Ameriprise
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[quote=Piker34]
It was unprofitable because HRB bought Olde Discount for $800 million in 2000 and changed the name to HRBFA. Then HRB never put any money (no exaggeration) into the brokerage arm. It's kind of hard for 1000 brokers to foot an $800 million bill. Once that $800 million was finally paid (2007 or 08), we started being profitable. Of course, once that payment was gone, we were for sale. RBC, Stifel, and others were in line but Ameriprise was willing to pony up for the tax leads/access to the offices. [/quote] Look at the numbers again. The writedowns from the purchase cost each year were not the only losses. HRBFA was not a profitable division for HRB - if they were, HRB would have held on to it. And HRB did put money into it, not a hell of a lot, but they did some by expanding the platform, technology, etc.. Sorry, not in a midwest corn state. Trying to figure out how much they might offer a wirehouse guy doing $500K fee-based.AMP will offer something in this range to a primarily fee based advisor in the $500k range:
Upfront 25-30%
6 month asset transfer bonus 25% range
18 month production bonus 25-30% range
fixed payout 50% on revenue first year
Each piece has a 7 year note attached to it.
Pretty stiff obligation for a guy who can get twice this money or much more on a 9 year deal all over the place.
I’ve seen an offer that my buddy got and been told it’s pretty much the same for anyone in their target range of $200k and up on the PI side. Be advised… the offer is super complicated and it’ll take an attorney to comprehend it.
PII indy side is a bit different but follows similar logic, just smaller numbers I’m told.
Don’t slay me if I’m wrong today… these are numbers from March timeframe.
[quote=etj4588][quote=Piker34]
It was unprofitable because HRB bought Olde Discount for $800 million in 2000 and changed the name to HRBFA. Then HRB never put any money (no exaggeration) into the brokerage arm. It's kind of hard for 1000 brokers to foot an $800 million bill. Once that $800 million was finally paid (2007 or 08), we started being profitable. Of course, once that payment was gone, we were for sale. RBC, Stifel, and others were in line but Ameriprise was willing to pony up for the tax leads/access to the offices. [/quote] Look at the numbers again. The writedowns from the purchase cost each year were not the only losses. HRBFA was not a profitable division for HRB - if they were, HRB would have held on to it. And HRB did put money into it, not a hell of a lot, but they did some by expanding the platform, technology, etc.. Sorry, not in a midwest corn state. Trying to figure out how much they might offer a wirehouse guy doing $500K fee-based. [/quote] I don't disagree about the profitability. Maybe money wasn't quite the correct terminology. What made the HRBFA experiment fail was lack of integration into the tax offices among other things. Moot point now. I'm not defending. That being said, I liked the platform. I liked the open arch. I liked our research, bonddessk, fixed income new issues (especially preferreds), variety of equity linked CD's, etc. I will fully admit, when we found out Ameriprise was buying us, I started looking for office space and BD's. Riversourse VA's and financial plans are the only thing that came to mind and figured they would push us to sell them. So far, they (Ameriprise) are saying some of the right things. However, every day is a new day.[quote=Piker34]
I don't disagree about the profitability. Maybe money wasn't quite the correct terminology. What made the HRBFA experiment fail was lack of integration into the tax offices among other things. Moot point now. I'm not defending. That being said, I liked the platform. I liked the open arch. I liked our research, bonddessk, fixed income new issues (especially preferreds), variety of equity linked CD's, etc. I will fully admit, when we found out Ameriprise was buying us, I started looking for office space and BD's. Riversourse VA's and financial plans are the only thing that came to mind and figured they would push us to sell them. So far, they (Ameriprise) are saying some of the right things. However, every day is a new day. [/quote] I always feared that the tax integration wouldn't work and it didn't because there are two different mindsets at play - those of the advisors and those of the tax pros - very very different mindsets. I hope things do work well at AMPF, the Olde culture was a lot of fun (so I heard).Financial plans are not a requirement, just encouraged since that is what they advertise.
Also, someone said they dont do options... That isnt true. I do quite a bit of them.Updated.AMP will offer something in this range to a primarily fee based advisor in the $500k range: Over $499,999:
Upfront 25-30% 40%
6 month asset transfer bonus 25% range 50 bps
18 month production bonus 25-30% range 100% production bonus based on months 7-18 as long as you do 60% of recruited T-12
fixed payout 50% on revenue first year 52% enhanced payout on first 3 years
Each piece has a 7 year note attached to it. Production and upfront bonuses carry a 7 year obligation
Pretty stiff obligation for a guy who can get twice this money or much more on a 9 year deal all over the place.
I’ve seen an offer that my buddy got and been told it’s pretty much the same for anyone in their target range of $200k and up on the PI side. Be advised… the offer is super complicated and it’ll take an attorney to comprehend it. This I couldn’t tell you as I have not seen a contract.
PII indy side is a bit different but follows similar logic, just smaller numbers I’m told.
Don’t slay me if I’m wrong today… these are numbers from March timeframe.
[quote=etj4588][quote=Piker34]
However, going forward, the platform, technology, and research (especially for the P1) are adopted from HRBFA. From what they keep telling us, they bought us to adopt our culture. They have admitted candidly that what they did in the past was a mistake and will not sustain future growth. [/quote] HRBFA was wholely unprofitable (thats why HRB dumped it). AMPF is and always has been highly profitable. Why would a company adopt an unprofitable business model in lieu of one that was highly profitable??? Anyone know by chance what AMPF is offering recruits to P1?[/quote]This is terribly incorrect and misinformed.
[quote=etj4588][quote=Piker34]
It was unprofitable because HRB bought Olde Discount for $800 million in 2000 and changed the name to HRBFA. Then HRB never put any money (no exaggeration) into the brokerage arm. It's kind of hard for 1000 brokers to foot an $800 million bill. Once that $800 million was finally paid (2007 or 08), we started being profitable. Of course, once that payment was gone, we were for sale. RBC, Stifel, and others were in line but Ameriprise was willing to pony up for the tax leads/access to the offices. [/quote] Look at the numbers again. The writedowns from the purchase cost each year were not the only losses. HRBFA was not a profitable division for HRB - if they were, HRB would have held on to it. And HRB did put money into it, not a hell of a lot, but they did some by expanding the platform, technology, etc.. Sorry, not in a midwest corn state. Trying to figure out how much they might offer a wirehouse guy doing $500K fee-based. [/quote]again, incorrect. *sigh*
HRBFA was sold because the guy running HRB at the time was trying to figure a way to free up desperate cash to purchase the HRB tax offices back from a franchisee in Texas. To clarify, for the past N years, the HRB tax offices in Texas where not owned by HRB corp! The old man in charge of franchising the tax offices would never let up and it took the sale of Mortgage and HRBFA to get the cash. HRB Bank made significantly less money than either of those divisions but stayed. Think about it.
The numbers are there and do not lie. The production HRBFA's 1000 advisors made matched the same numbers AMP's 10,000. The average production per AMP advisor was in the low 100ks. AMP's own CEO shared this info with us.
In the end, they were buying out their competition. You see, HRBFA's roots CAME from AMP. Nobody knows that. Their names escape me atm, but two gentlemen left the AMP model and took what didn't work at the time and changed it around to form HRBFA. Warren Buffet;s advice.
Regarding Buffett's advice, is that in reference to buying the competition or the two gentlemen going to block and taking what didn't work and changing it?
any idea on where they are regarding marketing budget. they threw around 2% on trailing 12. i go to an office today to look at things and presumably i will see an offer after that.
they asked me to sign something which i have refused. i told them look at my info through nasdr.org. were others asked to sign something (credit check, etc…)?
Most places, especially the financial industry, do a credit check before hiring you. I don’t remember signing anything to authorize it though, I thought they just did it.
Word on the street is that AMP P1 will only have 4 annuity carriers.
Hartford, two others, and of course Riversource. I wouldn’t be surprised if one of the two others was Genworth. Bye, bye JNL, Ohio, TransAmerica
Here’s the kicker…
Wholesalers can no longer visit the reps in the branch. Except, of course, for Riversource wholesalers.
This is what I’m hearing. Can anyone confirm?
[quote=etj4588] Word on the street is that AMP P1 will only have 4 annuity carriers.Hartford, two others, and of course Riversource. I wouldn’t be surprised if one of the two others was Genworth. Bye, bye JNL, Ohio, TransAmericaHere’s the kicker…Wholesalers can no longer visit the reps in the branch. Except, of course, for Riversource wholesalers.This is what I’m hearing. Can anyone confirm?
[/quote]
That’s pretty much on target from what’s been said. I don’t think they have formally said which will be the other carriers. Rumor has it is that Hartford will not be one of them, but who knows. However, you will be able to service existing contracts, make additional payments, and receive trails as long as Ameriprise has a service agreement with them. That list will more than likely encompass most annuity business on the books at HRBFA. I’ll update when I find out more.
As far as the wholesaler thing, you’re spot on. But how are they going to truly regulate that? And how many advisors will not continue existing relationships because of it?
P1 AND P2, or just P1? How is this enforced, and why would they do this? Do they not think this would decrease newer advisors ability to learn about available products as well as learn about HOW the products work?Word on the street is that AMP P1 will only have 4 annuity carriers.
Hartford, two others, and of course Riversource. I wouldn’t be surprised if one of the two others was Genworth. Bye, bye JNL, Ohio, TransAmerica
Here’s the kicker…
Wholesalers can no longer visit the reps in the branch. Except, of course, for Riversource wholesalers.
This is what I’m hearing. Can anyone confirm?
[quote=3rdyrp2]
P1 AND P2, or just P1? How is this enforced, and why would they do this? Do they not think this would decrease newer advisors ability to learn about available products as well as learn about HOW the products work? [/quote]From what I heard, just P1. They will do it because they want the reps to sell Riversource only. Sort of blows a huge hole in anabuhabkuss' theory about AMP adopting HRBFA's culture and business model doesn't it???
I heard P1 could add to existing k’s but would not receive additional commissions only trails. Also, if the wholesalers can’t enter branch or meet with FA’s they will stop focusing on AMP and that should force reps to use Riversource more.
http://www.fa-mag.com/component/content/article/7-news/4306.html?Itemid=40
“Few things are more important to investors than getting unbiased advice from their financial advisors,” Robert Khuzami, director of the SEC’s Division of Encorcement, said in a prepared statement. “Ameriprise customers were not informed about the incentives its brokers had to sell these investments.”Still West of Wall Street?
[quote=Amp2Indy2006] http://www.fa-mag.com/component/content/article/7-news/4306.html?Itemid=40
“Few things are more important to investors than getting unbiased advice from their financial advisors,” Robert Khuzami, director of the SEC’s Division of Encorcement, said in a prepared statement. “Ameriprise customers were not informed about the incentives its brokers had to sell these investments.”Still West of Wall Street?[/quote] Wow Amp2Indy you posted this in several spots. You need to add a disclosure that this happened from 2000 to 2004 and you were still a part of the Amp team. Thanks buddy
[quote=etj4588] [quote=3rdyrp2]
P1 AND P2, or just P1? How is this enforced, and why would they do this? Do they not think this would decrease newer advisors ability to learn about available products as well as learn about HOW the products work? [/quote]From what I heard, just P1. They will do it because they want the reps to sell Riversource only. Sort of blows a huge hole in anabuhabkuss' theory about AMP adopting HRBFA's culture and business model doesn't it???[/quote] I have not heard of this and would be surprised to see this happen.
[quote=tcblock][quote=etj4588] [quote=3rdyrp2]
P1 AND P2, or just P1? How is this enforced, and why would they do this? Do they not think this would decrease newer advisors ability to learn about available products as well as learn about HOW the products work? [/quote]From what I heard, just P1. They will do it because they want the reps to sell Riversource only. Sort of blows a huge hole in anabuhabkuss' theory about AMP adopting HRBFA's culture and business model doesn't it???[/quote] I have not heard of this and would be surprised to see this happen.[/quote] It already has happened. Heard if from the wholesalers themselves!