours.   You are an independent business person and this also gives much more flexibility.

Hope this helps and let the bashing continue, but don’t worry about it.  Do what you feel is bets for you.  Just remember the difference between doing research and working with people.

WR I am going to be very nice to you to get you out of the cult.  One you say you do insurance.  My question for you is you like to use Nationwide one of the most sued insurance companies FYI.  Or do you just push all your stuff through Bisys and let them take thirty percent off the top.  Next  payouts better                           .  Ok I am now done laughing I think. Let’s see how about I just throw out LPl at 90% compared to your 50%.  Yeah your payout is way better your right.  Next up the clients are yours, I don’t think so.  My friend who works there showed me a sheet he had signed because he got a bunch of house accounts.  In little letters on the very back the statement to this affect was these clients are the sole property of WR and if advisor leaves the firm he can’t contact the clients period.  A few months ago a my friend tried to land a big account and couldn’t because WR had no fee based.  They did have a mutual fund wrap program called MAP or SPA  I don’t remember which.  Anyway WR pulled the program to revamp it and it hasn’t come back yet.  You can compare that to about ten different fee based platform LPL has and there is no comparison.  Lastly look up Stephen Sawtelle.  Since both of you have shown an incredibly lack of due dilligence I will paraphrase for you.  Sawtelle had over 2800 clients division manager top dog in the firm.  Hires young advisor because he was grandson of client.  Advisor is literally Satan’s spawn banned for life from the industry basically stole clients money.  Sawtelle warned WR of problems.  WR ignored it.  When the sh was about to hit Sawtelle is suddenly the scapegoat all his clients get letters smearing him and years and millions of dollars later in attorneys fees Sawtelle is awarded the largest ever arbitrage award at 27 million.  Thats 27 million from WR because they tried to smear his name.  This was their number one so you just go on believing in your Oz, maybe the Tin Man will appear for you.

Maybe this is why this industry is looked at as if we were all car salesmen.  Everyone is always out for #1, and a young college student comes in and asks for some advise and everyone just throws the company under the bus.  I would love to hear back from the same guy now and see how he is doing.  Just to understand the facts. W&R does offer their MAP product (Managed Allocated Portfolio) which includes a financial plan and asset weighted portfolios, which offer the advisor a fee based product.  They also offer a SPA product that works well also.