[quote=BondJamesBond]  The worm has definetly turned in terms of what used to be called "The annual payout cut". No more pay cuts, the troops would mutiny at this point.   [/quote]

When was the last "annual pay cut"?

[quote=aldo63] When I left I was in the 20 percent tile. That was at 500k. [/quote]

Hey, aldo, a little birdy from NJ tells me I had you pegged to a "T"....

I do not know an brokers or management in NJ. i did go to high school in nj back in the 70’s. i also attended the wing bowl in philly a few years back. that was fun.

[quote=Devil’sAdvocate]

Do any of you think it's possible--JUST POSSIBLE--that the big wires are attempting to deal with the relatively unprofitable retail side of their business, and if not successful will simply close all virtually all of their branches and fall back on the much more profitable institutional brokerage and investment banking?

Y'all just don't understand that in today's environment the far flung networks of retail branches are not able to justify its existence.

Clients are more and more comfortable with 800 numbers, Internet access, real-time email alerts and all the rest.  The fee based model came into existence in a frenzy to replace transaction oriented commissions which went to the discounters--next to go will be retail, replaced by call centers and highly focused, and targeted, on-line seminars and training sessions.

The retail producer is going to be given an opportunity to accept what amounts to the role of an independent, or to attempt to transfer their book to another firm, or to retire from the business.

The age of computer literate investors is upon us.  I am at the leading edge of the baby-boomers.  For several years I have been giving my Dad laptops, but he uses his to write letters and do geneology type things.  He has no desire to invest on line, while I cannot imagine not investing on-line.  Those who are younger than me are even more comfortable doing things on their own.

Think about the accounting firms.  Years ago doing individual tax returns was a large part of their business--many firms looked to their corporate clients to pay the overhead and the individual clients were the profit.

Enter H&R Block kiosks in malls and Turbo-Tax.  How did the "Big Eight" frms adapt?  They consolidated and closed offices.  If you didn't have the personality and skills to be an institutional accountant you drifted to other work.

The only constant in business is change.

[/quote]

Yawn...How many times do we have to listen to this? What was it, 1998, that we were doomed by the internet? And 10 years before that No Load Funds made us irrelevant. Yet here we are. Too dumb to know we're an anachronism. So what gives? Could it be that there will always be those who choose to pay for advice? Yeah, that could be an answer.

Here's a test I give to those who believe they've got all the answers and believe there's nothing to this money management thing:

Please answer the following:

The term "No Load" is

A. an investment term

B. an advertising term

C. a legal term

D. A and C

The correct answer is, envelope please, B.

And here's the best part; any smug do it yourselfer who doesn't know this has been had by a very slick, well executed marketing campaign that convinces them that anyone can do it. Just call the 800 number.  And the best part is, most don't know it.

I find it very entertaining that the self assured arrogant 800 number dialer has been snookered by a Madison Avenue sales pitch so slick, they don't even realize they've been sold. That's good!  A perfect con.  Answering anything but B makes them look as uniformed as they really are.   

Hey y'all, I may not be relevant, but I know a sales pitch when I hear one. That these people don't makes them what, smarter than me? 

Meanwhile, I recognize that there are those, like DA, who are capable of doing themselves without damaging themselves. The problem is, these people are few and far between. Some do real damage by convincing the unable to try it themselves, yet are not held to account when things don't work out. I met one retiree who had given up $150,000, fully one quarter of his $600,000 401K rollover, to his investment club's experts recommendations. And that was in the up market of the mid/late nineties. Along with who can are those who can't and shouldn't.

 And yes, if a pro had done that to that retiree they should have to pay the damages. At least the retiree would have recourse.

Personally I like being not pertinent. Its bad news for the competition.

And I'll pass the word to my accountant that he's a dinosaur too. I know that will upset him so much he'll pack up and retire to his second home at the Jersey shore. Or maybe he'll sell that and move full time to his horse farm in Florida. You know what, if it's Ok with you, I'm not going to say anything. I need him and so do many of my clients. The horses can wait.

so, the end result is more money, no?

What's with the new discounting policy?

Corrections to the MS article, in no particular order.

The penalty box is $200k, not $250k and obviously it didn't move to $300k.

The $50k no pay-out deal is for entire households under $50k (and householding rules are pretty liberal) not accounts. It's explained wrong in paragraph one, and corrected a bit in paragraph four.

They also left out a big plus. Transactional business, usually paid out at a lower rate (tier 2), will get paid out at a higher asset-based level (tier 1) on tickets over $500.

[quote=aldo63]I do not know an brokers or management in NJ. i did go to high school in nj back in the 70's. i also attended the wing bowl in philly a few years back. that was fun. [/quote]

It's OK aldo, I hear you're an OK guy, even if things didn't work out production-wise. In all seriousness, don't be bitter, and enjoy AG. We're sure enjoying our recent changes.

Oh, and just as importantly, there’s money for pay hikes and bonuses for admin support.

Mike

This will be my last post on this. I do not work at AG. I did talk to them about opening an office, but they did not pay any upfront money. They did offer 100% payout for the first year and a small salary to be manager for year one.  Managers then get paid a % of the office in the future years.  If they would have offered 75% of the upfront I got, I would have went. They are a great firm with an incredible comp/retirement program and  everyone there is happy.

I am glad you did not get a pay cut. You may remember me because I was the guy who used to ask the tough questions in the town hall meetings. I was eventually told by my manager that I could not ask questions anymore over the shoutdown anymore. Finally I realized that if you cant change it. leave, which i did.I am glad they did not let anyone go. Still the majority of people over there are "dean Witter" brokers with Dean witter accounts. That is not a bad thing, they just would be happier somewhere else.

[quote=aldo63]I am glad you did not get a pay cut. You may remember me because I was the guy who used to ask the tough questions in the town hall meetings. [/quote]

Sure you were aldo, it's always the guys doing $150k (with a relative axed for being long in the tooth in LOS and doing under $225k, see I do know the whole story ) that ask the "tough" questions.

The game's up, aldo, I know the rael deal from old office pals of yours and you don't need to paint any fiction of the others here. Just enjoy AG and know that the housekeeping process that we went through last year, the one that caused your departure, turned out to be a great thing.

Hey, who knows, the next time I'm in NJ if I pass through the massive mall, I may drop in and say hi.

[quote=wanda]

so, the end result is more money, no?

What's with the new discounting policy?

[quote=BondJamesBond] While many firms are making bold moves to simplify, reward higher producers, and flatten the grid to equalize transactional and fee based business;  [/quote]

Who and how?

mike

I will come to visit you on my next golf vacation. OK.

[quote=aldo63]

mike

I will come to visit you on my next golf vacation. OK.

[/quote]

Come on down. If you play golf as your write (or as you produce, from what I've heard) I'll be taking some good money from you on the side bets. 

Oh, and I will not be accepting a check from you. Cash only.

 The jokes on me

as your = as well as you

[quote=BondJamesBond] While many firms are making bold moves to simplify, reward higher producers, and flatten the grid to equalize transactional and fee based business; MS seems to only make small steps in the right direction.  [/quote]

Could you tell us who these "many" firms are and what they're doing?