The cost of moving
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Its already been said, but i’ll at my two cents anyway, WTF. It makes no sense to me to move from a wire, especially if you are happy, to another wire. You are owned. You cant predict the future, so whatever check you get, you better put it in the bank and make believe it doesnt exist. Because you have no control over what the new wire will decide 3 years from now about the grid, or all the other myriad ways they pay you. So you may need it to pay them back. Then you have to go thru the whole transition thing all over again.
If you consider indie, thats another story. The mystique of the wirehouse is gone...poof...just like that. I left a wire 3 months ago to go indie. My clients had no problem with it. Did i have to explain it to a few folks? Sure. But they got it. Over 90% came with me. I have over 100% of the assets i had before I moved (with market appreciation). For me it was about lifestyle as much as about money. Like another poster said, i will get my big check, when i retire. And nobody will own me. Make no mistake, indie is not for everyone, and if you are happy where you are, maybe you should stay. I am not touting indie as the answer to all the worlds problems. But it is way more an alternative for a lot of people than it used to be, and more than people at the wirehouses, who are all brainwashed, believe. Wire to wire is for horses, not brokers. It makes no sense. To the original poster - if you are interested, PM me, i am traveling but will be back next week, and i'll be happy to share my experience with you, FWIW., I got an enormous amount of help and support from these forums during my decision making process and if i can help in any way, let me know.[quote=Sportsfreakbob]Its already been said, but i’ll at my two cents anyway, WTF. It makes no sense to me to move from a wire, especially if you are happy, to another wire. You are owned. You cant predict the future, so whatever check you get, you better put it in the bank and make believe it doesnt exist. Because you have no control over what the new wire will decide 3 years from now about the grid, or all the other myriad ways they pay you. So you may need it to pay them back. Then you have to go thru the whole transition thing all over again.
If you consider indie, thats another story. The mystique of the wirehouse is gone...poof...just like that. I left a wire 3 months ago to go indie. My clients had no problem with it. Did i have to explain it to a few folks? Sure. But they got it. Over 90% came with me. I have over 100% of the assets i had before I moved (with market appreciation). For me it was about lifestyle as much as about money. Like another poster said, i will get my big check, when i retire. And nobody will own me. Make no mistake, indie is not for everyone, and if you are happy where you are, maybe you should stay. I am not touting indie as the answer to all the worlds problems. But it is way more an alternative for a lot of people than it used to be, and more than people at the wirehouses, who are all brainwashed, believe. Wire to wire is for horses, not brokers. It makes no sense. To the original poster - if you are interested, PM me, i am traveling but will be back next week, and i'll be happy to share my experience with you, FWIW., I got an enormous amount of help and support from these forums during my decision making process and if i can help in any way, let me know.[/quote] Don't bet on ALL of us being brainwashed. Maybe that's how it used to be, but not the folks in my office. Also, don't even try to compare the services available at indies versus a wire. It's not even close, and you know that. This is probably what keeps all of us "owned" by the wires for so long. You're right about the mystique thing, though. I've never felt like there was anything magical about being at a wire, nor have I ever felt better than anyone else. And I have to admit that when indies can provide equal or better products to my clients as a wire can, I will certainly consider making a change. The benefits would then far outweigh the negatives. But please don't paint us all with a broad brush. LAThe big one is alternative investments for me-- hedge funds, managed futures, etc. Not all indies can get them. Those that can get them may not have the banking services that a wire has. Also, my clients like simplicity. Being able to consolidate almost anything, including their banking, cards, points, annuities, life insurance, stocks, bonds, statements, etc is very attractive to them. Yes, I know indies have card programs, banking products, etc, but (correct me if I'm wrong) they aren't nearly as robust as the wires' programs. Also, we have the world's largest trading floor, which virtually guarantees best execution for large trades or trades in thinly traded securities some knucklehead transfers in. Our financial planning software is the best on the street. The integration between software products is also better at a wire. The financial planning software talks to the CRM software, and the they both are integrated with the trading platform, etc. That doesn't mean that the indies aren't catching up, though. And one day, when they do, I'll be shopping. One thing that intrigues me is the new Pershing i-phone style software package. This is first platform that allows the indie to select his or her own app (like the i-phone) and have it integrate with all the other apps. Kinda like the wirehouse platforms, but with the FA being able to select which off the shelf financial planning software to use with whatever CRM tool he or she wants to use, etc. And they are all compatable and communicate with one another. When they have that up and running, look out. It will set the new standard. Lastly, for big accounts, name recognition still helps close the deal. I'm not talking $1-5 million dollar accounts. I'm talking $5-100 million relationships. The endowments, the corporate strategic reserves, the family office. I admit, my business isn't entirely comprised of these types, but I do have them, and I don't feel that they would be as comfortable in the relationship without the large firm backing me. At least I'm man enough to admit it. LALew,
I agree that saying all wire reps are “brainwashed” is a bit too broad of a stroke…but I truly think you are wrong in regards to what products & services indies can and cannot offer. Can you elaborate on exactly what you feel that an Indy CANNOT offer, that you CAN @ a wire?
Lew-
You have highlighted all the greatness of wires. Now I am indy and will go toe-to-toe with you on every point. Your day of reckoning is much closer than you think. Our financial planning software is the best on the street. For a minute I thought you might be with Jones! I'll compete with your 150 page boiler plate report anyday. Do you have account aggregation yet( updated nightly). Do you have an electronic vault to hold all of your clients documents that centers of influence can have constant access to if needed? Someday we will all have the same tools, and it will come down answering the phone and value added services. As an indy I have been incorporating alternatives for the last two years. Do you have non-traded REITS at your disposal? Nobody has everything and for you to assume that you are the best...lah-ti-dah reminds me of the Jones newbie who thinks that their operation is different. And at a wirehouse, today, you have been stained by your manangement no matter who you work for.Oh one last point. I am closing a 5M deal next week competing against Mother Merrill and Jones. And you know what…they want someone without conflicts of interest, totally indy.
I agree with Lew, that when you start looking at accounts over $10MM, that the wires have an advantage, but then they also have to compete with Hedge Funds and RIA platforms.
As far as software, rumor has it that some of the software is the same as the stuff on the street(Money Guide Pro) just recalibrate(read Branded) for their company.
RIA platforms have access to boatload of technology, TD, Schwab, all have great technology.
the numbers are easy…at 100% upfront, it doesn’t make sense. At 250% or better, it does - but unfortunately you missed those days. I think it will be a long time before we see those numbers for anything but top quintile 1 guys…
Thanks for the info, ice. I have a friend at RJ, and he likes it a lot there. It doesn’t hurt that Jeff Saut called the bottom in March-- no really, he did. Art Cashin is a great guy, but he can’t lay claim to that one.
Like I said in previous posts, I am definitely keeping an eye on the indie platforms. I think they are gaining ground every day. The bottom line right now for most of us with decent-sized, established practices is inertia. It is just one big PAIN IN THE ARSE to change firms. I've done it, but with a practice half the size it is now. The day I move to another firm will be the day that I've exausted all other avenues at my current firm. Hopefully, it will never come to that. UBS has its problems, but the problems don't really hurt my business at this point. One day they might, but not right now. I really like most of the technology, banking, investment, and financial planning, statements, etc. Every platform has improved since I came here, except for the CRM software. But we've even been able to leverage the current platform to work for us. And they plan on upgrading it in 1Q 2010. So we keep plugging along every day, doing the same thing you're probably doing, and hoping things get better in our beaten-up industry. LA[quote=BigCheese]Lew-
You have highlighted all the greatness of wires. Now I am indy and will go toe-to-toe with you on every point. Your day of reckoning is much closer than you think. Our financial planning software is the best on the street. For a minute I thought you might be with Jones! I'll compete with your 150 page boiler plate report anyday. Do you have account aggregation yet( updated nightly). Do you have an electronic vault to hold all of your clients documents that centers of influence can have constant access to if needed? Someday we will all have the same tools, and it will come down answering the phone and value added services. As an indy I have been incorporating alternatives for the last two years. Do you have non-traded REITS at your disposal? Nobody has everything and for you to assume that you are the best...lah-ti-dah reminds me of the Jones newbie who thinks that their operation is different. And at a wirehouse, today, you have been stained by your manangement no matter who you work for.[/quote] Oh yeah? Well last night, I stayed at a Holiday Inn Express.[quote=JoeNatlanta] the numbers are easy…at 100% upfront, it doesn’t make sense. At 250% or better, it does - but unfortunately you missed those days. I think it will be a long time before we see those numbers for anything but top quintile 1 guys…
[/quote] Who besides UBS was offering 250%? (And if UBS was still offering 250%, would you want to go there?)